Case Details: Kanthan Associates vs. State of Tamil Nadu - [2025] 181 taxmann.com 722 (Madras)
Judiciary and Counsel Details
- N. Sathish Kumar, J.
- Shrivirudishni V. for the Petitioner.
- V. Jeevagiridharan, Additional Government Pleader & D. Veerasekaran, Standing Counsel for the Respondent.
Facts of the Case
The petitioner was engaged in construction activities and participated in a competitive bid issued by the Tamil Nadu Housing Board (TNHB) for the construction of a commercial complex. It was awarded the work contracts, and in the payment certifications issued by TNHB, GST was initially applied at a reduced rate of 12% instead of the statutory rate of 18%. It was submitted that this discrepancy resulted in an underpayment of GST amounting to 6% for all work rendered and requested that TNHB disburse the difference, along with applicable interest and penalties that the GST Authority might levy. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that TNHB was to consider the representations and pass appropriate orders in accordance with law. It was observed that the statutory provisions under Section 14 of the CGST Act and the Tamil Nadu GST Act, entitled the petitioner to receive the difference of 6% GST along with applicable interest and penalties that might be levied by the GST Authority due to the discrepancy in rates. Accordingly, the Court directed TNHB to consider the petitioner’s claims and disburse the outstanding GST amount in line with statutory provisions.
List of Cases Referred to
- Subaya Constructions Company Ltd. v. Commissioner of Municipal Administration Chennai [2019] 110 taxmann.com 456/31 GSTL 414 (Madras) (para 7)
- Immanuel & Company v. Divisional Engineer (H) C & M [2022] 145 taxmann.com 517 (Madras) (para 7).
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