Reena Engineers and Contractors Pvt. Ltd. Versus Kerala Water Authoirty
GST
2018 (7) TMI 1824 – KERLA HIGH COURT – 2018 (19) G. S. T. L. 16 (Ker.)
KERLA HIGH COURT – HC
Dated:- 7-6-2018
WP(C). No. 13630 of 2018
GST
DEVAN RAMACHANDRAN, J.
Petitioner: BY ADVS.SRI.SANTHOSH MATHEW SRI.ARUN THOMAS SRI.JENNIS STEPHEN SRI.ALPHIN ANTONY SRI.VIJAY V. PAUL SMT.KARTHIKA MARIA SMT.MARIA ROY
RESPONDENT: R1 TO R3 BY SRI.P.BENJAMIN PAUL, SC, KERALA WATER AUTHORITY
JUDGMENT
These two writ petitions are filed by the same petitioner, which is stated to be a Private Limited Company incorporated under the provisions of the Companies Act, 1956. The petitioner says that they are registered Class-A contractor who have been undertaking various works at the requisition of the Kerala Water Authority and such other Public and Private Limited undertakings.
2. The controversy in these cases relates to certain specified works already undertaken by the petitioner and the work orders have b
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me 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 petitioner asserts that, as per clause 8.15 of the Notice Inviting Tender (NIT), the Water Authority had agreed that any excess in taxes and duties within contract period will be borne by the said Authority.
4. The pleadings and the materials available on record show that, in fact, these assertions are virtually admitted by the Kerala Water Authority and as is clear from a circular issued by the Water Authority, dated 10.08.2017, a copy of which has been placed on record as Ext.P5 in both these writ petitions, the Water Authority clarified that “the difference between GST paid and the sum of all the taxes subsumed under GST applicable at the time of bidding shall be absorbed by Kerala Water Authority on production of payme
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ying 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 permission from the Head Office, is completely untenable, since Ext.P5 circular has been issued by the Head Office, which is to say, the Managing Director of the Kerala Water Authority.
8. The learned standing counsel appearing for the respondents answers the submission of the petitioner by saying that though the payments are to be made by the Deputy Chief Engineer, Central Region of the Kerala Water Authority, he is not authorised to do so without the sanction and permission of the Head office, with respect to the amounts relating to the GST.
According to him, this is the reason why the bills of the petitioner were forwarded to the Head Office and that until and unless directions are received from the said office,
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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.
11. In the result, I order these writ petitions directing the first respondent – Managing Director of the Kerala Water Authority to immediately take up Exts.P6 to P8 representations of the petitioner produced in W.P.(C) No.13676 of 2018 and Exts.P6 to P9 produced in W.P.(C) No.13630 of 2018 and to issue orders on the same, adverting specifically to the terms of circular No.GST/002/17, dated 10.08.2018, issued by the said Authority, as expeditiously as possible but not later than one month from the date of receipt of a copy of this judgment.
If the first respondent finds that the amounts are due to the petitioner, in terms of the directions in the afore-mentioned circular, then the said Authority shall ensur
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