Page 101 - GSTL_2nd April 2020_Vol 35_Part 1

2020 (35) G.S.T.L. 3 (All.)

IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Biswanath Somadder and Dr. Yogendra Kumar Srivastava, JJ.
BHIM DUTT PANDE
Versus
UNION OF INDIA
Writ Tax No. 248 of 2018, decided on 14-2-2020
GST levy on Government Contracts - Tender filed during pre-GST
regime - Restrictions on tax deduction - Petitioner pleading that while filing
Tender Documents for repair and maintenance contract for Railways in pre-
GST regime, he had factored only that portion of tax which was leviable at that
time while GST rate of 12% came into force subsequently - HELD : Factually
established that Railways had issued LOA on 28-7-2017 when GST Act having
been enacted on 12-4-2017 had come into force on 1-7-2017 - LOA specifically
mentioned about levy of GST at applicable rates - Payment for contract has
also been received - Accordingly, petitioner’s contention of restricting deduc-
tion of tax amount, not acceptable - Section 9 of Central Goods and Services
Tax Act, 2017 - Article 226 of Constitution of India. [paras 4, 5]
Petition dismissed
REPRESENTED BY : Shri Mahabir Yadav, Counsel, for the Petitioner.
Shri Ravi Prakash Pandey, Counsel, for the Respond-
ent.
[Order]. - The petitioner has approached this Court seeking its interven-
tion for the purpose of restraining the respondent - North Central Railway Ad-
ministration - to deduct any amount more than 2% in the name of tax from the
bill of the writ petitioner.
2. The petitioner claims to be a Railway Civil Contractor based at
Allahabad. According to the petitioner, he had participated in a bid for execution
of annual repairs and maintenance of zonal work for GM bungalow and officers
quarters in terms of a tender which was uploaded on 28th March, 2017. Accord-
ing to the petitioner, he had quoted his rate before the North Central Railway
Administration in anticipation that he would be liable for the taxation at the rate
of 2% [VAT (4-2) + Service Tax 0%].
3. It is the specific case of the writ petitioner that in the meantime, VAT
and Service Tax was replaced by GST and the new taxation system came into
force on 1st July, 2017, whereupon the writ petitioner was held liable for GST on
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