MAS Constructions VS Hubballi Dharwad Smart

The petitioner in this case has filed a plea seeking the issuance of a writ to compel the respondent to reimburse a GST amount totaling Rs. 42,01,582. Additionally, the petitioner is requesting directions for the payment of interest on tax dues at a rate of 18% per annum, in accordance with Section 50 of the CGST Act, 2017.

The petitioner argues that the respondent authority had initiated a tender process, and subsequently awarded the contract to the petitioner. It is contended that the rates finalized as per the bid documents included a sales tax component at the rate of 5%. Importantly, it is highlighted that both the tender and work orders were issued to the petitioner after the implementation of the Goods and Services Act, which is pertinent in determining the applicability of GST.

Furthermore, the petitioner asserts that they have fulfilled their obligation by making necessary payments for the applicable GST as mandated by statutory provisions. However, they argue that the respondent has failed to reimburse the GST amount due to them.

The crux of the petitioner’s argument revolves around the timing of the contract awards vis-à-vis the implementation of the GST Act and the subsequent obligation for payment and reimbursement of GST amounts. They maintain that since the contracts were awarded post-GST implementation, the respondent is obligated to reimburse the GST amount as per the statutory provisions.

In seeking relief, the petitioner not only demands the reimbursement of the GST amount but also requests payment of interest on the outstanding tax dues, citing the statutory interest rate specified under Section 50 of the CGST Act.

Overall, the petitioner contends that they have fulfilled their obligations under the law and contractual terms and seeks judicial intervention to compel the respondent to fulfill their corresponding obligations by reimbursing the GST amount owed and paying the accrued interest on the outstanding tax dues.

The petitioner in this case has petitioned for a writ to be issued to the respondent, demanding reimbursement of a GST amount totaling Rs. 42,01,582. Additionally, they seek directions for the payment of interest on tax dues at a rate of 18% per annum, as per the statutory interest rate outlined in Section 50 of the CGST Act, 2017.

The petitioner’s argument centers around a bidding process initiated by the respondent authority, which resulted in the petitioner being awarded a contract. They contend that the rates finalized as per the bid documents included a sales tax component of 5%. Notably, the tender and subsequent work orders were allotted to the petitioner after the implementation of the Goods and Services Act (GST Act).

Having paid the applicable GST, the petitioner claims to have made representations on two occasions – on August 1, 2019, and February 27, 2020 – requesting the release of the GST amount. The respondent authority acknowledged these requests and sought clarification from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) via a letter dated December 6, 2019. Specifically, the clarification sought was regarding whether GST needed to be reimbursed to the contractor, considering that only 5% VAT was provided for in the contract.

In summary, the petitioner seeks reimbursement of GST and interest on tax dues, arguing that they have fulfilled their statutory obligations and are entitled to the amount stipulated. The respondent’s response hinges on the interpretation of contractual provisions in light of GST implementation.