TaxTMI 
TaxTMI 
2026 (6) TMI 1000
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....ve filed the present appeal impugning the judgment dated 11.04.2023 passed by the learned Single Judge of this Court in W.P.No.10163/2020 [impugned order]. The respondent [writ petitioner] had filed the said writ petition, inter alia, praying as under: "(a) Declare that demand of interest on the sub-contractor is illegal under Section 50(1) of the GST Act alleging that there is delay in paying tax and filing returns for 2017-18, 2018-19 and 2019-20 when the W.P.No.26523/2019 filed by the contractor is pending for consideration before this Hon'ble Court and interim order of stay is still in force; and consequently (b) Issue a writ in the nature of Certiorari or such other appropriate writ or order to quash the notice dated ....
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....ractor under a works contract dated 24.06.2017 entered into with the main contractor [the Employer], at the Schedule of Rates [SR] then prevailing under the VAT regime. 4. The writ petitioner claimed that since the rates quoted were on the basis of the Schedule of Rates prevailing prior to 01.07.2017, the same did not include the element of GST - Central GST, SGST and IGST - payable under the relevant GST Acts. With the Goods and Services Tax Acts coming into force on 01.07.2017, the works contract came to be subjected to GST at the rate of 18% (for the period from 01.07.2017 to 21.08.2017) and at 12% thereafter. Thus there was an increase in the writ petitioner's tax liability. In the meanwhile, the writ petitioner filed its returns for....
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....elines:- (a) Calculate the works executed pre-GST (prior to 01.07.2017) under KVAT regime and payments received by the Petitioners. (b) The payments received by the Petitioners pre-GST for such of the works executed before 01.07.2017 are to be assessed under KVAT tax regime - either under COT or VAT scheme as applicable. (c) Calculate the balance works to be completed or completed after 01.07.2017, in the original contract. (d) Derive the rate of materials, KVAT items required or used to complete the balance works. (e) Deduct the "KVAT" amount from those materials and the service tax, if applicable. (f) Add the applicable "GST" on those items. (g) Input Credit on the materials i....
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..../Respondents are directed to consider and dispose of the same in the light of the aforesaid directions / guidelines as expeditiously as possible and at any rate within a period of 8 weeks from the date of submission of the representations. (v) In view of the interim orders passed by this Court in the present petitions, such of the petitioners who had not filed their GST returns during the period after 01.07.2017 are permitted to file their returns / amended returns, pursuant to the calculation of the differential tax as per procedure above under GST regime, without insisting on interest or penalty or limitation. (vi) The GST authorities are also directed not to take precipitative action against the Petitioners for a period....
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....the writ petitioner would be entitled to reimbursement of the incremental tax paid or payable by it on account of the levy of GST is strictly a matter between the contracting parties - writ petitioner and the main contractor - with whom it had entered into the contract. The contract between the said parties or the contract between the main contractor and KNNC would not alter the statutory scheme for the levy of GST. Thus, the liability of the writ petitioner to pay Goods and Services Tax (whether under the Central Goods and Services Tax Act, 2017, the State Goods and Services Tax Act, 2017 or the Integrated Goods and Services Tax Act, 2017) is required to be determined strictly in accordance with the provisions of the relevant statute. The ....