Facts of the Case

The petitioner, Farooque Constructions, Alappuzha, a Government Contractor represented by its Managing Partner, undertook the work of improvement of the Kalavoor Kattur Beach Road in Alappuzha. The petitioner's case was that, due to the respondents' omission in considering a revised estimate for the project, execution of the work was delayed. The petitioner accordingly requested the respondents — the Public Works Department, its Executive Engineer, the Project Management Unit of the Kerala Road Fund Board, and the Kerala Infrastructure Investment Fund Board (KIIFB) — to relieve it from completing the balance work and to disburse the amount due for the completed work, along with the applicable GST component. The petitioner had submitted a representation dated 01.04.2021 (Ext.P1) to this effect, which remained undecided. As the request went unaddressed, the petitioner filed this writ petition seeking a direction to refund and release the GST amount, disburse dues as per the revised estimate, and compel the third and fourth respondents to decide Ext.P1 within a time frame.

Issues Involved

  1. Whether the petitioner's representation seeking refund and release of the GST amount and disbursal of dues for completed work should be directed to be decided within a fixed time frame.

Petitioner's Arguments

  • Delay in the work was caused by the respondents' failure to consider the petitioner's revised estimate, and the petitioner sought to be relieved from completing the balance work.
  • The petitioner sought disbursal of the amount due for the completed work, including the GST component, and a decision on its pending representation dated 01.04.2021 (Ext.P1).

Respondent's Arguments

  • The Standing Counsel for the third respondent entered appearance and controverted all the material contentions raised by the petitioner in the writ petition.
  • The Standing Counsel, however, submitted that since Ext.P1 was pending before the third respondent, it could be considered in accordance with law.

Court Order/Findings

  • Given the third respondent's submission that Ext.P1 was pending and could be considered in accordance with law, the Court did not go into the disputed merits of the petitioner's claim for GST refund and release of dues.
  • The writ petition was disposed of by directing the third respondent to consider Ext.P1 representation and take a decision thereon within a period of four weeks.

Important Clarification

  • Where a Government contractor's grievance regarding release of the GST component on completed work is already the subject of a pending representation, and the department itself offers to decide it, the writ court will ordinarily dispose of the petition with a time-bound direction to decide the representation, rather than adjudicate the underlying entitlement itself.

Sections Involved

  • Goods and Services Tax law, generally — insofar as it concerns disbursal of the GST component payable to a Government contractor on completed works contract value; no specific statutory provision is discussed in this brief disposal order.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee — no finding was recorded on the entitlement to refund/release of the GST amount; the third respondent was merely directed to decide the pending representation within four weeks.

Related Case Laws

No related case laws are available on this site at present for cross-reference on this specific point.

Case Details

  • Court: High Court of Kerala at Ernakulam
  • Case No.: WP(C) No. 14219 of 2021
  • Coram: Hon'ble Mr. Justice N. Nagaresh
  • Date of Order: 31.03.2022

Link to Download the Order

Download the full order

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