Department Required To Serve Notice upon Legal Representative of deceased before proceeding under GST Act: Allahabad High Court

The Calcutta High Court has recently dismissed writ petitions by M/s Kayal Construction, which had been awarded tenders floated by the state government, on the condition that the petitioner would bear expenses for all the taxes/cess payable.

Petitioners contended that the rates for the taxes/cess payable had been specified in the terms of contract, and that, due to the subsequent implementation of the Goods & Services Tax in 2017, they were compelled to bear additional expenses.

Through these petitions, they claimed a refund of the additional expenses made by them. Introduction of the GST regime has not taken away the certainty of price.

Even if the petitioner argues that the taxes have been enhanced, the same was factored into the original clauses of the contract.

Mere replacement of Sales Tax, Excise Duty, VAT and other similar taxes by the GST regime does not change such parameters in any manner.

In fact, even Sales Tax, VAT, Excise Duty and other levies specifically enumerated by way of example in the contract can very well be enhanced from time to time by the revenue authorities.