- 1 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR WRIT PETITION NO. 4971 OF 2025 (T-RES) BETWEEN: 1. M/S B.H. GANGADHARACHAR CONTRACTOR A SOLE PROPRIETORSHIP REGISTERED UNDER THE GST ACT 2017, BOOVANAHALLY VILLAGE, BOOVANAHALLI POST, HOLENARASHIPURA TALUK, HASSAN DISTRICT – 573 211. GSTIN: 29AEUPG9475K1ZF REPRESENTED BY ITS PROPRIETOR, BOOVANAHALLY HONNACHARY GANGADHARACHARY …PETITIONER (BY SRI. KANISHK RAVINDRAN, ADVOCATE) AND: 1. STATE OF KARNATAKA DEPARTMENT OF FINANCE, 2ND FLOOR, VIDHANA SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU - 560 001. REPRESENTED BY ITS ADDITIONAL CHIEF SECRETARY. Digitally signed by SREEDHARAN BANGALORE SUSHMA LAKSHMI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 2. EXECUTIVE ENGINEER, CNNL NO.1, H.R.B.H.L.C. DIVISION, HOLENARASIPURA, HASSAN DISTRICT - 573 120. …RESPONDENTS (BY SRI.K HEMA KUMAR, AGA FOR R1; SRI. B R PRASHANTH, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OR SUCH OTHER ORDER IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO PAY/REIMBURSE GST @ 12% FOR EACH OF THE WORKS CONTRACT/COMPOSITE SUPPLY EXECUTED BY THE PETITIONER AT ANNEXURE A SERIES. IN THE ALTERNATIVE, ISSUE A WRIT OR SUCH OTHER ORDER IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO CONSIDER THE REPRESENTATION OF THE PETITIONER DATED 31.07.2023 AND PRODUCED AS ANNEXURE-E AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In this petition, the petitioner seeks the following reliefs:- (a) Issue a writ or such other order in the nature of mandamus directing the Respondent No.2 to Pay/Reimburse GST @ 12% for each of the works contract/composite supply executed by the petitioner at Annexure A series. - 3 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 (b) In the alternative Issue a writ or such other order in the nature of Mandamus directing the Respondent No.2 to consider the Representation of the Petitioner dated 31.07.2023 and produced as Annexure-E. (c) Pass such other orders as may be deemed appropriate under the circumstances of the case, in the ends of justice.” 2. Learned counsel for the petitioner submits that the present petition is directly and squarely covered by the judgment of this Court in the case of UNIQUE CONSTRUCTIONS & Others v. STATE OF KARNATAKA & Others1, wherein the earlier judgments of this Court in Sri. Chandrashekaraiah and others Vs. The State of Karnataka - W.P.No.9721/2019 and connected cases dated 11.04.2023 and Shri. M.G. Arunkumar Vs. The State of Karnataka and another - W.P.No.104908/2023 dated 29.08.2023, were followed and appropriate orders were passed by this Court. 3. Per contra learned counsel for the respondent No.2 submits that if the petitioner appears before the respondent No.2 on a given date and submits all necessary documents, the 1 Writ Petition No.27637/2023 DD 25.07.2024 - 4 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 respondent No.2 shall consider the claim/representation of the petitioner and proceed further in accordance with law. The submission is placed on record. 4. The order in the case of UNIQUE CONSTRUCTIONS, supra, reads as under:- “In this petition, petitioner seeks for the following reliefs: “(a) Issue a writ or such other order in the nature of mandamus directing the respondents to refund the differential GST amount paid by the Petitioners for the works executed by each of the Petitioners respectively, as per the representations dated 06.07.2023, 07.07.2023, 11.07.2023, 17.07.2023 etc., given by the Petitioners-Contractors to respective Respondent- employers (as per the abstract Annexed) and produced at annexure-B, B-1 to B-29. (b) Issue a writ or such other order directing the respondent No.1 – State Govt, to issue a circular/policy to address the issue of payment of GST on works contract which are executed under VAT regime wherein, GST is not paid by the Respondent-Employers but is levied and paid by the petitioner-Contractors to the GST department. c)pass such other orders as may be deemed appropriate under the circumstances of the case, in the ends of justice.” 2. Heard Sri. Naveen G.S., learned counsel appearing for the petitioner, Sri S.H.Raghavendra, learned AGA appearing for respondent No.1 and Sri K.S. Bheemaiah, learned counsel for respondent Nos.2 and 3 and perused the material on record. 3. Learned counsel appearing for the petitioner submits that the prayer that is sought is to be allowed in the light of the - 5 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 law laid down by this Court in the case of Sri. Chandrashekaraiah and others Vs. The State of Karnataka - W.P.No.9721/2019 and connected cases dated 11.04.2023 and wherein it is held as under: "20. In the result, I pass the following:- ORDER (i) Petitions are hereby disposed of. (ii) The Respondents-State and other Govt agencies / Respondents who have entered into works contract with the Petitioners are issued the following directions / guidelines:- (a) Calculate the works executed pre- GST (prior to 01.07.2017) under KVAT regime and payments received by the Petitioners. (b) The payments received by the Petitioners pre-GST for such of the works executed before 01.07.2017 are to be assessed under KVAT tax regime – either under COT or VAT scheme as applicable. (c) Calculate the balance works to be completed or completed after 01.07.2017, in the original contract. (d) Derive the rate of materials, KVAT items required or used to complete the balance works. (e) Deduct the "KVAT" amount from those materials and the service tax, if applicable. (f) Add the applicable "GST" on those items. (g) Input Credit on the materials is to be arrived at and be set off as against the output GST, for those assessed under regular VAT. (h) Further, the “tax difference” should be