Allowed

Zubair v. Vs Kerala Water Authority

Kerala HC10 Feb 2021WP(C)/18708/2020

Case brief

AI extract

What is this about?

Two writ petitions filed by a PWD contractor against Kerala Water Authority and State of Kerala regarding payment of differential GST amounts on contracts completed before GST implementation. The court directed authorities to process bills and pay the differential amount within two months.

What did the court decide?

Directing respondents 5 and 6 to draw bills for differential tax; Directing respondents 1 and 4 to process bills and allot funds; Compliance within 2 months.

Zubair v Vs Kerala Water Authority — GST and Indirect Tax | Kerala HC (2021)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE N.NAGARESH

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WEDNESDAY, THE 10TH DAY OF FEBRUARY 2021/21ST MAGHA,1942 WP(C).No.18708 OF 2020(K)

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PETITIONER:

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ZUBAIR V., AGED 48 YEARS, S/O.ABDULLA, CHERUPARAMBIL HOUSE, KODUR P.O., MANGATTUPALAM, MALAPPURAM-676 504.

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BY ADVS. SRI.GEORGE MATHEW SRI.M.D.SASIKUMARAN SHRI.PRAVEEN S. SHRI.SUNIL KUMAR A.G SRI.DIPU JAMES SHRI.MATHEW K.T. SHRI.GEORGE K.V.

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RESPONDENTS:

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1 KERALA WATER AUTHORITY, HEAD OFFICE, JALA BHAVAN,VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS MANAGING DIRECTOR.

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2 SUPERINTENDING ENGINEER, KERALA WATER AUTHORITY, P.H.CIRCLE, MALAPPURAM, MALAPPURAM DISTRICT-676 505.

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3 EXECUTIVE ENGINEER, KERALA WATER AUTHORITY, PROJECT DIVISION, MALAPPURAM DISTRICT-676505.

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4 THE FINANCE MANAGER, KERALA WATER AUTHORITY,JALA BHAVAN, VELLAYAMBALAM,THIRUVANANTHAPURAM-695 033.

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R1-R4 BY SRI.P.BENJAMIN PAUL, SC, KWA

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10.02.2021, ALONG WITH WP(C).19520/2020(L), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) Nos.18708&19520/2020

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: 2 :

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE N.NAGARESH

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WEDNESDAY, THE 10TH DAY OF FEBRUARY 2021/21ST MAGHA,1942

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WP(C).No.19520 OF 2020(L)

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PETITIONER:

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ZUBAIR V., AGED 48 YEARS, S/O/ABDULLA, CHERUPARAMBIL HOUSE, KODUR P.O., MANGATTUPULAM, MALAPPURAM-676 504.

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BY ADVS. SRI.GEORGE MATHEW SHRI.PRAVEEN S. SRI.M.D.SASIKUMARAN SHRI.SUNIL KUMAR A.G SRI.DIPU JAMES SHRI.MATHEW K.T. SHRI.GEORGE K.V.

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RESPONDENT:

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1 STATE OF KERALA REPRESENTED BY ITS SECRETARY, WATER RESOURCES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001.

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2 KERALA WATER AUTHORITY, HEAD OFFICE, JALA BHAVAN, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS MANAGING DIRECTOR.

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3 SUPERINTENDING ENGINEER, KERALA WATER AUTHORITY, P.H.CIRCLE, MALAPPURAM, MALAPPURAM DISTRICT-676 505.

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4 SUPERINTENDEING ENGINEER, KERALA WATER AUTHORITY, P.H.CIRCLE, MALAPARAMBA, KOZHIKODE DISTRICT-673 009.

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WP(C) Nos.18708&19520/2020

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: 3 :

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5 EXECUTIVE ENGINEER, KERALA WATER AUTHORITY, PROJECT DIVISION, MALAPPURAM-676 505.

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6 EXECUTIVE ENGINEER, KERALA WATER AUTHORITY, PROJECT DIVISION, MALAPARAMPA, KOZHIKODE DISTRICT-673 009.

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7 THE FINANCE MANAGER, KERALA WATER AUTHORITY, JALA BHAVAN, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033.

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R2-R7 BY SHRI.P.BENJAMIN PAUL, SC, KWA GOVERNMENT PLEADER SRI. SYAMJI RAM

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10.02.2021, ALONG WITH WP(C).18708/2020(K), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) Nos.18708&19520/2020

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J U D G M E N T

~ ~ ~ ~ ~ ~ ~ ~ ~

Dated this the 10^th day of February, 2021

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[W.P.(C) Nos.18708 & 19520 of 2020]

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The petitioner in both these writ petitions is a A-Class PWD Contractor. These writ petitions relate to three of the works undertaken and completed by the petitioner for the 1^st respondent-Kerala Water Authority.

