The Hon’ble High Court of Chhattisgarh vide its order dated 13.01.2023 in the matter of M/s Gordhandas Gobindram Vs. State of Chhattisgarh And Others in WPC No. 209 of 2023, taking note of the judgment of this Court in M/s D.A. Enterprises, wherein it was held that ‘the additional tax burden in the event of a new tax is imposed shall be reimbursed to the contractors, subject to the Contractor furnishing the details of the difference of the tax liability and the additional tax that was required to be paid by the Contractor’, directed the petitioner, for the purpose of getting the reimbursement, to produce before the authority concern necessary proof of the additional tax liability incurred on account of the introduction of the GST law.

The Petitioner filed the writ petition before the Hon’ble High Court regarding additional tax liability incurred by the Petitioner on introduction of GST Law w.e.f. 01.07.2017.

Petitioner’s Submissions: –

• It was submitted on the behalf of the petitioner that the matter pertains to the contract / work order given to the petitioner prior to the introduction of the GST law, for which the petitioner was required to pay certain additional tax liability on introduction of GST. The Petitioner now intends to get the refund of the same from the respondents.
• Reliance was placed on the order of the State Government itself dated 10.10.2018, wherein the respondent-Public Works Department itself has taken a policy decision to ensure the reimbursement of additional tax liability incurred by the contractors in respect of contracts, which were awarded prior to 01.7.2017 i.e., the date from which the GST law came into force.
• Further, the reliance was placed on the order of this Court in WPT No. 92 of 2020 – M/s D. A. Enterprises Vs. State Of Chhattisgarh and others, wherein the identical set of facts were involved and this Hon’ble Court allowed the said writ petition i.e., WPT No. 94 of 2020 on 17.11.2022.

On the other hand, it was submitted on the behalf of the respondents that subject to the petitioner furnishing a fresh claim along with all relevant proof of the additional tax liability incurred by the petitioner, and by producing documents in respect of the additional payment that the petitioner was required to be paid on account of the introduction of the GST law, the claim of the petitioner shall be considered in terms of the order of the State Government dated 10.10.2018.

Held: –

• The Hon’ble Court after considering the submissions made, facts of the case and the judgment of this Court in the matter of M/s D.A. enterprises (supra), disposed of the writ petition permitting the Petitioner to approach the respondents in terms of the order of the State Government dated 10.10.2018.
• Further, the petitioner is also required to produce before the authority concern necessary proof of the additional tax liability incurred on account of the introduction of the GST law within a period of one week.
• However, this would be subject to the petitioner approaching respondents along with fresh claim and necessary proof, the respondents- authorities shall scrutinize the same and take a decision within a further period of 90 days from the date of receipt of claim of the petitioner along with copy of this order keeping in mind the order of the State Government dated 10.10.2018.