In a significant case, the Calcutta High Court was directed to file representation before the additional secretary since the execution of subsisting government contracts awarded in the pre or post-Goods and Service Tax (GST) regime without updating the Schedule of Rates(SOR).
Sunshine Enterprise & Ors., the petitioner filed a writ petition 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 the post-GST regime without updating the 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 the unforeseen additional tax burden on Government contracts since the introduction of GST w.e.f. 1st July 2017 for an ongoing contract awarded before the said date and to update the State SOR incorporating applicable GST instead of inapplicable West Bengal VAT henceforth.
After considering the issue, the single-judge bench of Justice Md. Nizamuddin directed the petitioner to file an appropriate representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from the date. “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 bench added.
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