Disposed¶48

Karnataka State Licenced Electrical Association -R- v. the State of Karnataka

Karnataka HC29 Jan 2025WP/100415/2025

Case brief

AI extract

What is this about?

Keywords: GST exclusion in public tenders; works contract versus service contract; Circular No. AAE 417 VECHCHA-12/2024 dated 09.08.2024; KPTCL substation servicing, shift and maintenance tender dated 04.11.2024 (No. 903/AEAM(V)/PA(KAMATTUNI)/KANIEAM(KA) SAKANIEAM-3 AND 4/2024-25/CYS-41); certiorari and mandamus under Articles 226 and 227; Karnataka High Court, Dharwad Bench; GM-TEN; WP No. 100415 of 2025; NC: 2025:KHC-D:1767; Justice M. Nagaprasanna; petition disposed as devoid of merit on 29-01-2025.

What did the court decide?

The Circular dated 09.08.2024 is directed at tenders of the State or an instrumentality of the State insofar as works contracts are concerned, requiring tender notifications for works contracts to exclude GST. ¶42

Karnataka State Licenced Electrical Association… — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Disposed

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Issue for consideration

Whether the notice inviting tender dated 04.11.2024 for servicing, shift and maintenance of substations ought to have excluded GST in terms of the Circular dated 09.08.2024, i.e., whether that Circular applies to this tender.

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Court's answer

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Ratio / Principle

The subject tender in this case is admittedly not a works contract but a service contract, being a tender for servicing, shift and maintenance of substations.

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Key takeaways

Since the Circular deals with works contracts and the subject tender is a service contract, the Circular would not come to the aid of the petitioner.ratio¶45
In that light, there is no merit involved in what the petitioner seeks to project; the petition is devoid of merit.ratio¶48

Detailed headnote1 paragraphs

High Court of Karnataka, Dharwad Bench (M.Nagaprasanna J.), 29-01-2025, WP No. 100415 of 2025 (GM-TEN): Writ petition under Articles 226 and 227 of the Constitution seeking certiorari to quash Tender Notification No. 903/AEAM(V)/PA(KAMATTUNI)/KANIEAM(KA) SAKANIEAM-3 AND 4/2024-25/CYS-41 dated 04/11/2024 issued by Respondent No.4 (Superintendent Engineer, K.P.T.C.L.) through Vijaya Vani paper, and mandamus to re-issue tenders for shift duties and operations of 400KV, 220KV and 110KV KPTCL substations without GST, relying on Circular No. AAE 417 VECHCHA-12/2024 dated 09.08.2024. HELD: the Circular is confined to works contracts of the State or its instrumentalities, requiring tender notifications therein to exclude GST; the impugned tender is admittedly not a works contract but a service contract for servicing, shift and maintenance of substations; therefore the Circular does not aid the petitioner. Finding no merit in what the petitioner sought to project, the Court disposed of the petition.

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NC: 2025:KHC-D:1767 WP No. 100415 of 2025

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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

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DATED THIS THE 29^TH DAY OF JANUARY, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE M.NAGAPRASANNA

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WRIT PETITION NO. 100415 OF 2025 (GM-TEN)

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BETWEEN:

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KARNATAKA STATE LICENCED ELECTRICAL ASSOCIATION (R) DHARWAD DISTRICT COMMITTEE, MALAPUR LAST BUS STOP, UDAYA NAGAR, DHARWAD- 580008, REPRESENTED BY ITS VICE-PRESIDENT.

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…PETITIONER

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(BY SRI. HEMANTHKUMAR L. HAVARAGI, ADVOCATE)

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AND:

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THE STATE OF KARNATAKA, DEPARTMENT OF POWER, BY ITS PRL. SECRETARY, VIDHANA SOUDHA, BENGALURU, PIN- 560001.

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Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High court of Karnataka, Dharwad Bench, Dharwad

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THE CHIEF SECRETARY DEPARTMENT OF FINANCE STATE OF KARNATAKA, VIDHANA SOUDHA, BENGALURU, PIN- 580001.

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THE DEPUTY COMMISSIONER, DHARWAD, DISTRICT. DHARWAD, PIN- 580001.

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THE SUPERINTENDENT ENGINEER, K.P.T.C.L., VIDYUT NAGAR, KARWAR ROAD, HUBBALLI, TQ. HUBBALLI, DISTRICT. DHARWAD, PIN- 580024.

