Bipson Surgical (India) Pvt Ltd VS State Of Gujarat

Case Title

Bipson Surgical (India) Pvt Ltd VS State Of Gujarat

Court

Gujarat High Court

Honorable Judges

Justice M.R. SHAH

Justice A.Y. KOGJE

Citation

2018 (03) GSTPanacea 13 HC Gujarat

R/SCA Nos. 16765, 16773 And 17991 Of 2017

Judgement Date

27-March-2018

supplying goods to the Gujarat Medical Services Corporation Ltd. (GMSCL). They have filed petitions under Article 226 of the Constitution of India seeking the quashing of certain decisions/orders made by GMSCL. These decisions/orders include an email reference related to the introduction of 12% GST on goods supplied by the petitioners to GMSCL and specific agenda items from the minutes of a GMSCL board meeting.

Ms. Sangita Vishen, Assistant Government Pleader, waived service of notice of the Rule on behalf of respondent No.1, while Shri Mitul Shelat, Advocate, waived service of notice of the Rule on behalf of respondent No.2.

Given the commonality in the legal and factual issues raised in these petitions, they are being disposed of by a common judgment and order. Special Civil Application No.18765/2017 serves as the lead matter, and its facts are being used for convenience.

The petitioners, who are business entities supplying goods to GMSCL, seek relief from the court regarding the imposition of GST and certain decisions taken by GMSCL. These decisions have directly affected the petitioners’ business operations and financial interests.

The court is tasked with considering the legality and validity of the impugned decisions/orders made by GMSCL and determining whether they should be quashed or set aside. The petitioners’ arguments likely center on issues of procedural fairness, the proper exercise of statutory authority, and the potential economic impact on their business.

The waiver of notice by the respondents indicates their acknowledgment of the legal proceedings and their willingness to proceed without formal notification. This procedural step streamlines the process and allows the court to focus on the substantive issues at hand.

Special Civil Application No.18765/2017 serves as the lead matter in a group of petitions addressed in a common judgment and order. Ms. Sangita Vishen, a learned Assistant Government Pleader, and Shri Mitul Shelat, a learned Advocate, waive the service of notice of Rule on behalf of respondent No.1 and respondent No.2, respectively. The petitioners, under Article 226 of the Constitution of India, seek writs, directions, and orders to annul and invalidate decisions/orders made by respondent No.2, Gujarat Medical Services Corporation Ltd. (GMSCL), specifically referencing Email Ref.No.GMSCL/DRUG/2017­18 and the introduction of 12% GST on goods supplied to GMSCL. Additionally, petitioners seek to quash Agenda Item No.22/15 and Agenda Item No.22/25 of the Minutes of 22nd Meeting of the Board of Directors of GMSCL dated 23.08.2017.

The lead matter involves petitioners engaged in the manufacture and distribution of surgical dressing items such as bandages and gauze. GMSCL, as a procuring agency of the Government of Gujarat, solicits tenders from suppliers for various medical items, which the petitioners have won contracts for. The contracts pertain to supplying specific items with corresponding item codes. For instance, Item Code 4185, which involves Disposable Delivery Kit (ETO Sterilized), was awarded to the petitioners via an acceptance letter dated 07.10.2015. Similarly, Item Code 4024, involving Cotton Crepe Bandage, was awarded based on a tender invitation dated 10.11.2015. These contracts were initially valid for specific periods but were extended accordingly.

The petitioner’s contention revolves around challenging decisions made by GMSCL regarding the mentioned contracts, especially concerning taxation changes and specific agenda items from board meetings. Through the lead matter and its related petitions, the court will address common questions of law and fact, aiming to provide a comprehensive resolution to the issues raised by the petitioners.

Special Civil Application No.18765/2017 serves as the lead matter in a series of petitions concerning the Gujarat Medical Services Corporation Ltd. (GMSCL). The petitioners, engaged in manufacturing and distributing surgical dressing items, seek relief through Article 226 of the Constitution of India, aiming to quash and overturn decisions made by the GMSCL.

The petitioners highlight an issue regarding the imposition of a 12% Goods and Services Tax (GST) on goods supplied to the GMSCL, prompting them to challenge the decision and seek a change in the tax structure. Additionally, they aim to annul specific decisions made by the GMSCL, particularly Agenda Item No.22/15 and Agenda Item No.22/25 of the Board of Directors’ meeting minutes dated 23.08.2017.

The petitioners’ grievances stem from their involvement in various tender processes initiated by the GMSCL for the supply of medical items to government hospitals across Gujarat. They were awarded contracts for supplying items categorized under different item codes. These contracts were secured through competitive bidding processes, wherein the petitioners submitted technical and commercial bids, subsequently being awarded contracts for supplying items like Disposable Delivery Kits, Cotton Crepe Bandages, and Bandage Cloth, among others.

The timeline of events reveals a series of tender invitations, bid submissions, and contract awards, each associated with specific item codes and corresponding rate contracts. For instance, the petitioners secured contracts for supplying Disposable Delivery Kits (Item Code: 4185), Cotton Crepe Bandages (Item Codes: 4009 and 4010), and Bandage Cloth and Rolled Bandages (Item Codes: 4006 and 4024).

The petitioners assert that the decisions and actions of the GMSCL, particularly concerning the imposition of GST and the awarding of contracts, have adversely affected their business interests. They contend that such decisions are legally flawed and seek judicial intervention to rectify the situation.

Ms. Sangita Vishen, Assistant Government Pleader, representing respondent No.1, and Shri Mitul Shelat, Advocate, representing respondent No.2, waive the service of notice of the rule on behalf of their respective clients, indicating their acknowledgment and participation in the legal proceedings.

Given the commonality of legal questions and factual issues across the petitions, the court opts for a consolidated approach, disposing of the cases through a single judgment and order. Thus, the court is poised to address the substantive legal arguments presented by the petitioners, considering the implications of the decisions made by the GMSCL on their contractual rights and obligations.

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