Enhanced GST differential payable where liability is admitted; alternative contractual remedy did not bar writ relief.

Enhanced GST liability from 12% to 18% was treated as payable for work executed during the relevant period, and the Court found no justification to deny the differential 6% amount where the State GST Department had also accepted the liability. The petitioner was therefore entitled to payment of the GST differential, with interest applicable if payment was not made within the stipulated time. The Court also rejected the objection based on an alternative contractual dispute-resolution remedy, holding that no disputed questions of fact arose and that the writ remedy was not barred on that ground. Relief was granted accordingly.

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Issues: (i) Whether the petitioner was entitled to payment of the difference in GST at the enhanced rate for the period from 01.01.2022 to 30.09.2022. (ii) Whether the petitioner could be relegated to the contractual dispute-resolution mechanism on the ground of availability of an alternative remedy.

Issue (i): Whether the petitioner was entitled to payment of the difference in GST at the enhanced rate for the period from 01.01.2022 to 30.09.2022.

Analysis: The enhanced GST rate from 12% to 18% from 01.01.2022 was applied to the work executed for the respondents, and the respondent entity had already ed the liability to pay the additional 6% amount. The State GST Department also accepted that the enhanced rate was payable by the respondent entity. In these circumstances, the Court found no justification to deny the petitioner the differential tax amount.

Conclusion: The petitioner was held entitled to payment of the GST differential at 6% for the relevant period, together with the stipulated consequence of interest in case of non-payment within time.

Issue (ii): Whether the petitioner could be relegated to the contractual dispute-resolution mechanism on the ground of availability of an alternative remedy.

Analysis: The Court found that no disputed questions of fact arose for adjudication and, therefore, the contractual dispute-resolution forum was not an efficacious bar to the writ remedy.

Conclusion: The objection based on alternative remedy was rejected, and the writ petition was entertained and decided on merits.

Final Conclusion: Relief was granted to the petitioner by directing payment of the differential GST amount, and the writ petition was disposed of accordingly.

Ratio Decidendi: Where the enhanced GST liability is admitted and no disputed questions of fact survive, the writ court may grant relief notwithstanding an arbitration or contractual dispute-resolution clause.

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