Petition Challenges Additional Tax Liabilities on Government Contracts; Decision Expected in July 2024.

The HC entertained a writ petition challenging additional tax liabilities on government contracts pre and post-GST regime, due to Tribunal unavailability. The petitioner was permitted to submit a representation to the Additional Chief Secretary, who must decide within four months. No coercive recovery actions will occur if the petitioner deposits an additional 20% of the disputed tax. Respondents must file affidavits within four weeks, and the petitioner has two weeks to reply. The matter is scheduled for a final hearing in July 2024. Both parties must prepare concise written arguments, ensuring adherence to due process and relevant judgments.

---

---

Issues:
1. Relief sought for additional tax liability on Government contracts pre and post GST regime.
2. Seeking direction to neutralize the impact of unforeseen additional tax burden.
3. Challenge against the impugned order dated 30th January, 2024 under the WBGST Act.
4. Entertaining the writ petition due to unavailability of the Tribunal.
5. Filing of affidavits by respondents and petitioner.
6. No coercive steps for recovery if petitioner deposits further 20% of disputed tax amount.
7. Listing the matter for final hearing in July 2024.

Analysis:
1. The writ petition was filed seeking relief for the additional tax liability on Government contracts awarded before and after the introduction of GST. The petitioner requested a direction for the authorities to bear the tax liability without updating the Schedule of Rates (SOR) to incorporate applicable GST. The petitioner also sought to neutralize the impact of unforeseen tax burdens on ongoing contracts and update the State SOR with applicable GST going forward.

2. The court granted liberty to the petitioner to submit a representation to the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks. The Additional Chief Secretary was directed to make a decision within four months after consulting relevant departments and considering the petitioner's submissions. No coercive action was to be taken against the petitioner until a final decision was made.

3. The writ petition also challenged an order passed by the appellate authority under the WBGST Act. Since the Tribunal was unavailable, the court decided to entertain the petition. The court emphasized that the issues raised required affidavits from the respondents to be adjudicated properly.

4. The court directed the respondents to file an affidavit-in-opposition within four weeks, with the petitioner given two weeks to respond. No coercive steps for recovery were to be taken if the petitioner deposited an additional 20% of the disputed tax amount within ten days.

5. The matter was scheduled for final hearing in July 2024, with both parties instructed to prepare short written notes of arguments for the hearing. The court emphasized the importance of following due process and considering all relevant judgments in making decisions related to the representation filed by the petitioner.

---