Karnataka High Court
M/S Sweet Home Constructions R/By The ... vs The Government Of Karnataka on 19 February, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
-1-
NC: 2025:KHC-D:3425
WP No. 100335 of 2025
IN THE HIGH COURT OF KARNATAKA,
DHARWAD BENCH
DATED THIS THE 19TH DAY OF FEBRUARY, 2025
BEFORE
THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 100335 OF 2025 (T-RES)
BETWEEN:
M/S. SWEET HOME CONSTRUCTIONS
REPRESENTED BY THE
PROPRIETOR OF THE FIRM
SRI. SHIVANAND R. SHETTY,
AGED ABOUT 52 YEARS,
HAVING ITS PLACE OF BUSINESS AT.
NO. 8, GROUND FLOOR,
DATTATREYA COMPLEX,
SAI MANDIR ROAD, KARWAR -581306,
KARNATAKA.
...PETITIONER
(BY SRI. RAVIKIRAN P. PAWAR, ADVOCATE)
AND:
Digitally signed by
VISHAL NINGAPPA
PATTIHAL
Location: High
Court of Karnataka,
1. THE GOVERNMENT OF KARNATAKA,
Dharwad Bench,
Dharwad REPRESENTED BY ITS
ADDITIONAL CHIEF SECRETARY,
DEPARTMENT OF FINANCE,
2ND FLOOR, VIDHANA SOUDHA,
DR. AMBEDKAR VEEDHI,
BANGALORE- 560 001.
2. THE EXECUTIVE ENGINEER,
PWD, KARWAR DIVISION,
KARWAR -581301.
...RESPONDENTS
(BY SRI SHARAD V. MAGADUM, AGA FOR R1,
SMT VEENA HEGDE, ADVOCATE FOR R2)
-2-
NC: 2025:KHC-D:3425
WP No. 100335 of 2025
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A
WRIT OR SUCH OTHER ORDER IN THE NATURE OF MANDAMUS
DIRECTING THE RESPONDENTS TO REFUND THE
DIFFERENTIAL GST AMOUNT PAID BY THE PETITIONER FOR
THE WORKS EXECUTED BY THE PETITIONER AS PER THE
REPRESENTATIONS DATED 21-11-2024 BEARING REF
NO.088/SHC/LETTER/2024-25 GIVEN BY THE PETITIONER-
CONTRACTOR TO RESPONDENT NO.2 AS PER
ANNEXURE-B; ANY OTHER RELIEF THAT THE HON'BLE COURTS
DEEMS IT FIT IN THE LIGHT OF THE FACTS AND
CIRCUMSTANCES, IN THE ENDS OF JUSTICE.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
ORAL ORDER
(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)
1. The petitioner is before this Court seeking the
following relief:
"i. To issue a writ or such other order in the nature
of mandamus directing the respondents to refund the
differential GST amount paid by the petitioner for the
works executed by the petitioner as per the
representations dated 21-11-2024 bearing Ref
No.088/SHC/LETTER/2024-25 given by the petitioner-
contractor to respondent No.2 as per Annexure-B;
ii. Any other relief that the Hon'ble Courts deems it
fit in the light of the facts and circumstances, in the ends
of justice."
2. Heard the learned counsel Sri. Ravikiran P.
Pawar appearing for the petitioner, learned counsel
NC: 2025:KHC-D:3425
Smt.Veena Hegde appearing for the respondent No.2 and
the learned AGA Sri.Sharad A.Magadum representing the
respondent No.1-State.
3. The learned counsel for the petitioner submits
that the issue in the lis stands answered by a judgment
rendered by a Coordinate Bench in W.P.No.9721/2019
connected with matters disposed on 11.04.2023, which
reads as follows:
"20. In the result, I pass the following:-
ORDER
(i) Petitions are hereby disposed of.
(ii) The Respondents-State and other Govt
agencies / Respondents who have entered into works
contract with the Petitioners are issued the following
directions / guidelines:-
(a) Calculate the works executed pre-GST (prior
to 01.07.2017) under KVAT regime and payments
received by the Petitioners.
(b) The payments received by the Petitioners
preGST for such of the works executed before
01.07.2017 are to be assessed under KVAT tax
regime - either under COT or VAT scheme as
applicable.
NC: 2025:KHC-D:3425
(c) Calculate the balance works to be completed
or completed after 01.07.2017, in the original
contract.
(d) Derive the rate of materials, KVAT items
required or used to complete the balance works.
(e) Deduct the "KVAT" amount from those
materials and the service tax, if applicable.
(f) Add the applicable "GST" on those items.
(g) Input Credit on the materials is to be arrived
at and be set off as against the output GST, for
those assessed under regular VAT.
(h) Further, the "tax difference" should be
calculated on such balance works executed or to
be executed after 01.07.2017 separately.
(i) Based on the result obtained on calculation
of the tax difference on the contract value,
concerned department/ authority has to decide
whether agreement needs to be changed or not.
(j) A supplementary agreement may be signed
with the Petitioners for the revised GST-inclusive
work value for the Balance Work completed or to
be completed as determined above and in case the
revised GST-inclusive work value for the Balance
Work, completed or to be completed after
01.07.2017, is more than the original agreement
work value, the Petitioners are to be paid
/reimbursed, as the case may be, the differential
tax amount by the concerned employer; so also, in
case payments for works completed pre-GST are
made post-GST, the concerned employer has to
NC: 2025:KHC-D:3425
pay or reimburse, as the case may be, the
differential tax amount, to the Petitioners.
(iii) Petitioners are directed to submit
comprehensive representations to the respective
employers/Respondents within a period of 4 weeks
from the date of receipt of a copy of this order,
irrespective of whether they have completed the
works pre-GST or post-GST or payments were
received or yet to be received post-GST.
(iv) If such representations are submitted, the
respective employers/Respondents are directed to
consider and dispose of the same in the light of the
aforesaid directions / guidelines as expeditiously as
possible and at any rate within a period of 8 weeks
from the date of submission of the representations.
(v) In view of the interim orders passed by this
Court in the present petitions, such of the petitioners
who had not filed their GST returns during the period
after 01.07.2017 are permitted to file their returns /
amended returns, pursuant to the calculation of the
differential tax as per procedure above under GST
regime, without insisting on interest or penalty or
limitation.
(vi) The GST authorities are also directed not to
take precipitative action against the Petitioners for a
period of 6 months from the date of receipt of a copy
of this order.
(vii) Liberty is reserved in favour of the petitioners to
challenge any order / decision passed / taken by the
respondents or the authorities, subsequent to this order
NC: 2025:KHC-D:3425
and also take recourse to such remedies as available in
law."
4. In that light, the petition deserves to succeed
with the same order.
5. For the aforesaid reasons, the following:
ORDER
i. The petition is allowed.
ii. The respondents are hereby directed to
reimburse GST amount as indicated in the
representation dated 21.11.2024.
iii. The respondents/Department shall reimburse
the said amount within a period of six weeks
from the date of receipt of a copy of this order.
Sd/-
(M.NAGAPRASANNA)
JUDGE
KGK
