Facts: M/s. Bipson Surgical (India) (P.) Ltd. (“the petitioners”) is engaged in the business of manufacture and distribution of Surgical Dressing items such as Bandages, Gauze etc. Gujarat Medical Services Corporation Ltd (“GMSCL” or “the respondent”) is a procuring agency of Government of Gujarat which procures the drugs, surgical items etc. from different manufacturers and distributors for the supply of the same to the Government Hospitals throughout the State of Gujarat. The GMSCL invited the tenders from the eligible suppliers to supply different items. The petitioners awarded the contracts and were asked to supply 5 different items bearing Item Code 4006, 4024, 4009, 4010 and 4185. Therefore, the aggrieved petitioners filed Special Civil Application praying High Court that they may be permitted to revise the price in view of the change in the tax structure by introduction of the GST.
Held: The Hon’ble High Court of Gujarat vide its Special Leave Petition Application No. 16765, 16773 & 17991 of 2017 dated March 27, 2018 held that the liability to pay GST under the GST/CGST Act is upon the supplier. As observed here in above the price quoted and the rate contract was inclusive of all the levies and taxes. Therefore, the petitioners shall not be entitled to the revision of price as sought. Further, the VAT and Excise Duty have been deleted and instead the same is substituted by GST which may be at 12 per cent, the petitioners cannot claim the price revision on the aforesaid ground. As observed here in above, otherwise also the liability to pay VAT/Excise Duty, etc. was upon the suppliers. Therefore, the grant of any relief as prayed in the instant petitions would tantamount to varying terms and conditions of the tender documents/rate contracts which in exercise of powers under article 226 of the Constitution of India shall not be permissible.
Citation: [2019] 101 taxmann.com 197 (Gujarat)