Facts of the Case

M/s Gupta Constructions Company, a contractor engaged in bridge construction work for the Public Works Department (PWD), Government of Chhattisgarh (funded partly through the National Rural Infrastructure Development Agency), filed this writ petition alleging inaction on the part of the respondents in releasing the GST amount payable to it in respect of a Work Order it had executed. The petitioner relied on a document (Annexure P/7) dated 03.03.2023 showing that Respondent No. 4 (Executive Engineer, PWD, Kanker Division) had already processed and found the petitioner eligible for refund/release of GST amounting to Rs. 1,79,04,898.02, but the amount had not actually been released.

Issues Involved

  1. Whether the respondents could be directed to release the GST refund/reimbursement amount that had already been processed and found admissible in the petitioner's favour.

Petitioner's Arguments

  • The claim for release of the GST amount had already been verified and found eligible by the Executive Engineer (Respondent No. 4) as per Annexure P/7, yet payment had not been made.

Respondent's Arguments

  • Subject to further enquiry and verification, appropriate steps would be taken in accordance with law regarding the petitioner's claim for release/refund of the GST amount.

Court Order / Findings

  • Given that the claim had already been processed and found eligible, the Court directed Respondent Nos. 2 and 3 to ensure that the petitioner's claim for release/refund of the GST amount against the executed Work Order is processed and released at the earliest, within 90 days.
  • The petitioner was directed to produce necessary documents before Respondent Nos. 2 and 3 to establish proof of payment made, in support of the claim.
  • The writ petition was disposed of on this basis.

Important Clarification

This order is a genuine GST-refund matter, but it is a compliance direction rather than a substantive ruling — the Court did not decide any disputed question of GST refund eligibility; it simply enforced release of an amount the department's own officer had already verified as due. Contractors facing similar delays in GST reimbursement on government works contracts may find this a useful precedent for seeking a time-bound direction from courts once departmental verification is already complete.

Sections Involved

  • Central Goods and Services Tax Act, 2017 (GST payable/reimbursable on works contract execution)
  • Article 226 of the Constitution of India — writ jurisdiction

Decision – In Favour of

Decided in favour of the petitioner (Gupta Constructions Company) — the State PWD authorities were directed to process and release the admitted GST refund of Rs. 1,79,04,898.02 within 90 days.

Case Details

  • Court: High Court of Chhattisgarh at Bilaspur
  • Case No.: WPC No. 2005 of 2023
  • Coram: Justice P. Sam Koshy
  • Date of Order: 1 May 2023

Link to Download the Order

Click here to view/download the full order

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