Court orders Petitioner representation on VAT to GST tax transition reimbursement, relief granted

The Court directed the Petitioner to submit a representation to the appropriate authority regarding the non-reimbursement of the differential tax amount due to the transition from VAT to GST in works contracts. The authority was instructed to review and address the representation based on revised guidelines, with the Petitioner retaining the right to challenge the decision. No coercive action was allowed against the Petitioner until a specified date. The writ petition was disposed of in accordance with the Court's directions, providing relief to the Petitioner in seeking reimbursement under the new GST regime.

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Issues:
Challenge to non-reimbursement of differential tax amount due to change from VAT to GST in works contract under GST regime.

Analysis:
The writ petition challenged the Opposite Parties' action of not reimbursing the differential tax amount resulting from the transition from Value Added Tax (VAT) to Goods and Service Tax (GST) effective from 01.07.2017. The main issue highlighted was the difficulty faced by contractors in works contracts under the new GST regime. The Petitioner contended that the introduction of GST required them to pay taxes not initially anticipated in their agreements.

The Court directed the Petitioner to submit a comprehensive representation to the appropriate authority within two weeks, outlining their grievances. The authority was instructed to review and address the representation based on revised guidelines issued by the Finance Department, Government of Odisha, preferably by 15.03.2021. The Petitioner was granted the right to challenge the authority's decision if aggrieved, and no coercive action was permitted against the Petitioner until the specified date.

Furthermore, due to the COVID-19 pandemic, the parties' counsel were advised to use the soft copy of the order available on the High Court's website or a printed copy as per the prescribed method, equivalent to a certified copy, as per the Court's Notice No. 4587 dated 25th March 2020. The writ petition was disposed of in accordance with the directions provided in the judgment.

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