Innovative Group Conference And Event Solution PVT LTD vs. Deputy Commissioner And Anr

Held

The Court held that there was no irregularity or illegality in the demand raised by the respondents for GST at 18% on the tender amount of Rs. 1,61,74,260/- as offered by the petitioner. The Court examined the tender document and found that only two fields, bidder's name and basic rate in column 13, could be operated. Upon entering Rs. 1,61,74,260/- in column 13, this very amount was reflected in column 53, which relates to the total amount with all taxes. This indicated that there was no auto-generation or auto-correction of the amount after filling the basic rate; rather, the amount entered in column 13 was auto-reflected in column 53. The Court also considered the price schedule of another company, 'The Prince Trading Company', which participated in the same tender process. Their basic rate quoted was Rs. 1,33,11,111/-, and this amount was reflected in both column 13 and column 53. The ratio decidendi is that the tender system's functionality, as observed by the Court, did not support the petitioner's claim of an automatic calculation error leading to an inflated total. The Court found no merit in the petition and dismissed it.

Facts

The petitioner, Innovative Group Conference and Event Solution Pvt. Ltd., filed a writ petition challenging the demand for Goods and Services Tax (GST) above the tender amount of Rs. 1,61,74,260/-. The respondent, Deputy Commissioner, Chamba, had floated an e-tender for temporary 'Mela' shops. The petitioner claimed that while participating, they entered a basic rate of Rs. 1,37,00,000/-. However, the tender site did not accept this amount and, upon entering the amount including 18% GST above the basic rate, it generated Rs. 1,61,74,260/-. The petitioner contended they were not liable to pay any amount exceeding this figure, citing the price schedule which showed the basic rate and total amount with taxes as Rs. 1,61,74,260/-. The respondents, however, submitted that the petitioner was liable to pay 18% GST over and above the bid amount of Rs. 1,61,74,260/-.

Key Issues

1. Whether the demand of the respondents for paying GST above the tender amount of Rs. 1,61,74,260/- is illegal and liable to be quashed? (Question of law and mixed fact and law, turning on the interpretation of the tender document and the calculation of the final bid amount). Petitioner's arguments: The petitioner argued that the respondents themselves had shown the total amount inclusive of taxes as Rs. 1,61,74,260/- in the price schedule. They contended that since no other tax was mentioned, their claim should have been accepted, and they should not be directed to deposit GST over and above this amount. They relied on Annexure P-8, the price schedule, where column 13 (basic rate) and column 53 (total amount with all taxes) reflected the same figure. Respondents' arguments: The respondents, while not denying the material fact regarding the reserve price, submitted that the petitioner was liable to pay not only the bid amount of Rs. 1,61,74,260/- but also 18% GST over and above the same.