Facts of the Case

M/s B.M.S Projects, the same Jagdalpur-based partnership firm involved in a companion matter (WPC No. 3316 of 2023), filed this separate writ petition concerning a different contract package (CG 01-244) for construction and maintenance of rural roads awarded by the Chhattisgarh Rural Road Development Agency and allied respondents. As with the companion case, the contract predated the GST regime, and the petitioner sought reimbursement of the GST/service tax (12%, later 18%) it was required to pay after the GST Act, 2017 came into force, relying on the contract's 'New Tax' reimbursement clause.

Issues Involved

  1. Whether the petitioner was entitled to reimbursement of GST paid on a pre-GST works contract for a different PMGSY package.

Petitioner's Arguments

  • The contract predated GST and did not include a service tax component in the quoted price.
  • The contract's 'New Tax' clause obliged the Executive Engineer to reimburse tax introduced after execution, on submission of proof.
  • The petitioner has paid 12% (later 18%) GST and is entitled to reimbursement under the terms of the contract.

Respondent's Arguments

  • The State submitted that if proof of the additional tax liability is produced, the claim would be scrutinised and processed per applicable policy.

Court Order / Findings

  • As in the companion matter, the Court disposed of the petition by directing the petitioner to move a fresh, documented claim before the authorities.
  • The respondent authorities were directed to process and decide the fresh claim within an outer limit of 90 days from receipt.

Important Clarification

This is a procedural disposal mirroring the companion case for a different contract package — it does not decide the reimbursement question on merits. It confirms that the Court's practice in these PMGSY/GST-reimbursement disputes is to set an administrative timeline rather than adjudicate entitlement directly.

Sections Involved

  • Central Goods and Services Tax Act, 2017 (post-2017 tax liability on works contracts)

Decision – In Favour of

Disposed of with procedural relief only — a 90-day timeline for the authorities to decide a fresh, documented claim — without a ruling on the reimbursement entitlement.

Case Details

  • Court: High Court of Chhattisgarh, Bilaspur
  • Case No.: WPC No. 3320 of 2023
  • Coram: Hon'ble Shri Justice Parth Prateem Sahu
  • Date of Order: 25.07.2023

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.