JAI BHAWANI CONSTRUCTION Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard learned counsel for the petitioners, learned counsel representing the State as well as learned Assistant Solicitor General representing the Union of India.

(2.) All these writ applications are raising a common question as to the effect of coming into force of the Goods and Services Tax Act (hereinafter referred to as the "GST Act, 2017") in respect of the tenders which were floated prior to coming into force of the Act of 2017 and in respect thereof the agreement i.e. the Standard Bidding Document (in short the "SBD") applicable in the Works Departments of the Government of Bihar contains Clause 35 which deals with the condition of reimbursement of levy/taxes if levied after receipt of the tenders. Similar provision is there in the Model Bidding Document (in short 'MBD').

(3.) The petitioners moved this court stating that they had participated in the tender process prior to coming into force of the GST Act, 2017, when Bihar VAT Act, 2005 was in force and applicable in relation to the contracts in question. According to the petitioners, after coming into force of the GST Act, 2017 it was incumbent upon the Works Department of the Government of Bihar to suitably amend Clause '35' of the conditions for reimbursement of levy/taxes if levied after receipt of tenders, as in absence of suitable amendments thereof the petitioners were being made liable to pay GST without there being any provision for reimbursement of the liabilities falling upon them by virtue of the implementation of the GST Act, 2017.