- 1 - NC: 2025:KHC-D:3439 WP No. 100344 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 100344 OF 2025 (T-RES) BETWEEN: M/S. SWEET HOME CONSTRUCTIONS REPRESENTED BY THE PROPRIETOR OF THE FIRM SRI. SHIVANAND R. SHETTY, AGED ABOUT 52 YEARS, HAVING ITS PLACE OF BUSINESS AT. NO.8, GROUND FLOOR, DATTATREYA COMPLEX, SAI MANDIR ROAD, KARWAR -581 306, KARNATAKA. …PETITIONER (BY SRI RAVIKIRAN P. PAWAR, ADVOCATE) AND: 1. THE GOVERNMENT OF KARNATAKA, REPRESENTED BY ITS ADDITIONAL CHEIF SECRETARY, DEPARTMENT OF FINANCE, 2ND FLOOR, VIDHANA SOUDHA, DR. AMBEDKAR VEEDHI, BANGALORE -560 001. 2. THE EXECUTIVE ENGINEER, NWKRTC, CE DEPARTMENT, CENTRAL OFFICE, HUBBALI-580023. …RESPONDENTS (BY SRI SHARAD V. MAGADUM, AGA FOR R1, SMT VEENA HEGDE, ADVOCATE FOR R2) Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - NC: 2025:KHC-D:3439 WP No. 100344 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA IS PRAYING TO 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 PETITIONER FOR THE WORKS EXECUTED BY THE PETITIONER AS PER THE REPRESENTATION DATED 21-11-2024 BEARING NO.REF. 080/SHC/LETTER/2024-25 GIVEN BY THE PETITIONER CONTRACTOR TO RESPONDENT NO.2 AS PER ANNEXURE-B; b) ANY OTHER RELIEF THAT, THE HON’BLE COURTS DEEMS IT FIT IN THE LIGHT OF THE FACTS AND CIRCUMSTANCES, IN THE ENDS OF JUSTICE. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. The petitioner is before this Court seeking the following relief: “i. To issue a writ or such other order in the nature of mandamus directing the respondents to refund the differential GST amount paid by the petitioner for the works executed by the petitioner as per the representation dated 21-11-2024 bearing No. REF. 080/SHC/LETTER/2024-25 given by the petitioner contractor to respondent No.2 as per Annexure-B. ii. Any other relief that, the Hon’ble Court deems it fit in the light of the facts and circumstances, in the ends of justice.” 2. Heard the learned counsel Sri. Ravikiran P. Pawar appearing for the petitioner, learned counsel - 3 - NC: 2025:KHC-D:3439 WP No. 100344 of 2025 Smt.Veena Hegde appearing for the respondent No.2 and the learned AGA Sri.Sharad A.Magadum representing the respondent No.1-State. 3. The learned counsel for the petitioner submits that the issue in the lis stands answered by a judgment rendered by a Coordinate Bench in W.P.No.9721/2019 connected with matters disposed on 11.04.2023, which reads as follows: "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 preGST 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. - 4 - NC: 2025:KHC-D:3439 WP No. 100344 of 2025 (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 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 - 5 - NC: 2025:KHC-D:3439 WP No. 100344 of 2025 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. (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 - 6 - NC: 2025:KHC-D:3439 WP No. 100344 of 2025 and also take recourse to such remedies as available in law." 4. In that light, the petition deserves to succeed with the same order. 5. For the aforesaid reasons, the following: ORDER i. The petition is allowed. ii. The respondents are hereby directed to reimburse GST amount as indicated in the representation dated 21.11.2024. iii. The respondents/Department shall reimburse the said amount within a period of six weeks from the date of receipt of a copy of this order. Sd/- (M.NAGAPRASANNA) JUDGE KGK List No.: 1 Sl No.: 181