Proceedings issued by the 3rd respondent are liable to be set aside wherein and whereby the petitioner’s representation not to collect GST 18% on monthly licence fee collected from the petitioner for the work of contract of maintenance of toilets in addition to the monthly licence fee is treated as illegal, arbitrary and contrary to the exemption.
GST on Works Contract ––Maintenance of Toilets -- The petitioner prayed for writ of mandamus declaring the action of the respondents coroporation in demanding the petitioner to pay GST vide letter dated 28-02-2019, in respect of its business for the work of contract of maintenance of toilets in the Bus Station including all offices of the Bus Station on a monthly licence fee. The petitioner counsel submitted that as per the notifications, the payment of GST was exempted under Heading 9994 at S.No.76 which refers to “Service by way of public conveniences such as provision of facilities of bathroom, washroom, lavatories, urinal or toilets”. The court observed that as per clause 47 of the licence deed, the petitioner is liable to pay 18% towards GST. But, as per Notification No.12/2017- Central Tax (Rate), dated 28-06-2017 “Services by way of public convenience such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets” are exempted from payment of GST. Accordingly, the work contract of maintenance of toilet blocks awarded to the petitioner comes within the purview of the exemption granted by the Central Government as well as the State. The 3rd respondent issued the said proceedings only based on the licence deed and without reference to the Notification.
Held that:- The Hon’ble High Court set aside the impugned proceedings dated 28.02.2019 with costs of Rs. 5,000/- payable by the respondent, within a period of four weeks. However, the petitioner is given liberty to make a representation for refund of GST amount collected from the petitioner.
Proceedings issued by the 3rd respondent are liable to be set aside wherein and whereby the petitioner’s representation not to collect GST 18% on monthly licence fee collected from the petitioner for the work of contract of maintenance of toilets in addition to the monthly licence fee is treated as illegal, arbitrary and contrary to the exemption.
GST on Works Contract ––Maintenance of Toilets -- The petitioner prayed for writ of mandamus declaring the action of the respondents coroporation in demanding the petitioner to pay GST vide letter dated 28-02-2019, in respect of its business for the work of contract of maintenance of toilets in the Bus Station including all offices of the Bus Station on a monthly licence fee. The petitioner counsel submitted that as per the notifications, the payment of GST was exempted under Heading 9994 at S.No.76 which refers to “Service by way of public conveniences such as provision of facilities of bathroom, washroom, lavatories, urinal or toilets”. The court observed that as per clause 47 of the licence deed, the petitioner is liable to pay 18% towards GST. But, as per Notification No.12/2017- Central Tax (Rate), dated 28-06-2017 “Services by way of public convenience such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets” are exempted from payment of GST. Accordingly, the work contract of maintenance of toilet blocks awarded to the petitioner comes within the purview of the exemption granted by the Central Government as well as the State. The 3rd respondent issued the said proceedings only based on the licence deed and without reference to the Notification.
Held that:- The Hon’ble High Court set aside the impugned proceedings dated 28.02.2019 with costs of Rs. 5,000/- payable by the respondent, within a period of four weeks. However, the petitioner is given liberty to make a representation for refund of GST amount collected from the petitioner.