Government Contractor Entitled to Re-Examination of GST Reimbursement Claim; Disbursement Ordered if Eligible

Government Contractor Entitled to Re-Examination of GST Reimbursement Claim; Disbursement Ordered if Eligible

Issue: Whether a government contractor is entitled to a direction to release pending amounts for GST reimbursement when the work is completed, certified, and recommended for reimbursement.

Facts:

• The assessee, a government contractor, sought a direction to the respondents to release pending amounts for GST reimbursement for completed works.
• The work was completed, and a completion certificate was issued on March 18, 2019.
• The Executive Engineer had verified and recommended the GST reimbursement.

Decision:

• The court directed the respondent to re-examine the assessee’s claim.
• If the assessee is found to be eligible for GST reimbursement, the amount should be disbursed within eight weeks.

Key Takeaways:

• This case reinforces the principle that government contractors are entitled to reimbursement of GST incurred due to regime changes, especially when work is completed and certified.
• The decision emphasizes the importance of administrative authorities properly examining and processing legitimate claims for GST reimbursement.
• The court’s directive for a re-examination and subsequent disbursement within a specific timeframe ensures that the assessee’s claim is addressed promptly and efficiently.
• This ruling provides assurance to government contractors that their reimbursement claims will be considered and disbursed if they meet the necessary criteria.