M/S Gordhandas Gobindram vs. State Of Chhattisgarh

Held

The Court disposed of the writ petition by permitting the petitioner to approach respondents No. 2 to 5 with a fresh claim and necessary proof of the additional tax liability incurred due to the introduction of GST. This approach is to be made within one week. The respondents-authorities are directed to scrutinize the claim and take a decision within 90 days from the date of receipt of the claim, keeping in mind the State Government's order dated October 10, 2018. The Court implicitly acknowledged the validity of the petitioner's claim based on the State Government's policy and the precedent set in the M/s D.A.Enterprises case. No specific finding was recorded on the quantum of tax liability, as the matter was remitted for fresh consideration.

Facts

The petitioner, M/s Gordhandas Gobindram, filed a writ petition challenging the additional tax liability incurred due to the introduction of GST from July 1, 2017. This liability arose from contracts awarded prior to GST implementation. The petitioner sought a refund of this additional tax, relying on a State Government policy decision dated October 10, 2018, which mandated reimbursement of such additional tax for pre-GST contracts. The petitioner also cited a previous High Court order in a similar case, M/s D.A.Enterprises v. State of Chhattisgarh, which allowed a writ petition under identical circumstances. The State, through its counsel, agreed to consider the petitioner's claim if a fresh claim with supporting documents proving the additional tax liability was submitted.

Key Issues

1. Whether the petitioner is entitled to reimbursement of additional tax liability incurred due to the introduction of GST on contracts awarded prior to July 1, 2017, in light of the State Government's policy decision dated October 10, 2018? (Question of law) 2. Whether the State Government's policy decision dated October 10, 2018, is binding on the respondent authorities for reimbursement of additional GST liability on pre-GST contracts? (Question of law) Petitioner's contentions: The petitioner argued that they are entitled to reimbursement of the additional tax liability incurred due to GST on contracts awarded before its implementation. They relied on the State Government's policy decision dated October 10, 2018, and a High Court judgment in M/s D.A.Enterprises v. State of Chhattisgarh, which dealt with identical facts and granted relief. Respondents' contentions: The State Counsel submitted that the petitioner's claim would be considered in terms of the State Government's order dated October 10, 2018, provided the petitioner furnished a fresh claim with all relevant proof of the additional tax liability incurred.