2018 Taxo.online 389
WP(C) 7169/2018 dated 09.10.2018
PARTHO KUMAR NATH
THE STATE OF ASSAM AND 7 ORS.
Central Goods & Services Tax Act, 2017
Achintya Malla Bujor Barua, Justice
In favour of assessee
Represented by: –
Petitioner: – Mr. A Sarma
Respondent: GA, Assam
Heard Mr. A. Sarma, learned counsel for the petitioner. Also heard Mr. S.R. Barua, learned counsel for the respondent Nos. 1, 4, 5 and 6 as well as Mr. B. Choudhury, learned counsel for the respondent Nos. 2 and 3.
Issue notice, returnable in four weeks. Extra copy be furnished within three days. Steps on the respondent Nos. 7 and 8 by registered post within three days.
The petitioner was allotted a contract work by the Hailakandi Municipal Board as per work order dated 29.09.2015. An issue has arisen as to whether after the coming into effect of the GST regime from 01.07.2017, the respondent Hailakandi Municipal Board is required to add and deduct the concerned tax along with the bills. The Hailakandi Municipal Board by a communication dated 07.08.2018 addressed to the petitioner informs that as per the Govt. Circular dated 24.08.2017, in respect of the work contracts executed up to 30.06.2017, where the bills/invoices been raised on or after 01.07.2017, the payment in respect of deduction of tax will be made as per the provision of AGST Act of 2017. It is also stated that since the raising of invoices and payment for the supplies would be under the GST regime and the transaction were not accounted under the VAT, therefore, the provisions of deduction of tax under the Assam Vat Act, 203 shall not be applicable.
By taking such a stand, the respondent Hailakandi Municipal Board is neither adding the tax amount in the bills of the petitioner nor deducting it thereafter from the bills.
In the consequence, because of such inaction on the part of the respondent Hailakandi Municipal Board, the petitioner is now being exposed to the risk of being subjected to some coercive action by the taxing authorities.
In such view of the matter and being prima facie satisfied and also considering the balance of convenience and the irreparable loss the petitioner may suffer, it is provided that in the interim, no coercive action shall be taken by the respondent authorities against the petitioner regarding the payment of GST.
However, the authority will be at liberty to do the needful as required under the law by adding the GST to the bills and thereupon deducting it, if so advised.
List this matter on 28.11.2018
Registry is directed to reflect the name of Mr. B. Choudhury, learned counsel for the Finance and Taxation Department in the cause list.