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…RESPONDENTS

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(BY SRI SHARAD V. MAGADUM, AGA)

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NC: 2025:KHC-D:1767 WP No. 100415 of 2025

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA IS PRAYING TO, A WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED TENDER NOTIFICATION BEARING NO. 903/AEAM(V)/PA(KAMATTUNI)/KANIEAM(KA) SAKANIEAM-3 AND 4/2024-25/CYS-41 DATED. 04/11/2024, ISSUED BY THE RESPONDENT NO.4 THROUGH VIJAYA VANI PAPER, VIDE ANNEXURE-B. A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.4 TO RE-ISSUE THE TENDERS NOTIFICATION CALLING FOR CARRYING OUT SHIFT DUTIES AND OPERATIONS OF 400KV, 220KV, 110KV AND 110KV KPTCL-SUB- STATIONS TO ALL TRANSMISSION W AND M/M WITHOUT GST AS PER CIRCULAR BEARING NO. AAE 417 VECHCHA-12/2024 DATED. 09/08/2024 ISSUED BY THE RESPONDENT NO.2, VIDE ANNEXURE-A.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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ORAL ORDER

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(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

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The petitioner is before this Court, calling in

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question notice inviting tender dated 04.11.2024, on a solitary score that payment of GST is exempted in terms of a Circular dated 09.08.2024.

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3 - NC: 2025:KHC-D:1767 WP No. 100415 of 2025

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Heard the learned counsel Sri.Hemanthkumar L.Havaragi appearing for the petitioner and the learned AGA Sri.Sharad V.Magadum for the respondent-State.

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The respondent-KPTCL issues a notice inviting tender calling for applications from eligible tenderers for the purpose of servicing, shift and maintenance of substations. The contention of the petitioner is that, GST should be excluded from such tender, but GST has been included in the tender, which is contrary to Circular dated 09.08.2024. The Circular reads as follows:

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G¯ÉèÃTvÀ ¸ÀÄvÉÆÛÃ¯ÉAiÀÄ°è PÁªÀÄUÁjUÀ¼À mÉAqÀgÀÄUÀ¼À£ÀÄß PÀgÉAiÀÄÄªÀ ¸ÀAzÀ¨sÀðzÀ°è GST ªÉÆvÀÛªÀ£ÀÄß ¸ÀéAiÀÄA ZÁ°vÀªÁV vÀAvÁæA±ÀzÀ°è ¯ÉPÀÌºÁQ vÉÆÃj¸ÀÄªÀ §UÉÎ ¸ÀÆPÀÛ ªÀåªÀ¸ÉÜ ªÀiÁqÀ®Ä DPAR (e-Gov) gÀªÀjUÉ ¤¢ðµÀÖªÁzÀ ¸ÀÆZÀ£ÉUÀ¼À£ÀÄß ¤ÃqÀ¯ÁVvÀÄÛ. DzÀgÉ, F PÀÄjvÀÄ mÉAqÀgïUÀ¼À£ÀÄß PÀgÉAiÀÄªÀ ªÀÄvÀÄÛ ªÀiË®åªÀiÁ¥À£À ªÀiÁqÀÄªÀ ¸ÀAzÀ¨sÀðUÀ¼À°è UÉÆAzÀ® GAmÁVgÀÄªÀÅzÀÄ ¸ÀPÁðgÀzÀ UÀªÀÄ£ÀPÉÌ §A¢gÀÄvÀÛzÉ. F »£Àß¯ÉAiÀÄ°è ¥Àæ¸ÁÛ¦vÀ «µÀAiÀÄzÀ PÀÄjvÀÄ F PÉ¼ÀV£À ¸ÀÆZÀ£ÉUÀ¼À£ÀÄß ¤ÃqÀ¯ÁVzÉ.

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FUÁUÀ¯ÉÃ ¸ÀPÁðgÀ¢AzÀ UniSR C¼ÀªÀrPÉ §UÉÎ ¤ÃqÀ¯ÁzÀ ¸ÀPÁðgÀzÀ DzÉÃ±ÀzÀ°è£À ¤zÉÃð±À£ÀUÀ¼ÀAvÉ CAzÁdÄ ¥ÀnÖAiÀÄ°è GST ªÉÆvÀÛªÀ£ÀÄß ¥ÀævÉåÃPÀªÁV ¸ÉÃ¥ÀðzÀ ªÀiÁqÀ¨ÉÃPÁVzÀÄÝ, CzÀ£ÀÄß vÀAvÁæA±ÀzÀ°è ¸ÀéAiÀÄAZÁ°vÀªÁV ¯ÉPÀÌºÁQ ºÉÆÃj¸À®Ä DPAR(e-gov) ¤AzÀ PÀæªÀÄªÀ»¸ÀvÀPÀÌzÀÄÝ.

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¸ÀPÁðgÀ¢AzÀ FUÁUÀ¯ÉÃ C£ÀÄªÉÆÃ¢¸À¯ÁzÀ KPÀgÀÆ¥À C£ÀÄ¸ÀÆa zÀgÀUÀ¼À (UniSR) C£ÀéAiÀÄ vÀAiÀiÁj¸À¯ÁzÀ CAzÁdÄ ¥ÀnÖAiÀÄ°è GST ªÉÆvÀÛªÀ£ÀÄß ºÉÆgÀvÀÄ¥Àr¹ mÉAqÀgïVlÖ ªÉÆ§®UÀ£ÀÄß (Amount put to tender) ¤UÀ¢¥Àr¹, £ÀzÀj ªÉÆvÀÛPÉÌ mÉAqÀgï DºÁé¤¸ÀÄªÀÅzÀÄ.

