2018 (7) TMI 1824 – KERLA HIGH COURT – 2018 (19) G. S. T. L. 16 (Ker.) – Quantum of GST – specified works already undertaken by the petitioner – the concerned officer is awaiting directions from the Head Office – Circular No.GST/002/17, dated 10.08.2018 – Held that:- I cannot immediately accede to the stand taken by the respondents because, as is clear from Ext.P5 circular, the Head Office, which is to mean the Managing Director, has already taken a decision to compensate the contractors to the extent of the GST paid by them on account of the fact that, at the time when the contract was entered into, the GST regime had not been implemented – I, therefore, fail to understand why the Deputy Chief Engineer should take a stand in the counter affidavit that he is still awaiting directions from the Head Office, when the circular makes it clear that all such payments are to be made to the contractors – petition disposed off. – WP(C).No. 13630 of 2018 Dated:- 7-6-2018 – DEVAN RAMACHANDRAN, J
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nly issue, as per the petitioner, between them and the Water Authority is as to the manner in which the amount of tax under the GST regime is to be reckoned and adjusted as per the contract. 3. The petitioner says that, as is clear from Ext.P1, work orders, it was issued before the GST regime was brought into effect in the State of Kerala. They say that GST was implemented in the State of Kerala only with effect from 01.07.2017. The petitioner submits that the time when the notice inviting tender was published and tender process was undertaken, GST had not been implemented and hence, that the petitioner was allowed to enter into a contract, under which, they were obliged to pay Value Added Tax at the rate of 4.04%, Income Tax at the rate of 2.266% and Labour Workers' Welfare Fund of 1%. According to them, when the work was being executed by them, the GST regime was implemented, as per which, the contractors were obligated to pay tax at the rate of 18% instead of 4.04% VAT. The peti
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al representations before the Water Authority, copies of which have been placed on record as Exts.P6 to P8 in W.P.(C) No.13676 of 2018 and as Exts.P6 to P9 in W.P.(C) No.13630 of 2018. They have filed these writ petitions praying that the Water Authority be directed to honour their bill and to pay them the GST already deposited by them. 6. I have heard Sri.Santhosh Mathew, the learned counsel appearing for the petitioner in both cases and the learned standing counsel appearing for the respondents. 7. Sri.Santhosh Mathew opens his submission in line with the facts narrated above and according to him, the only reason, as is discernible from the counter affidavit filed by the respondents in these cases, for not complying with the stipulations in Ext.P5 circular, is that the concerned officer is awaiting directions from the Head Office. He points out that there is no other reason stated in the counter affidavit and according to him, this stand of the respondents, that they are awaiting per
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dents because, as is clear from Ext.P5 circular, the Head Office, which is to mean the Managing Director, has already taken a decision to compensate the contractors to the extent of the GST paid by them on account of the fact that, at the time when the contract was entered into, the GST regime had not been implemented. I, therefore, fail to understand why the Deputy Chief Engineer should take a stand in the counter affidavit that he is still awaiting directions from the Head Office, when the circular makes it clear that all such payments are to be made to the contractors. 10. In any event of the matter, so long as the respondents do not have a case that the petitioner has not paid the GST amount or that he has not completed the works in question satisfactorily, it would not be reasonable on their part to keep these claims pending ad infinitum. I am certainly of the view that a decision on this regard has to be taken by the competent Authority imperatively and without any further delay.
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