calculated on such balance works executed or to be executed after 01.07.2017 separately. (i) Based on the result obtained on calculation of the tax difference on the - 6 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 contract value, concerned department/ authority has to decide whether agreement needs to be changed or not. (j) A supplementary agreement may be signed with the Petitioners for the revised GST-inclusive work value for the Balance Work completed or to be completed as determined above and in case the revised GST-inclusive work value for the Balance Work, completed or to be completed after 01.07.2017, is more than the original agreement work value, the Petitioners are to be paid /reimbursed, as the case may be, the differential tax amount by the concerned employer; so also, in case payments for works completed pre-GST are made post-GST, the concerned employer has to pay or reimburse, as the case may be, the differential tax amount, to the Petitioners. (iii) Petitioners are directed to submit comprehensive representations to the respective employers/Respondents within a period of 4 weeks from the date of receipt of a copy of this order, irrespective of whether they have completed the works pre-GST or post-GST or payments were received or yet to be received post-GST. (iv) If such representations are submitted, the respective employers/Respondents are directed to consider and dispose of the same in the light of the aforesaid directions / guidelines as expeditiously as possible and at any rate within a period of 8 weeks from the date of submission of the representations. (v) In view of the interim orders passed by this Court in the present petitions, such of the petitioners who had not filed their GST returns during the period after 01.07.2017 are permitted to file their returns / amended returns, pursuant to the calculation of the differential tax as per procedure above under GST regime, without insisting on interest or penalty or limitation. - 7 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 (vi) The GST authorities are also directed not to take precipitative action against the Petitioners for a period of 6 months from the date of receipt of a copy of this order. (vii) Liberty is reserved in favour of the petitioners to challenge any order / decision passed / taken by the respondents or the authorities, subsequent to this order and also take recourse to such remedies as available in law." 4. A Co-ordinate Bench of this Court in the case of Shri. M.G. Arunkumar Vs. The State of Karnataka and another - W.P.No.104908/2023 dated 29.08.2023 followed the aforesaid order and allowed the petition. The Co-ordinate Bench has held as follows: "5. It is not in dispute that the entire tender process and allocation of work by respondent/Department is post coming into force of Goods and Services Tax. If petitioner, who is a registered Civil Contractor has completed the tender work, respondent/Department being a service recipient is under bounden duty to reimburse GST amount of Rs.2,16,51,903/- in terms of Section 13 of The Central Goods and Services Tax Act, 2017. It is also not in dispute that petitioner, who is a class-I contractor having rendered service, is under mandatory duty to pay GST amount to the department. Equally respondent/Department is under bounden duty to reimburse the GST amount. It is borne out from the records that since necessary payment at the petitioner's end the applicable GST being statutory requirement, the respondent/Department ought to have reimbursed 12% GST amount on the total work done by petitioner. Since, there is total inaction on the part of respondent/Department, this is a fit case where mandamus needs to be issued. For the reasons stated supra, I proceed to pass the following: ORDER i) Writ petition is allowed. - 8 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 ii) The respondent is hereby directed to reimburse GST amount as indicated in the representation dated 15.04.2023 vide Annexure-E. iii) The respondent/Department shall reimburse the said amount within a period of six weeks from the date of receipt of copy of this order.” In the light of the issue having been answered by this Court as well as a co-ordinate Bench of this Court (supra), the petition deserves to be allowed. 5. For the aforesaid reasons, the following: ORDER i. The petition is allowed and disposed of in terms of the order passed by this Court in the case of Sri. Chandrashekaraiah and others Vs. The State of Karnataka - W.P.No.9721/2019 and connected cases dated 11.04.2023. ii. The concerned respondents are hereby directed to reimburse GST amount as indicated in the representations at Annexures – B to B29 back to the petitioner, within a period of six weeks from the date of receipt of a copy of this order.” 5. In view of the aforesaid facts and circumstances, I deem it just and appropriate to dispose of this petition. 6. Accordingly, I pass the following:- ORDER i. The Writ Petition is disposed of. ii. The petitioner is directed to appear before the respondent No.2 on 15.12.2025. - 9 - HC-KAR NC: 2025:KHC:49278 WP No. 4971 of 2025 iii. On that day i.e., on 15.12.2025, it is further directed that the petitioner shall submit relevant documents in support of his claim and also file additional representation, if any, pursuant to which, the respondent No.2 shall consider the representation/claim of the petitioner and proceed further in accordance with law, bearing in mind the judgments of this Court in the cases of UNIQUE CONSTRUCTIONS, CHANDRASEKHAR and M.G.ARUNKUMAR, referred to supra, and pass appropriate orders/take appropriate decision within a period of three months from 15.12.2025. Sd/- (S.R.KRISHNA KUMAR) JUDGE BSS List No.: 2 Sl No.: 2