The Madhya Pradesh High Court has directed the Election Commission authorities to release Rs. 5,18,462 along with interest at 6% per annum to a contractor from whom the GST component was deducted from the bill despite the acceptance letter specifically providing that GST at 18% would be payable in addition to the quoted rates. The ruling by Justice Milind Ramesh Phadke in WP No. 38881/2025 (Prabhat Tent House v. Election Commission of India, decided 08.09.2026) holds that the respondents, having accepted the bid on stated terms and having accepted performance of the contract, cannot subsequently adopt an interpretation reducing the contractual consideration.
The petitioner had provided lights, tents, chairs and other items for the Vidhan Sabha Election 2018 in District Bhind. The acceptance letter expressly stated GST at 18% would be payable in addition to quoted rates. The petitioner performed the work, submitted bills and discharged his GST liability to the GST Department. However, while releasing payment, the respondents deducted the GST amount from the bill. The court rejected the respondents’ contention that this involved disputed questions of fact, holding that the question of the GST component could be decided from the documentary record. The court also rejected the delay objection, noting that the respondents themselves had reconsidered the calculation as late as August 2023.
- 2026-juristway.com-2588-HC(Madhya Pradesh)-GST | High Court of Madhya Pradesh | WP No. 38881/2025 | 08.09.2026