Inclusion of GST,Bidder cannot challenge Bid Condition or Clause after participating in a Tender Process: Kerala HC [Read Order]

The Kerala High Court while dealing with a case related to the inclusion of GST , the Bidder cannot challenge Bid Condition or Clause after participating in a Tender Process.

the petitioner's bid was awarded the contract of the SreeSankaracharya University of Sanskrit invited online bids for the purchaseand installation of a 300 KVA diesel generator set and suitable load sharing panel from registered bidders of PWD/CPWD/MES etc.  During the course of the work, he was also entrusted with certain additional work. 

While executing the work,  the petitioner submitted running bills for the supply and service of each item.  As against the total bill of Rs.52,87,385.30 with GST @ 18%, an amount of Rs.47,55,990/- alone was paid.  The petitioner requested to release the balance amount of Rs.4,94,486/due towards GST payable, after setting of TDS collected @ 2%, and the amount deducted towards workers' welfare fund. Further amount of Rs.1,06,371/- was released by the respondent. 

The petitioner contended that the estimated cost declared by the first respondent was without taxes.  Nowhere in the notice inviting quotations for the supply of goods and services, it was specified that the bidsshould be inclusive of all applicable taxes. 

As per Section 9 of the Goods and Services Tax Act taxis leviable on all intra-State supplies of goods or services or both, exceptalcoholic liquor.   As such the University is statutorily bound to pay the GST remitted by the petitioner.

Standing Counsel for the University submitted that the tender document it is specifically stated that the bidders should quote the amount including all taxes.  As per Clause 11(f) of the General Conditions of Tender, stipulates that all rates quoted should also include sales tax.  

It was contended that, afterparticipating in the tender and securing the contract, the petitioner cannot claim the GST amountin addition to the amount he quoted. The petitioner was fully aware of this factand had acceptedthe second and final part payments without GST.  

A Single member comprising Justice V G Arun observed that Clause 11(f) of the General Conditions of Tender specifically stipulates that all rates quoted should be inclusive of sales tax also.   After the introduction of the GST regime, the term sales tax has to be understood as goods and service tax.    Thus, the tender document provided for the inclusion of goods and service tax.

While Dismissing the petition the Court observed that “after participating in a tender process, the bidder cannot turn around and challenge the conditions in the bid document.”  Even otherwise, the factual disputes involved cannot be decided in a writ petition under Article 226.

To Read the full text of the Order CLICK HERE

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