Facts of the Case

Petitioner, M/s Span Constructions, a works contractor, had carried out contract work for the 3rd respondent (Superintending Engineer, PWD Buildings) and completed the same on 26.03.2018. GST came to be levied with effect from 01.07.2017, midway through execution of the contract that had been awarded under the earlier tax regime, and the petitioner claimed that the resultant tax burden borne by it was liable to be compensated. Seeking reimbursement of this tax liability, the petitioner filed Ext.P4 representation dated 04.12.2021 before the respondent authorities, and confined its relief in the writ petition, WP(C) No. 29817 of 2021, to a direction for time-bound disposal of that representation.

Issues Involved

  1. Whether a works contractor who bore an additional GST burden on a contract awarded before, and executed across, the introduction of GST from 01.07.2017 could seek reimbursement from the contracting government department.
  2. Whether the writ court should direct time-bound consideration of the petitioner's pending representation for such reimbursement.

Petitioner's Arguments

  • GST was introduced from 01.07.2017 midway through execution of the works contract, casting an additional and unanticipated tax burden on the petitioner that was not factored into the original contract price.
  • The tax burden borne on account of GST ought to be reimbursed/compensated by the contracting department.
  • The petitioner had already filed Ext.P4 representation dated 04.12.2021 and confined its relief to a direction for its expeditious, time-bound disposal, rather than seeking an adjudication of entitlement by the writ court itself.

Respondent's Arguments

  • No specific contra-submissions are recorded in the judgment; the State, represented by the Government Pleader, did not resist a direction for time-bound consideration of the pending representation.

Court Order/Findings

  • The Court did not go into the merits of the reimbursement claim itself, confining the relief granted to what the petitioner had actually sought.
  • The 4th respondent was directed to consider Ext.P4 representation as expeditiously as possible, and in any event within three months from receipt of the judgment, after granting the petitioner an opportunity of hearing.
  • If the petitioner is found eligible for payment as claimed, the amount is to be disbursed without further delay.
  • The writ petition was disposed of with no order as to costs.

Important Clarification

  • Works contractors whose GST liability increased on contracts spanning the transition to the GST regime from 01.07.2017 can seek reimbursement through a representation to the contracting government department, and the writ court will ordinarily direct time-bound consideration rather than adjudicate entitlement itself.
  • A writ petition confined to seeking disposal of a pending representation, rather than a substantive direction on entitlement, is more likely to secure a swift, time-bound direction from the court.

Sections Involved

  • Section 142, CGST Act, 2017 – transitional provisions dealing with the tax treatment of supplies and contracts spanning the pre-GST and GST regimes.
  • Article 226, Constitution of India – writ jurisdiction invoked to secure a time-bound direction for disposal of a pending representation.

Decision – In Favour of

Disposed of with directions, in part in favour of the Assessee/contractor – a time-bound direction for consideration of the reimbursement claim and disbursement if found eligible, without any finding on entitlement on merits.

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. 29817 of 2021
  • Coram: Hon'ble Mr. Justice Bechu Kurian Thomas
  • Date of Judgment: 15 March 2022
  • Parties: M/s Span Constructions vs State of Kerala & Ors.

Link to Download the Order

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