The bench of Rajani Dubey of Chattisgarh High Court directed the petitioner to make a fresh claim on the reimbursement of additional Goods and Services Tax (GST) paid.
Further, the court directed the authorities to proceed with the necessary scrutiny and enquiry. Based on the same, the authorities were asked to reimburse the additional tax liability incurred upon the petitioners, suitably be refunded.
The writ petitions of the Petitioner Companies, involved in construction of road, bridges, tolls etc and were awarded works contracts at different points of time were heard together.
The main grievance of the petitioners was against the inaction on the part of the respondent State Authorities in not granting refund of 6% additional GST liability imposed upon them w.e.f. 18.07.2022 on the works contract being executed by the them, even though the contract between the parties was signed prior to 18.07.2022 and the tender was submitted and accepted by the respondent authorities with 12% rate of GST liability at the relevant point of time.
Arvind P. Datar (senior advocate) with Harsh Wardhan, appeared on behalf of the appellants claimed that the actions and inactions on the part of the respondents are wholly unreasonable, illegal, arbitrary and violative of fundamental rights of the petitioners enshrined under Article 14, 19 (1) (g) and 21 of the Constitution of India.
Further stated that it is settled principles of law that no law can be given retrospective operation unless expressly provided. It is highly unjustified, inappropriate, high handed to apply to the amended GST rate of 18% in respect of concluded contract.
Additionally, some departments of the Government of Chhattisgarh have already recommended providing reimbursement to the contractors of the increased GST liability of 6%, but the PWD Department has not issued any order till date for reimbursement of additional GST liability.
Tushar Dhar Diwan and Chandresh Shrivastava represented for respondents Union of India and State respectively submitted that the State Government has only decided to reimburse those differential amounts, which have been incurred by the contractor on count of new tax for those contracts which have been executed prior to the coming of GST.
The bench directed that the whole exercise be done within a period of 4 months from the date the petitioners make a fresh claim before the respondent authorities concerned to additional tax liability.
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