Bid Rejection Upheld Due to Tax Discrepancy: Rounding Off at Payment, Not Bidding

The Court upheld the rejection of the Petitioner's bid by the Tendering Inviting Authority due to a tax figure discrepancy, emphasizing that rounding off tax amounts should occur at the payment stage, not during bidding. The Court dismissed the Petitioner's reliance on the CGST Act provision for rounding off, stating it should apply later. The judgment underscores the need for strict compliance with bid requirements and accurate information provision during bidding to prevent disqualification on technical grounds.

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Issues:
Challenge to rejection of bid by Tendering Inviting Authority based on rounding off tax figure under CGST Act, 2017.

Analysis:
The Petitioner challenged the decision of the Tendering Inviting Authority to reject their bid and award the contract to the second highest bidder. The rejection was based on the Petitioner's rounding off of the tax figure, which the Authority considered as a suppression of material fact. The Authority shortlisted two Service Providers out of 16 bidders, and the Petitioner's bid was rejected due to the alleged discrepancy in the tax amount mentioned.

The Petitioner relied on Section 170 of the Central Goods and Services Tax (CGST) Act, 2017, which allows rounding off of tax amounts to the nearest rupee. However, the Court dismissed this argument, stating that the exercise of rounding off the tax figure should occur at a later stage when actual filing of returns and payment of tax is due, not during the bid submission process. The Court found no error in the decision of the Tender Inviting Authority to reject the Petitioner's bid based on the tax figure discrepancy.

The Court emphasized that the bidding stage is not the appropriate time to apply the rounding off provision under the CGST Act, as it should be done during the actual payment of tax. Therefore, the Court dismissed the writ petition, upholding the rejection of the Petitioner's bid. The judgment highlights the importance of adhering to bid requirements and providing accurate information during the bidding process to avoid disqualification based on technicalities.

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