TaxTMI 
TaxTMI 
2026 (9) TMI 1268
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....to certain works executed by it, the tax due under the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act) / State Goods and Services Tax Act, 2017 (SGST Act), are not being disbursed by the awarder of the contract - the 2nd respondent herein. 2. The short facts necessary for the disposal of the writ petition are as follows; The 2nd respondent had awarded certain contracts with respect to the construction of SE's office, Design Centre and quality control lab at Kamaleswaram. The work was originally entrusted to a third party. However, the third-party contractor failed to complete the work. Hence, the work awarded to the third party was cancelled at his risk and cost. It is subsequently, pursuant to a fresh tender, th....
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....rates "inclusive of all taxes, viz. Income Tax, Sales Tax, Purchase Tax, Central Excise, etc." It is with reference to the afore, the respondents contend that the rate quoted by the petitioner is inclusive of the tax component - even with respect to the provisions of the CGST Act and, hence, the petitioner would not be entitled for the GST component. 6. At first blush, the afore contention appears to be attractive. However, on a deeper analysis, I am of the opinion that the afore contention does not require to be accepted for more than one reason. 7. Firstly, this Court notices that, even on the face of the PWD manual at Ext.P6, it is not in dispute that, with respect to the work in question, the Bill of Quantities (BoQ) has been prov....
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....axes" came to be incorporated in the BoQ. When such a mistake occurred in the tender document, the contractor can only give a rate without taxes failing which it is possible that his tender may be rejected. The fact that BoQ (tender) was erroneously issued is further evident from the fact that while accepting the tender, in Ext.P9, the word "without taxes" had been deleted. The conditions of the notice inviting tender by itself does not amount to a contract. A contract comes into existence only when the price quoted by the contractor is accepted by the department. In the document which provides for the price bid, when there is clear instruction that the price should be without taxes, the bidder cannot be blamed for having not incorporated t....
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....herefore totally illegal and arbitrary." 9. In the light of the afore, I am of the opinion that the learned counsel for the petitioner is justified in contending that even on the face of Ext.P6 PWD manual, insofar as, admittedly, the petitioner furnished Ext.P5 BoQ without including the tax component, the claim requires to be accepted. 10. Secondly, this Court further notices that, even Ext.P5 BoQ had only visualised a contractor to include the tax payable under the "sales tax regime". In the case at hand, it is not in dispute that what is being claimed by the petitioner is not the tax under the sales tax regime, but under the GST scheme. This issue has been considered by this Court in the judgment reported as Ganga Constructions v. A....