TaxTMI 
TaxTMI 
2022 (10) TMI 1240
X X X X Extracts X X X X
X X X X Extracts X X X X
....991 of 2022, W.P (T) No. 3992 of 2022, W.P (T) No. 3993 of 2022, W.P (T) No. 3994 of 2022, W.P (T) No. 3995 of 2022, W.P (T) No. 3996 of 2022, W.P.(T) No. 3997 of 2022 M/s Sri Sai Krishna Constructions, Royal Infraconstru Limited, M/s Harvin Construction Pvt. Ltd, M/s Spica Projects and Infrastructures Pvt. Ltd, M/s Bhardwaj Construction Company (P) Ltd., M/s Sew Infrastructure Ltd, M/s Vijay Kant Pandey, M/s Pankaj Kumar Singh, M/s Sidhartha Construction, Larsen & Toubro Limited, NNB Engineers Private Limited, Tata Steel Utilities and Infrastructure Services Ltd. (known as Jamshedpur Utilities & Services Company Ltd.), M/s Singh Electricals and Constructions, Classic Engicon Pvt. Ltd Versus The State of Jharkhand, Chief Secretary, Govt. of Jharkhand, Ranchi, The Principal Secretary, Water Resource Dept., Ranchi, The Engineer-in-chief, Water Resource Dept., Ranchi, The Chief Engineer, Water Resource Dept., Ranchi, The Superintending Engineer, Water Ways Circle, Gumla, The Executive Engineer, Water Ways Division, Gumla, The Secretary, Commercial Taxes Dept., Govt. of Jharkhand, Ranchi, The Commissioner of Commercial Taxes, Govt. of Jharkhand, Ranchi, The Dy. Commissioner of Comme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ism laid down by the State to ensure proper implementation of the Goods and Services Tax regime on ongoing works contract w.e.f. 1st July 2017. Petitioners contend that works contract in their individual cases contained clauses for computation of tax under the VAT regime over the taxable value of the contracts. However, under the GST regime not only the rate of tax has been increased, but is leviable on the taxable value of the works contract as a whole. Petitioners have been compelled to pay the differential tax burden without proper reimbursement. No uniform guidelines have been framed by the State of Jharkhand in this regard. Petitioners contend that guidelines in this regard have been laid down by other State Governments such as the Government of Telangana, Government of Andhra Pradesh, Railways as well as other public sector undertakings. Various orders have also been passed by the different High Courts such as the High Court of Madras and the High Court of Orissa. Earlier a direction was passed by this Court in W.P.(T) No.5045 of 2018 in the case of M/s Bhardwaj Construction Company (P) Ltd. Vs. State of Jharkhand upon the respondent State to take a decision on this ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....epartments, but the issue is common i.e. reimbursement of differential tax on GST paid by the petitioners in subsisting contracts or contracts executed even after 01.07.2017 upon implementation of GST regime. The order dated 14.12.2021 refers to the SOP framed by the MoRTH through letter dated 19.12.2018 by which a mechanism was framed and also letter dated 14.07.2021 issued by the Secretary, Commercial Taxes Department, 4. Government of Jharkhand bearing letter no. 1421. However, it appears that the problem lies in its implementation only. It also shows that different departments need to implement the SOP in uniform manner so that grievances of the petitioners concerning different departments are redressed on uniform principles. It appears that lack of coordination amongst different departments of the State may be one of the reasons for not giving concerted response to the order dated 14.12.2021. We therefore, feel that the matter be brought to the notice of the Chief Secretary, Jharkhand so that the issue at hand may be addressed through a nodal department and guidelines for its implementation within a timeframe may be laid down. 3. Learned A.A.G-II Mr. Sachin Kumar and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... hereunder: COMMERCIAL TAXES DEPARTMENT NOTIFICATION 26th August, 2022 Sub: Standard Operating Procedure (SOP)/Directive for postGST payments of pending bills related to work orders issued during pre-GST period. S.O. No. 33 Dated 26 August, 2022-The matter relates to the Works Contract awarded by the State Government departments/ local authorities in the pre GST period and payments and execution of those Works Contract Services (partly or wholly) is to be made in the post GST period i.e. from 1.07.2017. The Goods and Services Tax (GST) has come into force w.e.f 1st July 2017 by subsuming various indirect taxes such as Central excise duty, Service tax VAT, CST, Entry tax, etc. Subsequent to the enactment of GST Act w.e.f. 01.07.2017, different work departments of State Government have sought clarifications on modalities of treatment of pending bills of different contractors where in the contract was awarded in pre- GST regime, i.e., VAT regime and the works has completed partly/wholly after the implementation of GST. Hon'ble Jharkhand High Court has directed the Government of Jharkhand to issue guidelines on this matter in its order dated 16-0....