Facts of the Case

M/s Kushwaha Construction Company, a works contractor engaged in road-construction projects executed through the Chhattisgarh Gramin Sadak Yojana Vikas Abhikaran (CGRRDA) under the Pradhan Mantri Gram Sadak Yojana (PMGSY), filed WPC No. 1228 of 2022 along with thirteen connected writ petitions before the High Court of Chhattisgarh, Bilaspur. The petitions were directed against the State of Chhattisgarh, the Executive Engineer-cum-Member Secretary, Project Implementation Unit No. 1, CGRRDA, the Chief Executive Officer of CGRRDA, and the National Rural Infrastructure Development Agency (NRIDA), Ministry of Rural Development. The petitioner had earlier submitted representations to the respondent authorities seeking reimbursement of the GST amount incurred on the works executed under these projects, but the representations remained undecided, prompting the present batch of petitions.

Issues Involved

  1. Whether the petitioner's pending representations for reimbursement of GST paid on PMGSY road works executed through CGRRDA warranted a direction for time-bound consideration by the respondent authorities.
  2. Whether the respondent authorities were obliged to decide such representations having regard to the CGRRDA circular dated 13.09.2019 governing GST reimbursement to contractors.

Petitioner's Arguments

  • Counsel for the petitioner submitted that in all fourteen connected cases, the petitioner had already filed representations before the respondent authorities praying for reimbursement of the GST amount relatable to the works contracts, and that relief in this regard was sought in the petitions.

Respondent's Arguments

  • Learned State counsel, appearing for Respondents No. 1 to 3, submitted that the matters may be disposed of with appropriate directions.
  • Counsel for the Union of India, appearing for NRIDA, stated that it had no objection if the petitions were disposed of.

Court Order / Findings

  • The Court, after considering the submissions of all parties, disposed of all fourteen connected writ petitions at the motion stage itself, without a contested hearing on merits.
  • The petitioner was granted liberty to file a fresh representation, along with a copy of the order, within 15 days.
  • On such representation being filed, Respondents No. 3 (CEO, CGRRDA) and No. 4 (NRIDA) were directed to consider it and take a decision at the earliest, taking cognizance of the circular of Respondent No. 3 dated 13.09.2019.
  • The Court further directed that compliance with the order be made at the earliest, within a period of 60 days.

Important Clarification

  • Where a works contractor's claim for GST reimbursement on government infrastructure projects (such as PMGSY roads executed through CGRRDA) is governed by an administrative circular of the executing agency, the High Court's practical approach is to direct the agency to decide a fresh, properly documented representation within a fixed timeline, rather than adjudicate entitlement on merits in writ jurisdiction.
  • Such disposals do not amount to a finding that GST reimbursement is payable; they only compel the authority to apply its own circular and decide the claim within the stipulated period.

Sections Involved

  • Articles 226 and 227 of the Constitution of India – invoked for the writ jurisdiction of the High Court.
  • CGRRDA Circular dated 13.09.2019 – the administrative circular governing reimbursement of GST to works contractors under PMGSY projects executed through CGRRDA, which the respondent authorities were directed to apply while deciding the fresh representation.

Decision – In Favour of

Disposed of with directions; in substance in favour of the Assessee/Petitioner, as the Court directed the executing agencies to decide the GST reimbursement representation within a fixed 60-day timeline, without recording any adverse finding on entitlement.

Related Case Laws

  • See our earlier case notes on writ petitions seeking time-bound disposal of GST refund and reimbursement representations by government contractors.
  • See our case notes on High Court directions to statutory/government agencies to decide GST-related representations within a fixed period.

Case Details

  • Court: High Court of Chhattisgarh, Bilaspur
  • Case No.: WPC No. 1228 of 2022 (with connected WPC Nos. 1230, 1231, 1232, 1233, 1234, 1235, 1236, 1240, 1241, 1257, 1261, 1281 and 1283 of 2022)
  • Parties: M/s Kushwaha Construction Company vs State of Chhattisgarh & Ors.
  • Coram: Hon'ble Shri Justice Rajendra Chandra Singh Samant
  • Date of Order: 11.03.2022

Link to Download the Order

You can view/download the full text of the order here: https://mytaxexpert.co.in/uploads/1787067680_4521compressed.pdf

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