Synopsis: The Madhya Pradesh HC in the matter of Petra Buildcare Products vs Natibal Thermal Power Corporation Ltd., has disposed writ in view of pending decision by the management of NTPC deciding the representation made by Petitioner w.r.t. rate of GST applicable on impugned supply – 18% GST, later reduced to 5%. Accordingly, directed the Petitioner to deposit GST @ 5% as per government notification subject to furnishing the surety for remaining 13% GST with direction that no coercive steps be taken against the Petitioner till the decision is taken by the Management of NTPC.
Facts:
M/s Petra Buildcare Products (“the Petitioner”) has been awarded the contract for auctioning of Ash Pond for collection and sale of cenosphere at NTPC Vindhyachal (“NTPC” or “the Respondent”) for the period of one year.
The Petitioner is depositing GST @ 18%, but it is argued that the said rate is not in conformity with actual GST rate of 5% pursuant to subsequent reduction in GST rate. Even the department by correspondences said that in case the 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 the representation submitted by them 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.
Prayer(s) of the Petitioner:
- NTPC Management and Finance Department may be directed to decide the said rate issue as expeditiously as possible.
- Till the, the Petitioner 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.
Held:
The Hon’ble Madhya Pradesh High Court in W.P. No. 15864-2019 dated August 05, 2019 directed the 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.
It further directed the NTPC management to 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. Till the decision is taken by the Management of NTPC and Finance Department, no coercive steps be taken against the Petitioner.
Citation: [TS-676-HC-2019(MP)-NT]