2018 (1) TMI 1003 - HC - GST

High Court upholds Geological Survey of India's decision in tender dispute over GST inclusion

The High Court of Calcutta upheld the decision of the Geological Survey of India, Eastern Region, in a tender process dispute where the petitioners ... Validity of Tender process initiated by the Geological Survey of India, Eastern Region by a notice inviting tender dated April 27, 2017 - Held that: - Action of the authorities in obtaining information from the participants as to the tax implications cannot faulted - On evaluation, the authorities found the price quoted by the successful bidder to be lower than that of the petitioner after taking GST implications. Such a decision cannot faulted as being perverse - there is no material irregularity in the decision making process of the respondent authorities or their decision warranting an interference by the writ Court - petition dismissed. Issues: Challenge to tender process initiated by Geological Survey of India based on GST implications in financial bids.The High Court of Calcutta addressed the challenge to a tender process initiated by the Geological Survey of India, Eastern Region, in a case where the petitioners were initially declared as the lowest tenderer but later found not to be so due to the inclusion of GST in the financial bids. The petitioners argued that their bid did not include GST, while the successful bidder's bid did. The respondent authorities enquired about the tax implications from all participants to ensure a level playing field. The authorities ultimately accepted the bid of the successful bidder as it was financially more favorable after factoring in GST. The court held that the decision-making process of the authorities was not irregular, and there was no justification for the court to interfere. The writ petition challenging the tender process was dismissed, and no costs were awarded.