ALLAHABAD HIGH COURT
Ganga Sagar Singh …..Appellant
V/s
Union of India and 6 Others …..Respondent
Honble Justice
Arun Bhansali, CJ. and Vikas Budhwar, J.
Date : 12/11/2024
Appearance: Puspender Prajapati, Vipin Kumar Kushwaha for the Petitioner.
A.S.G.I., C.S.C., Krishna Ji Shukla, Saurabh Pratap Singh, Ankur Agarwal for the
Respondent.
In Favour of Assessee
Issues Involved :- The court disposed of the petitions by directing respondent no.6 (Project Implementation Unit) to release the GST rate difference payment to the petitioner within one week. The GST rate had increased from 12% to 18% post-contract issuance, and though the petitioner paid the higher rate, reimbursement was pending. The court’s order follows respondent no.4’s confirmation that a Credit Cash Limit (CCL) had been issued to cover the difference in GST for payment release.
Section: Contractual obligations and reimbursement of GST rate differences
Subject: Reimbursement due to post-contract GST rate increase
Matter Involved: The petitioner sought reimbursement for the GST rate increase from 12% to 18%, arguing that while they had paid the higher rate, the difference was yet to be reimbursed. The respondents confirmed that the Credit Cash Limit (CCL) for the difference had been issued to the Project Implementation Unit (PIU). The court directed the PIU (respondent no.6) to disburse the amount within a week, thereby ensuring the petitioner is reimbursed as per the contractual terms impacted by the GST adjustment.
Held by Court: The court held that the petitioner is entitled to reimbursement for the GST rate difference following the increase from 12% to 18%, as per the terms of the contract. Recognizing that respondent no.4 had issued the Credit Cash Limit (CCL) to cover this difference, the court directed respondent no.6 (the Project Implementation Unit) to release the payment within one week. This decision upholds contractual adherence in cases where tax rates are modified post-contract and ensures that petitioners are not financially disadvantaged due to statutory tax adjustments, especially when necessary funds have already been allocated by the relevant authority.
JUDGMENT
HON`BLE VIKAS BUDHWAR, J.
1. These petitions have been filed by the petitioner seeking direction to the respondents to make payment of the difference in the rate of GST.
2. Submissions have been made that though at the time of grant of contract, the rate of GST was 12%, the same stood enhanced to 18%. While the petitioner has deposited the amount of GST, the same has not been reimbursed to the petitioner and, therefore, the respondents be directed to make payment of the difference GST.
3. Learned counsel for the respondents submit that for the difference GST, Credit Cash Limit (CCL) has already been issued by respondent no.4-U.P. Rural Roads Development Agency to the concerned Project Implementation Unit (PIU) and that the payment is to be released by the said PIU.
4. Learned counsel appearing for respondent no.6-PIU submits that the requisite would be released to the petitioner in case the CCL has been received, as claimed by the counsel appearing for respondent no.4.
5. In that view of the matter, petitions filed by the petitioner are disposed of.
6. The respondent no.6 is directed to release the amount to the petitioner within a period of one week from the date of this order.