Calcutta High Court stays any coercive action until final decision in matter of arbitrary action of State for non-payment of GST on contracts executed prior GST regime

Calcutta High Court

   

Calcutta High Court: Md. Nizamuddin, J. took cognizance of a writ petition which was filed for the relief by way of direction upon the respondents authority concerned to bear the additional tax liability for execution of subsisting Government contracts either awarded in the pre-GST regime or in the post GST regime without updating the Schedule of Rates (SOR) incorporating the applicable GST while preparing Bill of Quantities (BOQ) for inviting the bids and also to neutralize the impact of unforeseen additional tax burden on Government contracts since the introduction of GST w.e.f. 01-07-2017 for ongoing contract awarded before the said date and to update the State SOR incorporating applicable GST in lieu of inapplicable West Bengal VAT henceforth.

After hearing the parties, the Court gave liberty to the petitioners to file appropriate representation before the Additional Chief Secretary, Finance Department, Government of West Bengal within four weeks from date. Additional Chief Secretary, Finance Department was directed to take the final decision within four months from the date of receipt of such representation after consulting with all other relevant departments. Any coercive action was barred against the petitioners until the final decision.

It was further expected of the Additional Chief Secretary to pass a reasoned and speaking order on merit and after considering all the judgments of different High Courts upon which petitioners intend to rely.

[Saptarshi v. Deputy Commr. of State Tax, WPA 3994 OF 2022, decided on 17-08-2022]


Advocates who appeared in this case :

Ankit Kanodia, Himangshu Kr. Ray, Megha Agarwal, Advocates, for the petitioner;

Tapan Bhanja, Advocates, for the Union of India in item No. 2;

Anirban Ray, T.M. Siddiqui, D. Ghosh, Advocates, for the State.


*Suchita Shukla, Editorial Assistant has reported this brief.

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