The Calcutta High Court directed the Additional Chief Secretary, Finance Department to decide in the matter of additional tax liability on subsisting Government contracts in pre or post GST regime without updating the Schedule of Rates (SOR).
The writ petition has been filed by Bikramjit Paul, the petitioner, for the relief by way of direction upon the respondent’s authority concerned to bear the additional tax liability for execution of subsisting Government contracts either awarded in the pre-GST regime or in the post GST regime without updating the Schedule of Rates (SOR) incorporating the applicable GST while preparing Bill of Quantities (BOQ) for inviting the bids.
The petitioner has also prayed for relief of issuance of direction upon the respondent’s authority concerned to neutralize the impact of unforeseen additional tax burden on Government contracts since the introduction of GST w.e.f. 1st July, 2017 for ongoing contract awarded before the said date and to update the State SOR incorporating applicable GST in lieu of inapplicable West Bengal value added tax (VAT) henceforth.
A Single Bench of Justice Md Nizamuddin observed that “Considering the submissions of the parties this writ petition is disposed of by giving liberty to the petitioner to file appropriate representation in the aforesaid regard as referred in preceding paragraph of this order, before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. On receipt of such representation the Additional Chief Secretary, Finance Department shall take a final decision within four months from the date of receipt of such representation after consulting with all other relevant departments concerned.”
The Court also directed to consider such representation shall be considered and final decision will be taken up by the Additional Secretary, after giving opportunity of hearing to the petitioner or his authorized representatives. Till the final decision is taken by the Additional Chief Secretary, no coercive action shall be taken against the petitioner.
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