Facts of the Case

Triveni Engicons Private Limited filed W.P.(T) No. 3529 of 2023 before the High Court of Jharkhand at Ranchi against the State of Jharkhand, the Water Resources Department and the Commercial Taxes Department, seeking to quash letters dated 06.12.2022, 29.03.2023 and 10.06.2023 by which the Executive Engineer, Waterways Division, Chaibasa, declined the petitioner's claim for reimbursement of additional GST arising from a change in the rate of tax. The petitioner had been awarded the work of "Renovation and Lining work of Main Canal (ERM Work) of Torlow Reservoir Scheme and Torlow Weir Scheme" under an agreement dated 02.08.2018, and after commencement of the work, the GST rate on the work contract increased from 12% to 18% with effect from 18.07.2022 under Notification No. 3/2022-Central Tax (Rate) dated 13.07.2022, saddling the petitioner with an additional 6% GST liability it sought to have reimbursed.

Issues Involved

  1. Whether the petitioner was entitled to reimbursement of the additional 6% GST liability arising from the mid-contract rate increase.
  2. Whether the appropriate course was for the Court to decide entitlement itself or direct the department to consider a fresh representation, following the approach in earlier similarly-situated cases.

Petitioner's Arguments

  • The petitioner argued the increase in GST rate from 12% to 18% during the contract period, under a Central Government notification, entitled it to reimbursement of the additional 6% burden, which was not embedded in the original contract price.
  • Counsel relied on an earlier batch of writ applications (based on W.P.(T) No. 2108 of 2018 and analogous cases) which had directed similarly-situated assessees to file fresh representations, with the department directed to dispose of them.

Respondent's Arguments

  • The order does not record specific opposing submissions from the State respondents beyond the general procedural posture of directing consideration via representation, consistent with the earlier batch of cases.

Court Order / Findings

  • The Division Bench (Justice Rongon Mukhopadhyay and Justice Deepak Roshan) noted the limited prayer made by the petitioner, in line with the earlier batch of cases.
  • The writ application was disposed of with a direction to the petitioner to file a fresh representation before the Executive Engineer (respondent No. 4) for reimbursement of the additional 6% GST liability due to the rate change.
  • The respondent was directed to consider and dispose of the representation by a speaking, reasoned order within eight weeks of receipt.

Important Clarification

This order does not decide whether Triveni Engicons was actually entitled to reimbursement of the additional GST — it only ensures the department must consider a fresh, properly-framed representation and give reasons. Contractors facing similar mid-contract GST rate changes should file a clear representation supported by the relevant rate-change notification and contract documents, rather than assume a court will decide entitlement directly.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — rate notified under Notification No. 3/2022-Central Tax (Rate) dated 13.07.2022, increasing the rate on the relevant works contract from 12% to 18%.

Decision – In Favour of

Disposed of without a decision on merits; the petitioner was directed to file a fresh representation, to be decided by the department within eight weeks by a reasoned order.

Case Details

Court: High Court of Jharkhand at Ranchi
Case No.: W.P.(T) No. 3529 of 2023
Coram: Justice Rongon Mukhopadhyay and Justice Deepak Roshan
Date: 24.08.2023
Parties: Triveni Engicons Private Limited vs. State of Jharkhand & Others

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