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The petitioner states that all the three works were tendered prior to the coming into force of GST Act. The Government have implemented GST with effect from 01.07.2017. Accordingly, there was a change in the indirect tax regime and the tax rates. Taking into consideration the change in the tax regime, the Kerala Water Authority issued Ext.P1 Circular.

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As per Ext.P1 Circular, difference between GST paid and the sum of all the taxes subsumed under GST

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WP(C) Nos.18708&19520/2020

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: 5 :

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applicable at the time of bidding shall be absorbed by the Kerala Water Authority on production of payment receipt of GST towards the goods and services on the respective item executed under the tender. The rate/tax difference absorption mechanism requires additional payment or recovery, as the case may be.

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The learned counsel for the petitioner would submit that pursuant to Ext.P1 Circular, the differential amount of tax is being paid by the Kerala Water Authority to respective contractors. The learned counsel for the petitioner pointed out Ext.P3 letter in W.P.(C) No.18708/2020 whereunder the Executive Engineer has addressed the Managing Director of the Kerala Water Authority and requested to enable the Executive Engineer to pay the differential amount.

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Heard.

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In the light of Ext.P1 and the stand taken by the respondents as seen from Ext.P3, the petitioner's claim for payment of differential tax amount requires consideration.

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WP(C) Nos.18708&19520/2020

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: 6 :

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In the circumstances, W.P.(C) No.19520/2020 is

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disposed of directing respondents 5 and 6 to draw a bill in respect of the differential tax amount, if any, and take expeditious steps to pay the amount to the petitioner. W.P.(C) No.18708/2020 is disposed of directing respondents 1 and 4 to process the bills already raised and allot funds to the 3^rd respondent enabling the 3^rd respondent to pay the amount to the petitioner. The directions as above shall be complied with within a period of two months.

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Sd/-

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N. NAGARESH, JUDGE

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aks/10.02.2021

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WP(C) Nos.18708&19520/2020

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: 7 :

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APPENDIX OF WP(C) 18708/2020

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PETITIONER'S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF THE CIRCULAR NO.0023/2011/DY.AM/FIN/KWA DTD.10.08.2017 (CIRCULAR-GST/002/17).

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EXHIBIT P2 TRUE COPY OF REPRESENTATION DTD.17.10.2019 SUBMITTED BY PETITIONER TO 3RD RESPONDENT. EXHIBIT P3 TRUE COPY OF FORWARDING LETTER NO.DB2/PROJECT/312/2015-16 DTD.01.11.2019 ALONG WITH VOUCHER.

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WP(C) Nos.18708&19520/2020

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: 8 :

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PETITIONER'S EXHIBITS:

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EXHIBIT P1 TRUE COPY OF CIRCULAR NO.0023/2011/DY.AM/FIN.KWA DATED 10.08.2017 ISSUED BY 2ND RESPONDENT. EXHIBIT P2 TRUE COPY OF WORK COMPLETION/COMMISSIONING CERTIFICATE DATED 08.03.2019 ISSUED BY ASST. EXECUTIVE ENGINEER, PERINTHALMANNA. EXHIBIT P3 TRUE COPY OF WORK COMPLETION/ COMMISSIONING CERTIFICATE DATED 05.07.2018 ISSUED BY ASST. EXECUTIVE ENGINEER, PARAPANANGADI. EXHIBIT P4 TRUE COPY OF WORK COMPLETION/ COMMISSIONING CERTIFICATE DATED 29.01.2018 ISSUED BY ASST.EXECUTIVE ENGINEER, CALICUT. EXHIBIT P5 TRUE COPY OF LETTER AND STATEMENT DATED 22.10.2019 SUBMITTED BY PETITIONER TO 5TH RESPONDENT. EXHIBIT P6 TRUE COPY OF LETTER AND STATEMENT DATED 20.10.2019 SUBMITTED BY PETITIONER TO 5TH RESPONDENT. EXHIBIT P7 TRUE COPY OF LETTER AND STATEMENT DATED 09.07.2019 SUBMITTED BY PETITIONER TO 6TH RESPONDENT.

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ncd

Zubair v. Vs Kerala Water Authority

Case brief

What is this about?

What did the court decide?

Zubair v. Vs Kerala Water Authority

Case brief

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