The Calcutta High Court directed to file an application before Additional Chief Secretary in the matter of Execution of subsisting Government contracts awarded in pre-GST or post GST regime without updating Schedule of Rates (SOR).
The writ petitioner, M/s. Classic & Anr, has been filed 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 petitioners have 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 VAT henceforth.
The Bench of Justice Md Nizamuddin note that the writ petitions are disposed of by giving liberty to the petitioners to file appropriate representations 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.
The Court made it clear that on receipt of such representations 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 that till the final decision is taken by the Additional Chief Secretary, no coercive action shall be taken against the petitioners. In case of default in making representations within the time stipulated herein this order will not have any force.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
