The High Court of Orissa (HC) allowed the petitioner to approach appellate authority for reimbursement of differential tax for works contracts from regime change from Value-Added Tax (VAT) to goods and service tax (GST).
The petitioner/s. Nobadurga Construction Pvt. Ltd, has challenged the action of the opposite parties in not reimbursing the differential tax amount arising out of change in tax regime from Value Added Tax (VAT) to goods and service tax (GST).
Batch of writ petitions are being filed on this issue. The main issue involved in such matters is the difficulty faced by the contractors due to change in the regime regarding works contracts under GST. The grievance of the petitioner, in view of the introduction of the GST, Petitioner is required to pay tax which was not envisaged while entering into the agreement.
The Government has now come out with revised guidelines in this respect in supersession of the guidelines issued vide finance Department letter. The petitioner has filed additional counter affidavit of opposite party-authority in similar cases annexing the revised guidelines relating to works contract under GST issued by the government of odisha.
The Coram comprising the chief justice Dr. S Muralidharan and the justice M.S.Raman observed that the petitioner shall make a comprehensive representation before the appropriate authority, within four weeks from today ventilating the grievance. If such a representation is filed, the authority will consider and dispose of the same, in the light of the aforesaid revised guidelines dated 10th December, 2018 issued by the finance Department, government of Odisha.
The court further added that if the petitioner will be aggrieved by the decision of the authority, it will be open for the petitioner to challenge the same. The writ petition is disposed of.
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