TaxTMI 
TaxTMI 
2022 (6) TMI 1415
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....liefs: i) Call for the records leading to Ext.P9 and issue a writ of certiorari for quashing the same, ii) Issue a writ of mandamus or any other appropriate writ order or direction, declaring that the terms and conditions contained in Ext.P1 shall govern the contract for the work titled NABARD RIDF XXII Infrastructural works in Kurinjikkal Construction of bridge across Puzhakkal Thodu in Kurinjikkal Puthurkkara in Thrissur District and iii) Issue a writ of mandamus or any other appropriate writ order or direction, directing the 2nd and 3rd respondent to pay the GST component against all the bills raised by the petitioner. 2. The petitioner is a Class-A contractor undertaking Government works across State of Ker....
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....d a separate GST amount in the bid but it was always included in the estimate and all the other bidders quoted their bid by including the GST component also. If the other bidders had not included the GST in their quotes their bids would have been the lowest than that of the petitioner's. It was also contended that as per G.O.(P) No. 2/2018/PWD, taxpayer must pay GST directly to the tax system and also that the Government does not provide Goods and Service Tax beyond the contract amount. 4. The learned single judge, referring to clauses set out in Ext.P1, more particularly Clause 3.3.3 and also BoQ (Bill of Quantities), came to the conclusion that Ext.P9 is contrary to Notice Inviting Tender and it was declared that the terms and cond....
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....eparation of the estimate, tax component is added to the rate in every item included in the work. Therefore, he prayed that the learned single judge has failed to appreciate Clause 3.3.3 in the right perspective and allowed the writ petition. Clause 3.3.3 specifically states that: "the rate quoted shall also include all statutory tax and other mandatory remittances payable by the contractor as per the existing tax systems and Government orders which are applicable to the contract except Goods and Service Tax". The petitioner while quoting the bid has specifically excluded the component of GST from the quote in view of the said clause. 6. The BoQ format appended to Notice Inviting Tender produced as Ext.P3 makes it clear that ....
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....thers [(2019) 14 SCC 81], it was held that, it should not be the endeavour of courts to give their own interpretation to contracts, more specifically tender terms, at the behest of a 3rd party competing for the tender, rather than what is propounded by the party framing the tender. It was further held that the author of the document is the best person to understand and appreciate its requirements. 9. In Bharat Coking Coal Limited and Others v. Amr Dev Prabha and Others [(2020) 16 SCC 759], the Apex Court went on to hold that in contractual matters, judicial review is very limited and can be invoked only in cases there is public interest and that there is no arbitrariness, illegality discrimination. 10. Coming to the facts of this case....
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.... three clauses together, it can be seen that all taxes and other mandatory remittance stated in Clauses 3.3.5 and 3.3.6 relate to all statutory taxes and mandatory remittance except Goods and Service Tax. It can only mean that Goods and Service Taxes having been specifically exempted from adding in the rates quoted, the same cannot be made inclusive in the subsequent clauses namely, 3.3.5 and 3.3.6. GST being a tax to be suffered by the ultimate beneficiary, the Corporation for whom the work is done by the contractor has to remit the same. 12. Heard counsel on either side. 13. The arguments on both sides are stated and upon due appreciation of the challenge to the judgment under appeal, we hasten to add that the same contentions, howe....
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....judge was right in declaring that the GST component was not to be included as per clause 3.3.3 of Ext.P1 and the direction to pay the GST component by respondents 2 and 3 is in tune with the clauses of Ext.P1 and hence there are no grounds to interfere with the judgment of the learned single judge, and hence the writ appeal is dismissed. 15. Adv. A. Kumar referring to the instructions received from the respondent/corporation submits that Contempt Case stands posted today for framing charges against the officers of respondent/corporation and he requests reasonable time for complying with the directions incorporated in the judgment under appeal. He requests 8 to 12 weeks time for complying with the directions. 16. The learned counsel fo....