Contractual GST condition in tender upheld; writ challenge to 18% levy and exemption claim failed.

A writ challenge to 18% GST stipulated in tender conditions for collection rights over human hair was rejected because the petitioner had ated with full knowledge of the term, accepted the bid conditions, and continued collections without objection. The Court treated the dispute as contractual in nature and found no basis for interference under Article 226 where the petitioner sought to resile from an agreed condition. The claim for exemption under Notification No. 2/2017-Central Tax (Rate) also failed, as the respondent maintained that the arrangement was for collection rights rather than an outright sale, weakening the exemption plea. The GST demand and exemption challenge were therefore rejected.

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Issues: Whether the petitioner could, in writ jurisdiction, challenge the levy of GST at 18% stipulated in the tender conditions for collection of human hair and claim exemption under Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017.

Analysis: The petitioner participated in the auction with full knowledge of the tender condition requiring payment of GST at 18%, accepted the bid terms, and continued collections for a substantial period without objection. The dispute arose from a contractual stipulation incorporated into the tender and involved the petitioner's own acceptance of the condition. In such circumstances, the Court held that the petitioner could not be permitted to turn around and challenge the agreed GST condition in writ proceedings. The stand of the respondent-Department that the matter was contractual in nature and not fit for interference under Article 226 of the Constitution of India was found to have force. The respondent-Devasthanam also maintained that there was no outright sale and that the arrangement was one for collection rights, which further weakened the petitioner's claim to exemption.

Conclusion: The challenge to the GST demand and the plea for exemption were rejected, and the writ petition failed.

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