Facts of the Case

Triveni Engicons Private Ltd. had been awarded a road-construction works contract in 2018 by the Road Construction Department (RCD), Government of Jharkhand, for building an approach to a Road-Over-Bridge in East Singhbhum district under an agreement dated 11.10.2018.

The petitioner's case is that before GST was introduced, its tax liability (excise duty, central sales tax, purchase tax/VAT) was embedded in the contract price. After GST came into force, some bills relating to work executed pre-GST attracted GST at 12%, later revised to 18% by Notification No.3/2022-Central Tax (Rate) dated 13.07.2022. The petitioner sought reimbursement of this additional GST burden by way of a representation dated 27.03.2023, which the RCD did not act upon.

This is not a case in which the High Court examined or ruled on any question of GST law, rate classification, or notification validity — it is a contractual/administrative dispute about who bears an additional tax cost under a government works contract, brought to the writ court only because the department had failed to respond to the petitioner's representation.

Issues Involved

  1. Whether the Road Construction Department could be directed, in writ jurisdiction, to consider and decide the petitioner's pending representation for GST-cost reimbursement.

Petitioner's Arguments

  • The GST rate applicable to the contracted works increased from 12% to 18% by a notification issued after the contract was signed, and this additional burden — arising from a change in law during subsistence of the contract — ought to be reimbursed by the awarding department.
  • A representation dated 27.03.2023 seeking such reimbursement had been filed but was not acted upon despite the passage of time.

Respondent's Arguments

  • No substantive defence on the reimbursement claim is recorded; the State's counsel appears to have addressed the Court primarily on the limited prayer for disposal of the representation.

Court Order / Findings

  • The Court did not examine the merits of the GST-reimbursement claim, the applicability of the rate-change notification, or any contractual clause on tax pass-through.
  • In view of the limited prayer, the writ petition was disposed of with liberty to the petitioner to file a fresh, detailed representation within three weeks.
  • The Executive Engineer/RCD was directed to consider such representation and pass a reasoned, speaking order within four weeks of its submission.

Important Clarification

This order does not decide whether a mid-contract GST rate increase must be absorbed by a government department — it simply keeps that question alive by directing the department to decide the contractor's representation on its own merits, with reasons, within a fixed timeframe. Contractors facing similar rate-change cost disputes should not read this as any precedent on the reimbursement question itself.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — rate notification referenced (Notification No.3/2022-Central Tax (Rate) dated 13.07.2022)
  • Constitution of India, 1950 — Article 226 (writ jurisdiction)

Decision – In Favour of

Disposed of without a decision on merits — the writ petition was closed with a direction to the Road Construction Department to consider the petitioner's fresh representation on GST-cost reimbursement and pass a reasoned order within four weeks.

Case Details

  • Court: High Court of Jharkhand at Ranchi
  • Case No.: W.P.(T) No.3303 of 2023
  • Coram: Hon'ble Mr. Justice Rongon Mukhopadhyay and Hon'ble Mr. Justice Deepak Roshan
  • Order No.: 02, Dated: 4th July, 2023

Link to Download the Order

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