Government Contractor's Representation on GST Liability Due to Regime Change Must Be Considered

Government Contractor’s Representation on GST Liability Due to Regime Change Must Be Considered

Summary in Key Points:

Issue: A government contractor faced increased GST liability due to the transition from the pre-GST regime to the GST regime. They submitted a representation based on internal government communication acknowledging the deviation in tax liability.
Decision: The High Court directed the government authority to address the contractor’s representation, taking into account the internal communication and the contractor’s disclosures regarding the increased tax burden.
Impact: The court recognized the potential hardship faced by contractors due to the change in the tax regime and emphasized the need for the government to consider their representations fairly.

HIGH COURT OF ORISSA

Satyabrata Jena

State of Odisha

Arindam Sinha and M.S. Sahoo, JJ.

W.P.(C) No.32770 of 2024

JANUARY 6, 2025

P.C. Nayak, Adv. for the Petitioner. Sanjib Kumar Swain, AGA and S. Das, ASC for the Respondent.

ORDER

1. Mr. Nayak, learned advocate appears on behalf of petitioner and submits, his client is a contractor. He draws attention to annexure-1 being internal communication dated 19^th February, 2024 between Chief Construction Engineer and the Executive Engineer. He submits, thereby was approval of deviation statement (post GST) for deviation in the pre GST regime, on work executed and the amount mentioned, payable to his client. He seeks issuance of mandamus.

2. Mr. Swain, learned advocate appears on behalf of State and points out that petitioner made representation dated 8^th December, 2024, disclosed at annexure-4. He submits, the representation will be duly dealt with. Mr. S. Das, learned advocate, Additional Standing Counsel appears on behalf of revenue.

3. Mr. Pattanaik in reply submits, in event the writ petition is disposed of with direction to consider the representation, there be also direction to take into account said internal communication, which makes it clear that his client is entitled to the payment.

4. Opposite party no.6 is directed to consider and deal with representation dated 8^th December, 2024 made by petitioner, to the office. Petitioner will obtain and serve certified copy of this order along with copy of the representation dated 8^th December, 2024 on said respondent by 20^th January, 2025. Omission to so communicate will automatically vacate the direction made. On the communication made, decision taken upon consideration of the representation be made and communicated to petitioner, within three weeks thereafter. Said opposite party must bear in mind the internal communication dated 19^th February, 2024.

5. The writ petition is disposed of.