GST-related supplemental agreements in existing works contracts were upheld as a valid exercise of statutory power, without breach of natural justice.

A general difficulty-removal order issued to implement GST in pending works contracts was held valid under the tender statute, because the original bid conditions already contemplated adjustment of tax differences if GST came into force during execution. The Court found that requiring existing contractors to negotiate and execute supplemental agreements did not exceed the statutory power, since the order operated generally and did not itself impose a final contractual alteration. The challenge on jurisdiction and natural justice therefore failed, as the measure did not prejudice contractors or deny a hearing before any supplemental agreement was concluded.

---

---

Issues: Whether the Government Order requiring existing works contractors to negotiate and execute supplemental agreements on the introduction of GST was valid, and whether it was issued without jurisdiction or in breach of natural justice.

Analysis: The contract was entered into before the GST regime came into force, and the bid conditions themselves contemplated adjustment of tax difference if GST was implemented during execution. The impugned Government Order was issued to remove difficulties arising from implementation of GST in pending works contracts and was held to be within the power conferred by Section 21 of the Tamil Nadu Transparency in Tenders Act, 1998. Since the order operated generally on existing contractors and only required negotiation before supplemental agreements were entered into, it was held not to prejudice the petitioner or violate natural justice.

Conclusion: The Government Order and the consequential proceedings were upheld; the challenge failed.

Final Conclusion: The writ petition was rejected as the impugned GST-related administrative instructions were found to be a valid exercise of statutory power and not vitiated by any jurisdictional defect or denial of hearing.

Ratio Decidendi: A general difficulty-removal order issued under the tender statute to facilitate implementation of GST in existing works contracts is valid where it only requires negotiation for supplemental agreements and does not impose any final alteration without opportunity to object.

---