ORDER

The petitioner has approached this Court seeking its intervention for the purpose of restraining the respondent – North Central Railway Administration – to deduct any amount more than 2% in the name of tax from the bill of the writ petitioner.

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. According 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%}.

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 the work of railway at the rate of 12%, which was not and could not have been envisaged while the petitioner offered his rate.

The North Central Railway Administration has filed a counter affidavit. Paragraph – 19 of the said affidavit is relevant and is quoted hereinbelow :-

“That, the contents of the para No. 10 of the writ petition need no comments as it’s a comment prescribed under the Act. Moreover, it requires consideration. It is pertinent to point out here that the present GST Act enacted on 12.04.2017 and was came in to force on 01.07.2017 and subsequently the Letter of Acceptance (LOA) was issued on 28.07.2017 in which it is clearly mentioned that the “Supplier of Goods and / or Services would be a subject to GST Act and Rules as applicable from time to time” & Contract Agreement was executed on 13.11.2017. So that nothing is required to reply more in this regards. More over it’s policy matter of the Central Government.”

Considering the facts and circumstances of the instant case as stated above, there cannot be any manner of doubt whatsoever that the writ petitioner would be subject to tax as per the GST Act, which was enacted on 12th April, 2017. The petitioner has also received payment for work done. The prayer in the writ petition, therefore, cannot be considered by this Court. The writ petition is liable to be dismissed and stands accordingly, dismissed.