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NC: 2025:KHC-D:1767 WP No. 100415 of 2025

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UÀÄwÛUÉzÁgÀgÀÄ mÉAqÀgïVlÖ ªÉÆ§®VUÉ JzÀÄgÁV mÉAqÀgï£À°è GST ºÉÆgÀvÀÄ¥Àr¹ ¤ÃqÀÄªÀ zÀgÀUÀ¼À£ÀÄß vÀÄ®£À ªÀiÁr mÉAqÀgÀÄzÁgÀgÀ£ÀÄß L1 ¤zsÀðj¸À®Ä vÀAvÀæA±ÀzÀ°è PÀæªÀÄªÀ»¸ÀÄªÀÅzÀÄ.

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UÀÄwÛUÉzÁgÀjAzÀ ¥ÀqÉAiÀÄ¯ÁUÀÄªÀ EMD, Performance, Currente Gurity Depa ªÀÄÄAvÁzÀªÀÅÅUÀ¼À ¤ªÀðºÀuÉUÉ ¸ÀA§A¢ü¹zÀAvÉ ªÉÄÃ®ÌAqÀAvÉ ¤UÀ¢¥Àr¸À¯ÁzÀ mÉAqÀgÀ£ÀÄß ªÉÆ§®UÀ£ÀÄß ªÀiÁvÀæ ¥ÀjUÀtÂ¸ÀÄªÀÅzÀÄ.

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F jÃwAiÀiÁV mÉAqÀgïVlÖ ªÉÆ§®UÀÄ ªÀÄvÀÄÛ GST ªÉÆ§®UÀÄ ¸ÉÃjzÀAvÉ MmÁÖgÉ ªÉÆvÀÛªÀÅ DqÀ½vÁvÀäPÀ C£ÀÄªÉÆÃzÀ£É ¤ÃrzÀ ªÉÆvÀÛªÀ£ÀÄß «ÄÃgÀ¢gÀÄªÀÅzÀ£ÀÄß DAiÀiÁ ¸ÀAUÀæºÀuÁ ¥Áæ¢üPÁgÀUÀ¼ÀÄ RavÀ¥Àr¹PÉÆ¼ÀîvÀPÀÌzÀÄÝ.

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UÀÄwÛUÉzÁgÀgÉÆA¢UÉ ªÀiÁrPÉÆ¼Àî¯ÁUÀÄªÀ M¥ÀàAzÀzÀ°è, M¥ÀàAzÀzÀ ªÉÆvÀÛ ªÀÄvÀÄÛ CzÀgÀ ªÉÄÃ°£À GST ªÉÆvÀÛªÀ£ÀÄß ¥ÀævÉåÃPÀªÁV vÉÆÃj¸ÀvÀPÀÌzÀÄÝ. ªÀÄÄAzÀÄªÀgÉzÀÄ, M¥ÀàAzÀzÀ ZÁ°Û CªÀ¢üAiÀÄ°è GST zÀgÀUÀ¼ÀÄ ¥ÀjµÀÌgÀuÉAiÀiÁzÀ°è CzÀgÀ£ÀéAiÀÄ ¥ÁªÀw / »A¥ÁªÀw ªÀiÁqÀ®Ä ¸ÀPÁðgÀ ªÀÄvÀÄÛ UÀÄwÛUÉzÁgÀgÀÄ §zÀÞgÀgÁVgÀÄvÁÛgÉ JA§ CA±ÀªÀ£ÀÄß M¥ÀàAzÀzÀ°è ¸ÉÃ¥ÀðqÉ ªÀiÁqÀvÀPÀÌzÀÄÝ.

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ªÉÄÃ°£À ¸ÀÆZÀ£ÉUÀ¼À£ÀÄß ¸ÀPÁðgÀzÀ J¯Áè E¯ÁSÉUÀ¼ÀÄ ºÁUÀÆ vÀªÀÄä C¢üÃ£ÀzÀ°è PÁAiÀÄð¤ªÀð»¸ÀÄªÀ ¤UÀªÀÄ, ªÀÄAqÀ½UÀ¼ÀÄ ªÀÄvÀÄÛ ¸ÁéAiÀÄvÀÛ ¸ÀA¸ÉÜUÀ¼ÀÄ PÀlÄÖ¤mÁÖV ¥Á°¸ÀÄªÀÅzÀ£ÀÄß J¯Áè ¸ÀAUÀæºÀuÁ ¥Áæ¢üPÁgÀUÀ¼ÀÄ RavÀ¥Àr¹PÉÆ¼ÀîvÀPÀÌzÀÄÝ.”

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The Circular is unequivocal that in tenders

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of the State or instrumentality of the State, insofar as works contract is concerned, excluding GST, the tender notification should be issued. The subject tender in the case at hand, is admittedly not a works contract, but a tender notification issued for the purpose of servicing, shift and maintenance of substations. Therefore, it is admittedly

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NC: 2025:KHC-D:1767 WP No. 100415 of 2025

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a service contract. The circular would not come to the aid

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of the petitioner as it deals with works contract.

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