Petra Buildcare Products vs. Natibal Thermal Power Corporation Ltd
(Madhya Pradesh High Court, Madhya Pradesh)

Case Law
Petitioner / Applicant
Petra Buildcare Products
Natibal Thermal Power Corporation Ltd
Madhya Pradesh High Court
Madhya Pradesh
Aug 5, 2019
Order No.
TR Citation
2019 (8) TR 1930
Related HSN Chapter/s
Related HSN Code



The petitioner was awarded the contract for auctioning of Ash Pond for collection and sale of cenosphere at NTPC Vindhyachal for the period of one year as per letter Annexure P/1 dated 4.1.2019.

The contention of the petitioner is that he was depositing GST as per 18% in terms of the award of contract. It has come to know, the said percentage of GST has been reduced as per notification (Annexure P-3) issued by the Government of India, Ministry of Finance dated 10.11.2017.

Though the award was made as per 18% of GST, but it is not in conformity to the government notification. It is argued that as per government notification, petitioner is required to deposit 5% amount of GST, even then department by the correspondences said that in case petitioner would not deposit 18% GST regularly and further deposit difference of 13% of GST, the respondent shall take coercive action to stop the work of the petitioner. It is also the contention of the petitioner that representation submitted by the petitioner has not been decided and kept pending on the pretext that it is under scrutiny with the management as well the Finance Department of NTPC. In view of the said submission it is urged that the NTPC Management and Finance Department may be directed to decide the said issue as expeditiously as possible and till then, he may be permitted to deposit the amount of GST @ 5% as per the notification of the Central Government and the respondents be restrained from taking any coercive action against him asking deposit of difference of GST @ 13% subject to taking surety.

After hearing learned counsel for the petitioner at length, at present in place of issuing notice to other side, without expressing any opinion on the merits of the case, it would be appropriate to dispose of the writ petition with a direction to petitioner to deposit GST in the matter of contract for auctioning of Ash Pond for collection and sale of cenosphere at NTPC Vindhyachal at the rate of 5% as per government notification subject to furnishing the surety for remaining 13% GST, subject to decision taken by the respondents deciding the representation. The respondents shall take decision on the representation within a period of one month from the date of communication of this order on consideration of the government notification.

If the representation is decided by the respondents against the petitioner, he would be at liberty to challenge the same in the higher forum. Till the decision is taken by the Management of NTPC and Finance Department, no coercive steps be taken against the petitioner subject to compliance of the condition as observed hereinabove.

With the aforesaid observation and direction the writ petition petition is disposed of.

Certified copy by 9.8.2019.

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