Facts of the Case

This was a contempt application filed by Bhartiya Samvida Outsourcing Karmchari Sangh alleging non-compliance with an interim order of the Allahabad High Court dated 04.01.2023 passed in Writ-A No. 15679 of 2022. That underlying writ petition had challenged an order dated 08.09.2022 fixing liability of service charge and GST on the honorarium paid to Consultants of Division and District under the Swachh Bharat Mission (Gramin) programme. The writ Court had earlier stayed the deduction of service charge and GST from the honorarium, pending final disposal of the writ petition, and directed the State to file a counter affidavit. In the contempt proceeding, the State filed an affidavit stating that the order was being complied with from May 2023, while the applicant contended that compliance was due from January 2023 itself.

Issues Involved

  1. Whether the respondent (Mission Director) had wilfully disobeyed the interim stay order dated 04.01.2023.
  2. Whether the delay in compliance (May 2023 versus January 2023) amounted to contempt.

Petitioner's Arguments

  • The interim order restraining deduction of service charge and GST from honorarium was not complied with from the date it was passed in January 2023.
  • The delay itself constituted disobedience warranting contempt action.

Respondent's Arguments

  • An affidavit was filed on behalf of the State stating that the writ Court's order was being complied with from May 2023 onward, evidenced by a subsequent order dated 18.05.2023.

Court Order / Findings

  • The Court found that substantial compliance had been made by the opposite party through the order dated 18.05.2023.
  • It noted that the underlying writ petition itself was still pending before the writ Court.
  • The contempt application was dismissed and the contempt notice discharged — the Court did not rule on whether GST/service charge could lawfully be deducted from the honorarium; that question remains open in the still-pending writ petition.

Important Clarification

This order is only about contempt — it finds that the authority eventually complied with an earlier stay and discharges the notice. It is not a ruling on the underlying tax question of whether GST or service charge can be deducted from honorarium paid to Mission consultants. Anyone tracking that issue should follow the disposal of the original writ petition (Writ-A No. 15679 of 2022), not this contempt order.

Sections Involved

  • Contempt of Courts Act, 1971 (contempt jurisdiction)
  • Central Goods and Services Tax Act, 2017 (GST on service charge/honorarium — underlying dispute, not adjudicated here)

Decision – In Favour of

Disposed of in favour of the respondent authority on the contempt question only — the substantive GST/service-charge dispute remains pending and undecided.

Case Details

  • Court: High Court of Judicature at Allahabad
  • Case No.: Contempt Application (Civil) No. 1322 of 2023 (arising from Writ-A No. 15679 of 2022)
  • Neutral Citation: 2023:AHC:152881
  • Coram: Hon'ble Rohit Ranjan Agarwal, J.
  • Date of Order: 31.07.2023

Link to Download the Order

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