TaxTMI 
TaxTMI 
2024 (3) TMI 583
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....the Earnest Money Deposit (EMD) made by the petitioner. 3. Learned counsel appearing for the petitioner contends that initially the petitioner had participated in the tender and had turned out successful. Thereafter an acceptance order was issued on January 16, 2023 indicating that the GST payable was @ 12%. Subsequently, however, by a notification of the Government dated July 13, 2022, the rate was enhanced from 12% to 18%. 4. As a consequence, the petitioner wrote to the respondent authorities seeking to incorporate the said enhanced 6% in the rates which were quoted by the petitioner. 5. In such context, the petitioner also rely on a Memorandum, bearing No. 4691-F(Y) dated November 22, 2022 issued by the Finance Department, Government....
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....ndustrial Development and Investment Corporation Vs. Diamond and Gem Development Corporation Limited reported at (2000) 6 SCC 293. In the said judgement, the Supreme Court inter alia observed that a party cannot claim anything more than what is covered by the terms of the contract for the reason that contract is a transaction between two parties and has been entered into with open eyes and understanding the nature of contract. 10. Learned counsel also places reliance on the judgement reported at (2019) 4 SCC 401 where the Supreme Court reiterated the principle that tender terms fall in the realm of contract and cannot be altered by judicial review unless palpable arbitrariness, discrimination, unreasonableness or malice are established. Th....
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....f seven days, which come within the purview of the principle incorporated Section 18 of the Limitation Act, 1963, amounting to acknowledgement on the part of the authorities regarding the delay on the part of the petitioner on such score. By such conduct, the respondents waived their rights of cancellation under the clause. 15. Since the respondents insisted upon performance of the terms of the contract even after the expiry of seven days, it cannot be said that termination would be an automatic fallout of non-execution of the agreement within seven days. 16. Insofar as Clause 21 is concerned, the same provides for disqualification of a contractor in cases if the bidder withdraws his tender before its acceptance or refuses to work within ....
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....rticipated in the tender before the enhancement of GST from 12% to 18%, the provisions of the Memorandum dated November 22, 2022 were squarely applicable in the present case. Thus, the respondent authorities ought to have honoured the commitment of the State issued by way of a Memorandum dated November 22, 2022 by enhancing the GST from 12% to 18% and/or permit the petitioner to refurnish the quotations by incorporating such 6% enhancement, which was the precise request of the petitioner vide its communication dated April 17, 2023 (Annexure P4 at page 70 of the writ petition). 22. It is well-settled that State actions have to be scrutinized on a higher standard of fairness than the action of private employers. 23. Even in the judgement ci....
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....oting that the same would preclude the petitioner's very challenge to the respondents' action in not giving effect to the Memorandum dated November 22, 2022 in respect of the petitioner. 28. In such view of the matter, the respondents were duty-bound to permit the petitioner to enhance the GST rates by 6 per cent in terms of their own Memorandum dated November 22, 2022 read in conjunction with Notification No. 03/22-Central Tax (Rate) dated July 13, 2022 whereby the enhancement of GST rates took effect, coupled with WBGST Rate Notification No. 1393-FT dated August 23, 2022 whereby the State of West Bengal adopted the GST enhancement. 29. Thus, the impugned action of the respondents in refusing such request of the petitioner and consequent....