Facts of the Case

A.P. Nirman Limited, a civil contractor, filed this writ petition against the State of Chhattisgarh's Water Resources Department, challenging the department's inaction in refunding the additional tax burden the petitioner claimed to have suffered on account of the introduction of the GST regime, in the context of a civil-works agreement with the State Government. The petitioner relied on an earlier order of the same High Court in Manish Pipes Pvt. Ltd. vs State of Chhattisgarh (WPC 460/2020), where similar relief had reportedly been granted.

Issues Involved

  1. Whether the petitioner was entitled to refund/reimbursement of the additional tax burden suffered as a result of the switch to the GST regime, under the terms of its civil-works agreement with the State.
  2. Whether the respondent authorities were obligated to decide the petitioner's pending representation on this issue.

Petitioner's Arguments

  • Contended that under the rules, regulations and agreement conditions governing the contract, the respondent authorities were required to refund the additional tax burden suffered due to introduction of the new GST regime, and that despite repeated representations, no decision had been taken; relied on the precedent in Manish Pipes Pvt. Ltd. (WPC 460/2020) for similar relief.

Respondent's Arguments

  • State counsel did not object to the limited relief sought by the petitioner (a decision on the pending representation).

Court Order / Findings

  • Noting that State counsel had no objection to the limited relief sought, disposed of the writ petition with a direction to the respondent (Chief Engineer, Mahanadi Project) to take a decision on the petitioner's representation for refund of the additional tax burden.
  • Directed that the decision be taken preferably within 60 days, considering the applicable rules, regulations, guidelines and general conditions of the agreement.

Important Clarification

The Court did not decide whether the petitioner is actually entitled to reimbursement of the additional GST-related tax burden — it only directed the department to decide the pending representation within 60 days, applying the relevant rules and agreement conditions. Whether the outcome will favour the petitioner, and to what extent, remains to be seen from that departmental decision.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — referenced as the source of the 'new tax regime' causing the alleged additional burden
  • General Conditions of Contract governing the civil works agreement (state government works contract terms, referenced but not analysed in detail)

Decision – In Favour of

No merits decided — the writ petition was disposed of with a direction to the Water Resources Department to decide the petitioner's pending representation on the GST-related additional tax burden within 60 days.

Case Details

High Court of Chhattisgarh, Bilaspur; WPT No. 244 of 2023; Coram: Hon'ble Shri Justice Rakesh Mohan Pandey; Date of Order: 19.10.2023.

Link to Download the Order

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