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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
STS-KEC(JV), Represented by its Authorised Signatory, Mr. Sanjay Desai – Appellant
Versus
State Tax Officer, Commercial Taxes Building – Respondent
| Table of Content |
|---|
| 1. tax liability on construction services (Para 1 , 2 , 3 , 4) |
| 2. challenge regarding gst rate applicability. (Para 5) |
| 3. arguments of petitioner and respondent (Para 6 , 7 , 8) |
| 4. relevant notifications regarding tax rates (Para 10 , 11) |
| 5. definition of railway under gst and ira (Para 12 , 13 , 14) |
| 6. interpretation of regulatory terms and conditions (Para 15 , 16 , 17) |
| 7. conclusion regarding tax applicability (Para 18 , 19) |
ORDER :
(MOHAMMED SHAFFIQ, J.)
This batch of five Writ Petitions are filed challenging the impugned orders in Form GST DRC-07 dated 12.12.2023, for the assessment years 2018-19, 2019-20, 2020-21, 2021-22 and 2022-23, whereby the petitioner's claim for concessional rate of 12% on works contract services of original works executed pursuant to a contract entered with Tvl.Rail Vikas Nigam Limited (hereinafter referred to as 'RVNL') was rejected, instead the impugned order's levies tax at 18%.
1.1. Since the issue that arises for consideration in all these writ petitions are one and the same, these petitions are disposed of by way of a common order.
2. Brief facts:
2.1. The petitioner is a joint venture of M/s.Stroytechservice LLC, Russia and KEC Internationa
The court confirmed that works contracts related to railways are entitled to a concessional GST rate of 12%, not subject to arbitrary higher taxes, reaffirming the importance of consistent interpreta....
The court ruled that GST does not apply to works contracts completed before 01.07.2017, directing a review of tax liabilities on such contracts and clarifying reimbursement obligations for differenti....
The court affirmed that a Build, Operate, Transfer (BOT) contract constitutes a works contract under tax laws, making the contractor liable for commercial and entry taxes.
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....
Provisions of CGST Act is crystal clear that services rendered are liable for payment of service tax and more specifically, with reference to Section 7 r/w Schedule II, services rendered by the Railw....
Mandatory reimbursement of differential GST amounts by contracting authorities for works executed pre-GST, respecting established tax laws and prior contractual obligations.
The court reaffirmed that construction services qualify as works contracts under the law, entitling the petitioner to refund despite previous rejections based on misinterpretation of statutory notifi....
Prior tax regime remains applicable for works contracts executed pre-GST, preventing retroactive GST imposition.
Composite works contracts are exempt from service tax prior to June 1, 2007, and the value of free supplies is not to be included for service tax calculations prior to the 2009 amendment.
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