GST neutralisation claim upheld; reimbursement ordered where payment was verified despite final bill and no-claim certificate

Petitioner paid GST on contract works and produced verification from the tax authority; respondents cannot deny reimbursement solely because a final bill and no-claim certificate exist. The supplementary agreement submitted by the petitioner carried requisite signatures on his part but was not executed by the department, and this failure by respondents does not defeat the claim. Identical administrative acceptances of GST neutralisation in related projects were relied on. Outcome: petitioner entitled to GST reimbursement and department directed to accept the neutralisation claim and reimburse accordingly.

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Issues: Whether the petitioner is entitled to reimbursement of GST paid (GST neutralization) notwithstanding that the final bill has been passed and a no-claim certificate has been submitted by the contractor.

Analysis: The petitioner was awarded a works contract which was completed and for which a completion certificate and final bill were issued. It is undisputed and verified by the GST office that the petitioner actually deposited the GST. The respondents denied reimbursement solely on the ground that Clause 11 of the Joint Procedural Order (JPO) bars claims after passing of the final bill and submission of a no-claim certificate, and that the supplementary agreement was not executed by the respondents. The record shows the petitioner submitted the supplementary agreement duly signed by it and documentary evidence of tax payment; the supplementary agreement was not executed by the respondents despite being presented. The Accounts Department's denial was based on procedural technicality without disputing the fact of payment or pointing to a legal bar that precludes reimbursement where the tax payment is verified. Comparable claims in identical factual circumstances were accepted by other railway divisions, demonstrating that acceptance after completion and issuance of certificate is permissible where payment is established and supporting documents are furnished.

Conclusion: The petitioner is entitled to reimbursement of the GST amount paid; the respondents must accept the GST neutralization claim and reimburse the petitioner as per entitlement.

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