Karnataka High Court
M/S Sweet Home Constructions vs The Government Of Karnaataka on 26 March, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
-1-
NC: 2025:KHC:12856
WP No. 35531 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 26TH DAY OF MARCH, 2025
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 35531 OF 2024 (GM-TEN)
BETWEEN:
M/S. SWEET HOME CONSTRUCTIONS
REPRESENTED BY
THE PROPRIETOR OF THE FIRM
SRI.SHIVANAND R. SHETTY.
AGED ABOUT 55 YEARS
HAVING ITS PLACE OF BUSINESS AT:
NO.8, GROUND FLOOR,
DATTATREYA COMPLEX.
SAI MANDIR ROAD,
KARWAR - 581 306, KARNATAKA.
...PETITIONER
(BY SRI RAVIKIRAN P. PAWAR, ADVOCATE)
AND:
Digitally signed
by NAGAVENI 1. THE GOVERNMENT OF KARNATAKA
Location: High REPRESENTED BY IT'S
Court of
Karnataka ADDITIONAL CHIEF SECRETARY
DEPARTMENT OF FINANCE,
2ND FLOOR, VIDHANA SOUDHA,
DR.AMBEDKAR VEEDHI
BENGALURU - 560 001.
2. THE EXECUTIVE DIRECTOR
KARNATAKA RESIDENTIAL EDUCATION
INSTITUTION SOCIETY (KREIS)
CUNNINGHAM ROAD
-2-
NC: 2025:KHC:12856
WP No. 35531 of 2024
BENGALURU - 560 052.
...RESPONDENTS
(BY SRI SHAMANTH NAIK, HCGP FOR R-1;
SRI SHISHIRA AMARNATH, ADVOCATE FOR R-2)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 &
227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING
THE RESPONDENTS TO REFUND THE DIFFERENTIAL GST
AMOUNT PAID BY THE PETITIONER FOR THE WORKS
EXECUTED BY EACH OF THE PETITIONERS RESPECTIVELY, AS
PER THE REPRESENTATIONS DTD 21.11.2024 GIVEN BY THE
PETITIONERS- CONTRACTORS TO R2 AS PER ANNEXURE-B.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA
ORAL ORDER
The petitioner is before this Court seeking the following
prayer:
"a) Issue a writ or such other order in the nature of
Mandamus directing the Respondents to refund the
differential GST amount paid by the Petitioners for
the works executed by each of the Petitioners
respectively, as per the representations dated
21-11-2024 given by the Petitioners-Contractors
to Respondent 2 as per ANNEXURE-B.
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."
NC: 2025:KHC:12856
2. Heard Sri Ravikiran P Pawar, learned counsel appearing
for petitioner, Sri Shamanth Naik, learned High Court
Government Pleader appearing for respondent No.1 and
Sri Shishira Amarnath, learned counsel appearing for
respondent No.2.
3. Learned counsel for petitioner submits that the issue in
the lis stands answered by the judgment rendered by the
co-ordinate bench of this Court in W.P.No.9721 of 2019 and
connected cases disposed on 11-04-2023. The coordinate
bench considering the entire spectrum of law has passed the
following order:
"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 pre-GST for such of the works
executed before 01.07.2017 are to be
NC: 2025:KHC:12856
assessed under KVAT tax regime - either
under COT or VAT scheme as applicable.
(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
NC: 2025:KHC:12856
works completed pre-GST are made post-
GST, the concerned employer has to 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 and also take
recourse to such remedies as available in law."
The afore-quoted judgment is followed by this Court in
W.P.No.107489 of 2024 disposed on 19-02-2025. In view
NC: 2025:KHC:12856
of the judgments as quoted supra, this petition also deserves to
succeed. Hence, the following:
ORDER
(i) The Writ Petition is allowed.
(ii) The respondents are hereby directed to reimburse
the GST amount, as indicated in the representation
dated 21-11-2024, within a period of six weeks
from the date of receipt of the copy of this order.
Consequently, I.A.No.1 of 2025 also stands disposed.
Sd/-
(M.NAGAPRASANNA)
JUDGE
BKP
