Facts of the Case

This is another government works-payment enforcement order, not a GST law ruling. The petitioner, a Class-II contractor, had executed fifteen separate irrigation-related works (agreements dated between 2017 and 2018) for the Water Resources Department, including a 'Neeru-Chettu' work under Agreement No. 1061/18-19, and claimed a total of Rs. 31,59,703, including 12% GST, remained unpaid despite completion of all works and recording of measurements in the Measurement Books.

Issues Involved

  1. Whether the respondents' continued non-payment of bills for admittedly completed irrigation works was justified.

Petitioner's Arguments

  • All fifteen works listed in the agreements had been executed in full, with measurements duly recorded, yet the bills lawfully due, totalling Rs. 31,59,703 with 12% GST, were not released, causing serious prejudice and financial loss.

Respondent's Arguments

  • The Executive Engineer's written instructions, placed before the Court, confirmed the Neeru-Chettu work under Agreement No. 1061/18-19 had been completed in all respects and that final bill submission was in progress, with payment to follow once budget release orders (BRO) were issued by the Government through the head office.

Court Order / Findings

  • Given the undisputed position that the works were executed and bills were payable, the Court found the respondents' failure to release payment unjust and untenable, while allowing some further time in light of the budget-release process.
  • The Court directed payment of the amount due, after statutory deductions, within three months, and clarified that the petitioner could separately claim any interest component before the appropriate forum if so advised.

Important Clarification

No GST law issue was decided — the 12% GST was simply part of the total contract price for works-contract services, payable alongside the base amount once the government released the necessary budget. The order is a routine payment-enforcement mandamus, not a tax ruling.

Sections Involved

  • Article 226 of the Constitution of India — writ of mandamus for release of withheld contract payments.
  • GST on works contracts under the Central Goods and Services Tax Act, 2017 was referenced only as a component of the contract price (12%).

Decision – In Favour of

Decided in favour of the petitioner-contractor — the writ petition was disposed of with a direction to pay the GST-inclusive contract dues of Rs. 31,59,703 within three months.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 10184 of 2023
Coram: Hon'ble Justice Ninala Jayasurya
Date of Order: 26 July 2023

Link to Download the Order

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