Court directs review of tax liability post-GST for pre-01.07.2017 contracts, emphasizes 2% VAT over GST.

The Court directed the Commissioner of Commercial Taxes to consider the petitioner's representations on tax liability post-GST implementation, emphasizing contracts executed before 01.07.2017 should only be subject to 2% VAT, not GST. The Commissioner was ordered to review the submissions and issue orders within four weeks, ensuring the petitioner's authorized representative receives a personal hearing. The case highlighted complexities arising from the Central Goods and Services Tax Act, 2017, and the need for clarity on tax liabilities for works contracts.

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Issues:
1. Interpretation of tax liability post enactment of Central Goods and Services Tax Act, 2017.
2. Representation by the petitioner regarding tax imposition and non-consideration.
3. Impleadment of Secretary to Government, Commercial Taxes Department, and Commissioner of Commercial Taxes.
4. Consideration of representations and passing orders by the Commissioner of Commercial Taxes.

Interpretation of tax liability post enactment of Central Goods and Services Tax Act, 2017:
The petitioner, an association for the welfare of Road Contractors, raised concerns post the enactment of the Central Goods and Services Tax Act, 2017. They highlighted issues arising from the notification by the Central Government levying 6% tax on Works Contract. The State Government's empowerment to levy additional tax led to a total tax liability of 12% towards works contract. The petitioner made representations emphasizing that contracts executed before 01.07.2017 should only be subject to 2% VAT, not GST. The Court acknowledged the complexities and directed the Commissioner of Commercial Taxes to consider the representations and pass orders within four weeks.

Representation by the petitioner regarding tax imposition and non-consideration:
The petitioner association submitted multiple representations to the respondents, stating their stance on tax liability post-GST implementation. They emphasized that if compelled to pay above 2%, the GST should be remitted by the respondents. The representations were made on various dates in 2017, highlighting the contractual obligations and the need for clarity on tax liabilities. Despite the submissions, no orders were passed, leading to the petitioner seeking legal intervention for resolution.

Impleadment of Secretary to Government, Commercial Taxes Department, and Commissioner of Commercial Taxes:
During the legal proceedings, the petitioner was directed to implead the Secretary to Government, Commercial Taxes Department, and the Commissioner of Commercial Taxes. The Government Advocate for Taxes accepted notices for the newly impleaded respondents. The Court emphasized the importance of involving the Commissioner of Commercial Taxes in addressing the petitioner's concerns due to the technical nature of the issue and the need for a specialized response.

Consideration of representations and passing orders by the Commissioner of Commercial Taxes:
In light of the representations and the stand taken by the parties, the Court directed the Commissioner of Commercial Taxes to review the petitioner's submissions and issue orders based on merit and legal provisions within four weeks. The Court also mandated that the petitioner's authorized representative be given a personal hearing by the Commissioner. The petitioner was instructed to provide copies of the representations and the Court's order to ensure effective compliance with the directions provided.

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