Writ Petition No. 35531 of 2024 · The High Court
Case Details
- 1 - NC: 2025:KHC:12856 WP No. 35531 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 35531 OF 2024 (GM-TEN) BETWEEN:
Facts
M/S. SWEET HOME CONSTRUCTIONS REPRESENTED BY THE PROPRIETOR OF THE FIRM SRI.SHIVANAND R. SHETTY. AGED ABOUT 55 YEARS HAVING ITS PLACE OF BUSINESS AT: NO.8, GROUND FLOOR, DATTATREYA COMPLEX. SAI MANDIR ROAD, KARWAR – 581 306, KARNATAKA.
Legal Reasoning
co-ordinate bench of this Court in W.P.No.9721 of 2019 and connected cases disposed on 11-04-2023. The coordinate bench considering the entire spectrum of law has passed the following order:
Arguments
(BY SRI RAVIKIRAN P. PAWAR, ADVOCATE) AND: 1. THE GOVERNMENT OF KARNATAKA REPRESENTED BY IT'S ADDITIONAL CHIEF SECRETARY DEPARTMENT OF FINANCE, 2ND FLOOR, VIDHANA SOUDHA, DR.AMBEDKAR VEEDHI BENGALURU – 560 001. 2. THE EXECUTIVE DIRECTOR KARNATAKA RESIDENTIAL EDUCATION INSTITUTION SOCIETY (KREIS) CUNNINGHAM ROAD Digitally signed by NAGAVENI Location: High Court of Karnataka …PETITIONER - 2 - NC: 2025:KHC:12856 WP No. 35531 of 2024 BENGALURU – 560 052. …RESPONDENTS (BY SRI SHAMANTH NAIK, HCGP FOR R-1; SRI SHISHIRA AMARNATH, ADVOCATE FOR R-2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS TO REFUND THE DIFFERENTIAL GST AMOUNT PAID BY THE PETITIONER FOR THE WORKS EXECUTED BY EACH OF THE PETITIONERS RESPECTIVELY, AS PER THE REPRESENTATIONS DTD 21.11.2024 GIVEN BY THE PETITIONERS- CONTRACTORS TO R2 AS PER ANNEXURE-B. THIS PETITION, COMING ON FOR PRELIMINARY HEARING ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this Court seeking the following prayer: “a) Issue a writ or such other order in the nature of Mandamus directing the Respondents to refund the differential GST amount paid by the Petitioners for the works executed by each of the Petitioners respectively, as per the representations dated 21-11-2024 given by the Petitioners-Contractors to Respondent 2 as per ANNEXURE-B. b) Any other relief that, the Hon’ble Courts deems it fit in the light of the facts and circumstances, in the ends of justice.” - 3 - NC: 2025:KHC:12856 WP No. 35531 of 2024 2. Heard Sri Ravikiran P Pawar, learned counsel appearing for petitioner, Sri Shamanth Naik, learned High Court Government Pleader appearing for respondent No.1 and Sri Shishira Amarnath, learned counsel appearing for respondent No.2. 3. Learned counsel for petitioner submits that the issue in the lis stands answered by the judgment rendered by the
Decision
“20. In the result, I pass the following:- ORDER (i) Petitions are hereby disposed of. (ii) The Respondents-State and other Govt agencies / Respondents who have entered into works contract with the Petitioners are issued the following directions / guidelines:- (a) Calculate the works executed pre- GST (prior to 01.07.2017) under KVAT regime and payments received by the Petitioners. (b) The payments received by the Petitioners pre-GST for such of the works to be executed before 01.07.2017 are - 4 - NC: 2025:KHC:12856 WP No. 35531 of 2024 assessed under KVAT tax regime – either under COT or VAT scheme as applicable. (c) Calculate the balance works to be completed or completed after 01.07.2017, in the original contract. (d) Derive the rate of materials, KVAT items required or used to complete the balance works. (e) Deduct the "KVAT" amount from those materials and the service tax, if applicable. (f) Add the applicable "GST" on those items. (g) Input Credit on the materials is to be arrived at and be set off as against the output GST, for those assessed under regular VAT. (h) Further, the “tax difference” should be calculated on such balance works executed or to be executed after 01.07.2017 separately. (i) Based on the result obtained on calculation of the tax difference on the concerned contract department/authority has to decide whether agreement needs to be changed or not. value, (j) A supplementary agreement may be signed with the Petitioners for the revised GST-inclusive work value for the Balance Work completed or to be completed as determined above and in case the revised GST-inclusive work value for the Balance Work, completed or to be completed after the original 01.07.2017, agreement work value, the Petitioners are to be paid /reimbursed, as the case may be, the differential tax amount by the concerned employer; so also, in case payments for is more than - 5 - NC: 2025:KHC:12856 WP No. 35531 of 2024 works completed pre-GST are made post- GST, the concerned employer has to pay or reimburse, as the differential tax amount, to the Petitioners. the case may be, (iii) Petitioners are directed to submit comprehensive representations to the respective employers/Respondents within a period of 4 weeks from the date of receipt of a copy of this order, irrespective of whether they have completed the works pre-GST or post-GST or payments were received or yet to be received post-GST. employers/Respondents (iv) If such representations are submitted, the are respective directed to consider and dispose of the same in the light of the aforesaid directions / guidelines as expeditiously as possible and at any rate within a period of 8 weeks from the date of submission of the representations. (v) In view of the interim orders passed by this Court in the present petitions, such of the petitioners who had not filed their GST returns during the period after 01.07.2017 are permitted to file their returns / amended returns, pursuant to the calculation of the differential tax as per procedure above under GST regime, without insisting on interest or penalty or limitation. (vi) The GST authorities are also directed not to take precipitative action against the Petitioners for a period of 6 months from the date of receipt of a copy of this order. (vii) Liberty is reserved in favour of the petitioners to challenge any order / decision passed / taken by the respondents or the authorities, subsequent to this order and also take recourse to such remedies as available in law.” The afore-quoted judgment is followed by this Court in W.P.No.107489 of 2024 disposed on 19-02-2025. In view - 6 - NC: 2025:KHC:12856 WP No. 35531 of 2024 of the judgments as quoted supra, this petition also deserves to succeed. Hence, the following: ORDER (i) The Writ Petition is allowed. (ii) The respondents are hereby directed to reimburse the GST amount, as indicated in the representation dated 21-11-2024, within a period of six weeks from the date of receipt of the copy of this order. Consequently, I.A.No.1 of 2025 also stands disposed. Sd/- (M.NAGAPRASANNA) JUDGE BKP List No.: 1 Sl No.: 66