Interestingly, the order was passed in March 2018, but reserved for publication till now.
The Gujarat High Court has ruled that, price revision will not be allowed in Contract due to the change in Goods and Services Tax (GST). Interestingly, the order was passed in March 2018, but reserved for publication till last week.
The petitioner M/s Bipson Surgical (India) Pvt. Ltd is engaged in the business of manufacture and distribution of Surgical Dressing items such as Bandages, Gauze etc. That the respondent No.2 GMSCL is a procuring agency of Government of Gujarat which procures the drugs, surgical items etc. from different manufacturers and distributors for the supply of the same to the Government Hospitals throughout the State of Gujarat.
While dismissing the petition, the division bench comprising Justice M.R Shah and Justice A.Y Kogje observed that, “the grant of any relief as prayed in the present petitions would tantamount to varying terms and conditions of the tender document / rate contracts which in exercise of powers under Article 226 of the Constitution of India shall not be permissible”.
“In the present case the liability to pay GST under the GST / CGST Act is upon the supplier. As observed hereinabove the price quoted and the rate contract was inclusive of all the levies and taxes. Therefore, the petitioners shall not be entitled to the revision of price as sought”, the bench said.
“It cannot be said that either the State and/or the respondent No.2 have acted unfairly and/or unjustly and/or unreasonably and/or the decision of the State / respondent No.2 is contrary to the public good and/or the public interest. Under the circumstances, the aforesaid decisions shall not be applicable to the facts of the case on hand”, the Court added.To Read the full text of the Judgment CLICK HERE