Temple Festival Vendor Cannot Challenge GST Demands After Accepting Tender Terms with Tax Payment Conditions

The HC dismissed a writ petition challenging GST demands in a temple festival tender. The petitioner, who won a bid to sell products, argued the GST demand contradicted CGST Act provisions. The court ruled that participants cannot challenge tender conditions after voluntarily accepting them. Since the tender explicitly required payment of applicable taxes, and tax exemption questions require factual determination, the court directed the petitioner to seek remedies under Section 54 of GST enactments rather than through writ proceedings.

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Issues:
Challenge to tender cum auction notice demanding GST from petitioner on tender bid and successful bidders.

Analysis:
The petitioner challenged a tender cum auction notice demanding GST from them on the tender bid and successful bidders. The petitioner participated in a tender for a temple festival and was the successful bidder for selling a specific product. The petitioner argued that the respondents were demanding GST from them, which was contrary to the provisions of the Central Goods and Services Tax Act, 2017. The respondents, on the other hand, contended that the supply made to the petitioner was not exempted from tax and that they were passing on the tax incidence to the petitioner. The respondents claimed that the petitioner had voluntarily paid the GST as per the tender conditions. They also argued that the temple activity was not charitable, therefore liable for GST. The respondents presented a printout regarding GST exemptions for charitable activities.

The court considered the arguments from both sides and noted that the tender conditions required the petitioner to pay applicable tax. The court observed that the question of whether the respondents were exempt from tax could not be decided in a writ proceeding. It was mentioned that if the petitioner believed they were not liable to pay tax, they could seek a refund under Section 54 of the GST enactments. Referring to a Supreme Court case, the court emphasized that once a bidder participated in a tender, they could not later claim exemption from the tender conditions. The court concluded that the petitioner could seek remedies under the GST enactments but dismissed the writ petition, allowing the petitioner to approach the appropriate authorities for relief.

In conclusion, the court dismissed the writ petition challenging the GST demand in the tender cum auction notice, advising the petitioner to seek remedies under the GST enactments. The court highlighted that once a bidder participates in a tender, they cannot later claim exemption from the conditions. The judgment emphasized the need for proper adjudication by the GST authorities and suggested the petitioner approach the authorities for refund if they believed they were not liable to pay tax.

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