The Himachal Pradesh High Court has recently upheld the demand order of Goods and Services Tax (GST) as reflected in the Basic Rate from Price Schedule of the assessee, Innovative Group Conference and Event Solution Pvt. Ltd. in tender.
The petitioner, while participating in the tender process, it filled up the basic rate as Rs.1.37 Crores, but the tender site did not accept the amount and when the amount was filled including 18% GST above the basic rate of, it generated a figure of Rs.1.61 Crores-the total amount.
The petitioner contended that he was not liable to pay an amount over and above Rs.1,61,74,260/-.
Neel Kamal Sharma, arguing on behalf of the petitioner, placed strong reliance in support of this submission on the price schedule appended with the petition wherein the basic rate was reflected as Rs. 1.61 Cr. and likewise the total amount with all taxes was also shown to be the same.
The petitioner counsel submitted that, once the respondents themselves have shown the aforesaid amount inclusive taxes and there was no other tax, then the claim of the petitioner ought to have been accepted by the respondents rather than directing it to deposit the entire amount along with 18% GST.
The revenue, on the other hand filed a reply wherein the material fact regarding reserve price has not been denied. However, it is submitted that the petitioner was liable to pay not only the bid amount of Rs. 1,61,74,260/- but also liable to pay 18% Goods and Services Tax (GST) over the same.
The Court, upon examination of the tender’s website observed that, “it is evidently clear that there was no auto generation of the amount at the site after filling in the basic rate. On the other hand, it is absolutely clear that the amount as was entered” and that “it stands established that the amount filled-up by the petitioner in column No. 13 of Rs.1,61,74,260/- was auto generated at Sr. No.53 and was not at all auto corrected.”
The Division Bench of Justice Tarlok SIngh Chauhan and Justice Virender Singh further stated in the judgment that, “we find no irregularity much less any illegality in the demand raised by the respondents of GST @ 18% on the tender amount of Rs.1,61,74,260/-, as offered by the petitioner.” , upholding the GST demand.
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