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IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.M.MANOJ
Mary Matha Infrastructure Private Limited – Appellant
Versus
State Of Kerala, Represented By The Additional Chief Secretary To Government, Scheduled Castes/Scheduled Tribes Development – Respondent
| Table of Content |
|---|
| 1. petitioner awarded tender seeks full payment including taxes. (Para 1 , 2 , 3) |
| 2. contract defines payment terms including all tax liabilities. (Para 4 , 5 , 6) |
| 3. government confirms tax payment responsibilities and reimbursement process. (Para 13 , 14 , 15 , 24) |
| 4. court orders reimbursement of due gst payments consistent with contract law. (Para 30 , 31 , 32) |
JUDGMENT :
P.M. Manoj, J.
This writ petition is preferred by the Contractor who was awarded the tender for the construction of a hospital block (consisting of a Ward, OT, and OPD) at the Institute of Integrated Medical Sciences, Palakkad Medical College. The bid was accepted at 4% below the estimated rate, and the formal tender agreement was executed between the petitioner and the 2nd and 4th respondents on 30.01.2017.
2. The grievance voiced in this petition pertains to the non-payment of the full contractual amount due to the petitioner, including applicable VAT and GST. Furthermore, the petitioner seeks the reimbursement of the VAT and GST amounts already remitted by them to the authorities.
3. The petitioner contends that, pursuant to Clause 3.10.3 of the tripartite agreement, all duties, taxes, transportatio
Contractual agreements dictate that indirect taxes like GST, not included in the bid price, are the employer's responsibility; contractors are entitled to reimbursement.
A contractor is entitled to GST payments on completed works, as tender rates must be exclusive of GST per government circulars.
If any amount is collected as tax, without authority of law, refund of the same can be claimed by filing a suit. It is also settled proposition of law that such refund can also be directed in a writ ....
Contractors are entitled to reimbursement of differential taxes arising from the transition from VAT to GST based on previous agreements, ensuring compliance with both existing guidelines and timelin....
The court ruled that claims for reimbursement of GST, arising from contractual obligations, do not involve public law and should be addressed through alternative remedies such as arbitration.
Mandatory reimbursement of differential GST amounts by contracting authorities for works executed pre-GST, respecting established tax laws and prior contractual obligations.
Point of law : Since the terms “except goods and service tax” was specified in Clause 3.3.3 of Ext.P1, the petitioner could only have quoted the bid amount, without including the GST.
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