Petitioner granted time to contest GST-related tax burden; must file representation within 4 weeks or lose relief. The writ petition concerning the additional tax burden on government contracts due to GST implementation was disposed of by granting the petitioner the ...
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Petitioner granted time to contest GST-related tax burden; must file representation within 4 weeks or lose relief.
The writ petition concerning the additional tax burden on government contracts due to GST implementation was disposed of by granting the petitioner the liberty to file a representation with the Additional Chief Secretary, Finance Department, Government of West Bengal, within four weeks. The Additional Chief Secretary must decide within four months, consulting relevant departments, and refrain from coercive actions against the petitioner until a final decision is reached. The petitioner must file the representation within the specified time, or the order becomes ineffective. The decision must be reasoned, considering relevant HC judgments.
Issues involved: The issues involved in the judgment are the liability of additional tax burden on Government contracts due to GST implementation and the need to update the Schedule of Rates (SOR) to incorporate applicable GST.
Liability of Additional Tax Burden on Government Contracts: The writ petition was filed to seek direction for the authority concerned to bear the additional tax liability for executing Government contracts awarded in both pre-GST and post-GST regimes without updating the Schedule of Rates (SOR) to include applicable GST in the Bill of Quantities (BOQ) for inviting bids. The petitioner also requested relief to neutralize the impact of unforeseen additional tax burden on ongoing contracts awarded before the introduction of GST on July 1, 2017, and to update the State SOR to include applicable GST instead of the inapplicable West Bengal VAT going forward.
Decision and Directions: After hearing the submissions of the parties, the writ petition was disposed of with the petitioner being granted liberty to file a representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks. The Additional Chief Secretary was directed to make a final decision within four months of receiving the representation after consulting with all relevant departments. It was emphasized that any coercive action against the petitioner was prohibited until the final decision was made. Failure to file the representation within the stipulated time would render the order ineffective. The Additional Chief Secretary was instructed to make a reasoned and speaking order considering all relevant judgments of different High Courts that the petitioner intended to rely on.
Conclusion: The writ petition, numbered WPA 21646 of 2023, was disposed of with the mentioned observations and directions for the parties involved in the matter.
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