Nagarajan .K vs. The Government Of Tamil Nadu

Facts

The petitioners, registered Class I contractors with the Public Works Department, sought a Writ of Mandamus to direct respondents 1 to 5 (Government of Tamil Nadu and its officials) to disburse service tax, interest, and penalty amounts. These amounts were related to services rendered by the petitioners for the periods 2014-2018 and 2015-2018. The petitioners had previously been held liable to pay service tax by a Division Bench of the High Court, which also granted them liberty to collect the tax from the Government. Despite representations, the Government had not disbursed these amounts. The petitioners' claim was under consideration by the first respondent, as stated by the Additional Government Pleader.

Held

The Court allowed the writ petitions. It directed the first respondent, the Government of Tamil Nadu, to consider the case of the petitioners and pass appropriate orders within a period of twelve weeks from the date of receipt of a copy of the order. The Court found that the petitioners' claim was under consideration by the relevant authority and deemed it appropriate for the appropriate authority to consider and pass orders. The Court did not delve into the merits of the service tax, interest, and penalty amounts themselves but focused on directing the administrative authority to process the petitioners' claim. No specific issue was left undecided, as the Court disposed of the matter by issuing a direction for consideration.

Key Issues

1. Whether the petitioners are entitled to a Writ of Mandamus directing the Government of Tamil Nadu and its officials (Respondents 1-5) to disburse the service tax, interest, and penalty amounts for services rendered between 2014-2018 and 2015-2018, based on their representations and a letter from the Executive Engineer (5th Respondent). Petitioner's Argument: The petitioners argued that they are entitled to the disbursement of service tax, interest, and penalty amounts as they had rendered services to the Public Works Department and were granted liberty by a previous High Court order to collect these taxes from the Government. They contended that despite their representations, the Government had failed to disburse the amounts. Revenue/State's Argument: The Learned Additional Government Pleader for respondents 1 to 5 submitted that the claim of the petitioners was under consideration.