TaxTMI 
TaxTMI 
2021 (6) TMI 102
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....Tamil Nadu Water Supply and Drainage Board for laying Under Ground Sewerage works for Karaikudi Municipality, Sivagangai District. An agreement was entered into between them on 25.01.2016. It is seen from the contract that quotation given by the petitioner was inclusive of TNVAT and Excise Duty components. 3. As per Clause 46 of the Contract, deduction at source towards sales tax shall be made at 2% for civil works contract and at 5% for all other works contract. With effect from 01.07.2017, GST Regime came into force. The distinction between civil works and other works became irrelevant since all the works contract for construction activities came to be taxed at 12%. Since the tax regime had undergone a change, it became necessary to re....
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....e break up of tax is Central Excise Duty of Rs. 1 lakh and VAT or CGST of Rs. 1 lakh, the corresponding subsumed tax as per his break up of taxes is Rs. 2 lakh and after negotiation, the contracted value was reduced to Rs. 48 lakh, the subsumed tax shall be taken as Rs. 2 lakh x 48/50 = Rs. 1.92 lakh. b. In case, the break up of taxes was not obtained or furnished in the bid document, the supplier may be asked to furnish break up of the taxes within the contracted amount, giving details and explanations and based on this estimate of total subsumed tax shall be arrived. For instance, if for the contracted amount of Rs. 48 lakh in the example above, the supplier states that the Central Excise Duty is Rs. 1 lakh and VAT or CGST is Rs.....
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....;s case will fall under paragraph No.10(c). The stand of the petitioner is that the case will fall under paragraph No.10(a). The petitioner had given a representation in this regard calling upon the respondent Board to rework the price component of the contract in terms of paragraph No.10(a). Since the petitioner's request was not considered, the present writ petition came to be filed. 7. The respondents have filed a detailed counter affidavit. The learned Standing counsel took me through its contents. The learned Standing counsel would also point out that after GST was introduced, a revised agreement was in fact entered into between the parties and the petitioner having signed the same with eyes wide upon, cannot now seek to wriggle....
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....for each item after deducting the tax component. Since the policy that is manifest from G.O.Ms.No.296 of 2017 dated 09.10.2017 is that this additional tax burden should be taken care of only by the purchaser, the reworking has to be done only in terms of paragraph No.10(a) of the said Government Order and Paragraph No.10(c) of the said Government Order will be applicable only if along with the tender notification, the TWAD Board has also enclosed their schedule of rates. In the case on hand, no such schedule of rates was enclosed. Hence, I sustain the contention of the petitioner's counsel that the quotation in the instant case was on itemwise basis. 10. The petitioner's counsel draws my attention to the order dated 01.08.2019 pa....
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.... the funds. Of course, the learned Standing counsel would strongly deny this allegation. 13. There may not have been any physical coercion or compulsion. I can however easily visualise the situation in which the contractor was placed. The petitioner was obviously faced with liquidity crunch and therefore, he signed the revised agreement. But then, we are concerned with the rights of the parties. The question is how the agreement should be reworked. The following order was passed in W.P.(MD)Nos. 21196 and 21198 of 2019:- "21. Therefore, the parties will now stand governed by paragraph 10(a) and paragraph 12 of aforesaid G.O.Ms. No.296, Finance (Salaries) Department, dated 09.10.2017. 22. The exercise of quantification qu....