GST reimbursement claims under new SOP to be decided by competent authorities within a fixed time

Differential GST reimbursement claims arising from pre-GST works contracts were directed to be examined by the competent departmental authorities under the newly framed SOP. The HC held that, at this stage, it was unnecessary to comment on the SOP's clauses because the grievance lay before the concerned departments and State instrumentalities, and the petitioners could pursue fresh or pending claims before them. Any adverse decision would create a fresh cause of action. In view of the long pendency, the authorities were instructed to decide the individual claims in accordance with law and the SOP within eight weeks, without any adjudication on the merits of the claims.

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Issues: Whether the claims for reimbursement of differential GST on pending bills arising out of pre-GST works contracts should be decided by the competent departmental authorities in terms of the newly framed SOP, and whether the Court should examine the clauses of the SOP at this stage.

Analysis: The writ petitions concerned ongoing works contracts that straddled the transition to the GST regime and the consequential claim for reimbursement of differential tax burden. An SOP had since been framed by the State to provide a mechanism for dealing with individual claims, and the grievance remained at the level of the concerned departments or State instrumentalities. In that situation, the Court held that it was not necessary to comment upon the clauses of the SOP at this stage. The petitioners were left free to press their claims before the competent authorities or to make fresh claims, and any adverse decision would give rise to a fresh cause of action. As the claims had been pending for a long time, a time-bound decision was warranted.

Conclusion: The competent authorities were directed to decide the individual claims in accordance with law and the SOP within 8 weeks, and the writ petitions were disposed of without any adjudication on the merits of the individual claims.

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