State Govt.’s decision not to act upon tenders due to implementation of GST wasn’t illegal or arbitrary: HC

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Section 9 of the Central Goods And Services Tax Act, 2017 – Levy and collection of tax (Miscellaneous) – Assessee participated in a tender which was cancelled on ground that after implementation of Goods and Service Tax Act with effect from 1-7-2017, it was decided by State Government on 5-8-2017 that for future contracts, offers should be invited by excluding amount of GST – Whether since said decision of State Government was taken on account of change in tax environment, its decision could not be said to be illegal or arbitrary decision – Held, yes Whether further since letter of acceptance of contract was not communicated to assessee and it was not a concluded contract, assessee could not claim grant of contract – Held, yes

Citation: [2018] 91 taxmann.com 461 (Madhya Pradesh)