2025:MHC:2901 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 15-12-2025 CORAM THE HONOURABLE MR JUSTICE N. SATHISH KUMAR WP No. 48149 of 2025

1. M/s. Kanthan Associates Rep. By Proprietor K.Karunanidhi No.934, 11th Sector,69th Street, Kk Nagar, Chennai- 600 078. Petitioner(s)

Vs

1. State Of Tamil Nadu Rep By Its Principal Secretary Housing And Urban Development, Fort St.

George, Chennai- 600 009.

2.The Executive Engineer And Ado, Cit Nagar Division, Tamil Nadu Housing Board, Anna Salai, Nandanam, Chennai-35.

3.The Superintending Engineer Project Circle (city), Tamil Nadu Housing Board, C-48, Anna Nagar, Chennai- 40.

4.The Chief Engineer, Cmda Complex E And C Market Road, Koyambedu, Chennai- 107.

5.The Additional Director Directorate General Of Gt Intelligence Chennai Zonal Unit, 5th Floor, Tower-

Ii, Bsnl Building, No.16, Greams Road, Chennai-06.

6.The Superintendent Of Cgst And Central Excise Porur Ii Range, Porur Division, Newry Towers, 2054, Ii Avenue, Anna Nagar, Chennai-400. Respondent(s) PRAYER:Petition filed under Article 226 of the Constitution of India, directing the 2nd Respondent to dispose off the representation made by the Petitioner dated 04.12.2024 and to direct the 2nd Respondent to disburse the difference of 6 Percent GST from 01.07.2017 for all the petitioners work contracts which are entitled to the GST rate at 18 percent as per 2nd Respondents Board Resolution No.5.12 dated 23.06.2023 with applicable interest and penalties that may be levied by the GST Authority due to this discrepancy in rates within a time frame as fixed by this Court.

For Petitioner: Mr.Shrivirudishni V For Respondents Mr.V.Jeevagiridharan for R1 Additional Government Pleader Mr.D.Veerasekaran for R2 to R6 Standing Counsel

ORDER

Heard both sides and perused the materials placed on record. By consent of both sides, this writ is taken up for final disposal at the admission stage itself.

2. This writ petition has been filed for a direction, directing the 2nd Respondent to dispose off the representation made by the Petitioner dated 04.12.2024 and to direct the 2nd Respondent to disburse the difference of 6 Percent GST from 01.07.2017 for all the petitioners work contracts which are entitled to the GST rate at 18 percent as per 2nd Respondents Board Resolution No.5.12 dated 23.06.2023 with applicable interest and penalties that may be levied by the GST Authority due to this discrepancy in rates.

3. The Petitioner is engaged in construction activities including Government projects/contracts. The Petitioner participated in a competitive bid issued by the Tamil Nadu Housing Board for construction of commercial complex with 2 basement floors and (G+7 floors) in CIT Nagar and construction of 1 Block of 168 LIG Flats at Ayyapakkam Village under Self Finance Scheme and the petitioner was awarded with the work contracts under Work Orders Nos.SPC1/DB/55/2020 and CC/DB/0209/2015 respectively. 4. In the payment certifications, payment against GST has been factored as 12% on the work contracts assigned by the 2^nd respondent, GST collected was consistently remitted to the GST Department. The GST regime was introduced from 01.07.2017. GST was imposed on the subject services by way of Notification No.11/2017 Central Tax (Rate) Dated 28.06.2017, wherein, the prescribed GST rate for construction services and work contracts relating to supply of services in relation to construction of immovable property is 18%, effective from 01.07.2017 itself. However, the second respondent, through its payment certification and work orders issued to the petitioner, initially applied a reduced rate of 12% instead of statutory rate 18%. This discrepancy has resulted in an underpayment of GST amounting to 6% for all work rendered by the petitioner from 01.07.2017 onwards.

5. The Directorate General of Goods and Service Tax Intelligence, Chennai Zonal Unit, the fifth respondent herein verified the records of the Petitioner and observed that the Petitioner had not paid appropriate GST for t