Facts of the Case

M/s. Bhavadharani Builders filed W.P.(MD) No. 1902 of 2023 before the Madurai Bench of the Madras High Court, seeking a writ of mandamus directing the Executive Officer, Mallankinaru Town Panchayat, to pay GST at 18% (with effect from 01.01.2022) on civil works supplied to the Town Panchayat, in light of the petitioner's representation dated 10.12.2022. The first respondent had included the GST component in payments at 12%, whereas the petitioner claimed it should be 18%.

Issues Involved

  1. Whether the High Court could, by a writ of mandamus, direct a government body to pay GST at a specific rate claimed by the petitioner.
  2. Whether the applicable GST rate for the civil works in question was 12% or 18%.

Petitioner's Arguments

  • The petitioner claimed that GST at 18%, applicable from 01.01.2022, ought to have been paid on the civil works supplied to the Town Panchayat, rather than the 12% rate that was actually paid.

Respondent's Arguments

  • The Town Panchayat and other respondents had applied and paid GST at 12% on the works in question, as reflected in their payments to the petitioner.

Court Order / Findings

  • Justice C.V. Karthikeyan held that the applicable GST rate for the works in question is determined by the Central Government through periodic notifications, and this is not something a court can decide or direct in place of the statutory framework.
  • The Court held that the duty is cast upon the Town Panchayat to adhere to the applicable rules and notifications, and the Court could never direct the respondent to apply a particular GST rate merely because the petitioner sought it.
  • The writ petition was dismissed, with the Court noting that the applicable GST rate would be provided only by the first respondent (i.e., through proper application of the law), not by judicial direction.
  • No costs were awarded.

Important Clarification

This ruling is a useful reminder that courts will not step into the shoes of the tax administration to fix or direct a particular GST rate for a transaction — that determination flows from the applicable Central Government notifications under the GST law, and any dispute about the correct rate must be resolved by the taxing authority or through the appropriate GST dispute mechanism, not by a writ of mandamus against the paying government body.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — GST rate notifications issued by the Central Government, which alone determine the applicable rate on a given supply.
  • Article 226 of the Constitution of India (limits of mandamus jurisdiction).

Decision – In Favour of

Decided against the petitioner (Bhavadharani Builders); the writ petition was dismissed, with the Court holding it cannot direct payment of GST at a particular rate — that is determined by Central Government notification.

Case Details

Court: Madurai Bench of the Madras High Court
Case No.: W.P.(MD) No. 1902 of 2023
Coram: Justice C.V. Karthikeyan
Date: 14.06.2023
Parties: M/s. Bhavadharani Builders vs. The Executive Officer, Mallankinaru Town Panchayat & Others

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