IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28^TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO.4676 OF 2025 (T-RES)

BETWEEN:

M/S PSY CONSTRUCTIONS REPRESENTED BY PROPRIETOR SRI G LOKESH S/O SRI THIMMAIAH AGED ABOUT 57 YEARS CIVIL CONTRACTOR R/AT NO.96, SHARI GANESH NILAYA

5^TH CROSS, RAJENDRA NAGARA SHIVAMOGGA – 577 201. AS PER KVAT ACT, 2003 PROPRIETORSHIP CONCERN.

…PETITIONER (BY SRI. SATHYANARAYANA T.R., ADVOCATE)

AND:

1. THE STATE OF KARNATAKA FINANCE DEPARTMENT

2^ND FLOOR, VIDHANA SOUDHA BENGALURU – 560 001 Digitally signed REPRESENTED BY ITS by CHANDANA CHIEF SECRETARY.

B M Location: High

2. THE MANAGING DIRECTOR Court of Karnataka KARNATAKA NEERAVARI NIGAM NIYAMITHA

4^TH FLOOR, COFFEE BOARD BUILDING NO.1 DR. B.R. AMBEDKAR VEEDHI, BENGALURU – 560 001.

3. THE EXECUTIVE ENGINEER KARNATAKA NEERAVARI NIGAM NIYAMITHA UPPER TUNGA PROJECT DIVISION SHIVAMOGGA ZONE SHIVAMOGGA – 577 202.

…RESPONDENTS (BY SMT.JYOTI M. MARADI, HCGP FOR R-1;

SRI. PRASHANTH B.R., ADVOCATE FOR R-2 & R-3)

THIS W.P. IS FILED UNDER ARTILCES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE R-2 AND R-3 TO DISBURSE THE GST AMOUNT IN FAVOUR OF THE PETITIONER OR CONSIDER THE REPRESENTATION DATED 08.07.2024 WHICH HAS BEEN PRODUCED AT ANNX-D AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’

GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition, petitioner seeks the following reliefs:

“(i) To issue writ of mandamus directing the respondent Nos.2 and 3 to disburse the GST amount in favour of the petitioner or consider the representation dated

08.07.2024 which has been produced at Annexure-D. (ii) To issue or direct the respondent authorities to reimburse GST amount a sum of Rs.3,80,629/- to the petitioner and has sought for direction for payment of interest on tax dues at 18% per annum being the statutory interest rate chargeable under Section 50 of the CGST Act, 2017 and consider the representation dated 08.07.2024 which has been produced at Annexure-D in the interest of justice and equity.”

2. Heard learned counsel appearing for the petitioner, learned HCGP for respondent No.1 and learned counsel for respondent Nos.2 and 3 and perused the material on record.

3. Learned counsel appearing for the petitioner submits that the prayer that is sought is to be allowed in the light of the law laid down by this Court in the case of Sri.Chandrashekaraiah and others Vs. The State of Karnataka – W.P.No.9721/2019 and connected cases dated 11.04.2023, wherein it is held as under:

"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 executed before 01.07.2017 are to be 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 contract value, concerned department/ authority has to decide whether agreement needs to be changed or not.

(j) A supplementary agreement may be signed with the