M/S Manogna Enterprises, v. The State Of Telangana

[ 3166 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY NINTH DAY OF DECEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR WRIT PETITION NO: 35027 OF 2023 Between:

]t//s IvIANOGNA ENTERPRISES, (A Partnership Firm), H.No.8-3-678/4 F, Mounten View Apartments, Navodaya Colony, Srinagar Colony, Hyderabad - 500033, Telangana, Rep. by its Partner S. Mallikarjuna, S/o S. Nagendrappa, Aged about 35 years'

...pETrroNER AND

1. The State of Telangana, Municipal Administration and Urban Development Department, Secretariat Buildings, Hyderabad, Rep. by its Special Chief Secretary2. The Commissioner and Director of Municipal Administration (CDMA), State of Telangana, AC Guards, Hyderabad - 500004.

3. Nizamabad Municipal Corporation, Nizamabad - 503001, Rep. by its commissioner'

RESP.NDENTS Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ or Order or Direction more particularly one in the nature of a Writ of MANDAMUS, declaring the action of the 3rd Respondent herein in issuing Short Tender for Manpower Supply Services vide (1) Tender lD.485777, Tender Notice No.11/01, dated 2111212023, with Bid Submission daled 2311212023 and closing daled 3011212023 5.00 PM, for engaging of (30) Nos. Drivers on Outsourcing Basis for Circle lVA, lVB, V Area for lifting of Garbage and Shifting to Dumping Yard, Nagaram for the period 01lO1l2O24 lo 3111212024 i.e. (12 months) and (2) Tender 1D.485778, Tender Notice No.

11/02, dated 2111212O23, with Bid Submission dated 2311212023 and closing dated 3011212023 5.00 PM, for engaging of (30) Nos. Drivers on Outsourcing Basis for Circle l, ll, lll Area for lifting of Garbage and Shifting to Dumping Yard, Nagaram for the period 01lO1l2O24 to 3111212024 i.e. (12 months), without including GST component or without obtaining advance ruling as required under Section 97 (2) and Section 100(1) of the Central Goods and Services Tax Act, 20'17 and Consequently direct the 3rd Respondent herein to include GST component in the tenders or to obtain Advance Ruling under Section 97(2) and Section 100(1) of the Central Goods and Services Tax Act, 2017, in respect of the Tender Notices vide (1) Tender |D.485777, Tender Notice No.11l01 , daled 2111212023, with Bid Submission dated 2311212023 and closing daled 3011212023 5.

00 PM, for engaging of (30) Nos.

Drivers on Outsourcing Basis for circle lVA, lVB, V Area for lifting of Garbage and shifting to Dumping Yard, Nagaram for the period 0110112024 to 3111212024 i.e. (12 months) and (2) Tender |D.485778, Tender Notice No.1 1102, dated )llztzOZt. with Bid Submission dated 2311212023 and closing daled 3011212023 5.00 PM, for engaging of (30) Nos, Drivers on Outsourcing Basis for Circle l, ll, lll Area for lifting of Garbage and Shifting to Dumping Yard, Nagaram for the period 01 tO1 t 2024 to 31 I 1 212O24 i.e. ( 1 2 months), forthwith. lA NO: 'l OF 2023 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to direct the 3rd Respondent herein not to proceed with the short Tender Notices for Manpower Supply Services vide (1) Tender 1D.

485777, I ender Notice No.11/01, dated 21t1212023, with Bid Submission dated 2311212023 and closing dated 30t1212O23 5.00 PM, for engaging of (30) Nos. Drivers on Outsourcing Basis for Circle lVA, lVB, V Area for lifting of Garbage and Shifting to Dumping Yard,. Nagaram for the period 011O112024 to 3111212024 i.e. (12 months) and (2) Tender |D.485778, Tender Notice No.11i02, dated 2111212023, with Bid Submission dated 23t1212O23 and closing daled 3011212023 5.00 PM, for engaging of (30) Nos. Drivers on Outsourcing Basis for Circle l, ll, lll Area for lifting of Garbage and Shifting to Dumping Yard, Nagaram for the period 01lO1l2O24 to 3111212024 i.e.

(12 months), till the GST component are included in the tenders or till obtaining Advance Ruling under Section 97(2) and Section 100(1) of the Central Goods and Services Tax Act, 2017, pending disposal of the above Writ Petition. Counsel for the Petitioner: SRI K.R.SASIDHARAN NAIR Counsel forthe Respondent Nos.1 & 2: GP FOR MCPLADMN & URBAN DEV Counsel for the Respondent No.3: SRI V.

TI{E HON'BLE SRI JUS'TICE T. VINOD KUMAR WRIT PETITTO NNo.35027 of2023 ORDER:

The petitioner lras challenged in the present Writ Petition the action o1- respondenl No.3 in issuing Short Tender for supply services of vide Tender lD:485777 , Tender Notice No. 1 I /01 dated 2l-12-2023 for provision of manpower services of 30 numbers of drivers on outsourcing basis for Circle IVA, IVB, V area for lifing of garbage and shifting to Dumping Yard, Nagaram for the period lrom 01-01-2024 to 3l-12-2024 and similarly providing 30 numbers ol drivers vide Tender ID No-485778 Tender Notice No. I I /02 without including GST component or without obtaining advance ruling as required under Section 97 (2) and Section 100(1) of the Central Goods and Services Tax Act, 2017, as being iltegat and arbitrary.

2. Heard learned counsel lor petitioner, learned Government Pleader lor Municipal Administration and Urban Development appearing on behatf of respondent Nos'l and 2 and Sri V'Satyam Reddy, learned Standing Counsel appearing on behatf ofrespondent No.3 and perused the record. With the consent of .,,}--.,

learned counsel appearing for the parties, the Writ petition is taken up for hearing and disposal at the admission stage.

3. Petitioner contends that in the tender document issued by respondent No.3 authority for supply of rnanpower services of drivers, the authorities did not include the GST component payable on the consideration received l.or supply of manpower, which activity is liabte to tax under the provisions of the Goods and Services Act,2017 (for short .the Acr,).

4. Learned Standing Counsel appearing on behalf of respondent No.3 on the other hand submits thal the tenderers are required to quote the price including rhe tax ancl therefore the craim of the petitioner that the CST componcnt has not been included in the tender document is incorrect.

I have taken note of respective contentions urged.

6. A perusal of the clause_g of the Tender Document specifies that the terms and conditions of the tender are available online and can be downloaded. The terms and conditions of the aforesaid tender as placed before this Court indicates that the tender provides for inclusion and exclusion of various taxes lrom consideration. Claisarl+ of the said condition states as under:

11. Note d) ln casa o/'Securitt' Cuords /itr cvery 6 (.six) days o./ duty of parsonncl one tla.y rll/ rith putment v,itl bc git,en The tenderer v'ill have to hear cost ol providing personnel Jbr this weekly olf. I'he total monthly rates quoted shall inclusive of all these, including profils, overheads, bonus, gratuity etc and laxes whatsoever paylble. "

7 . A reading of the aloresaid clause shows that the same covers two aspects of 'l-endel i.c. (i) relating to Security Guards and (ii) relating to quoting of rarcs and its inclusions and exclusions. This would be evident from indication ol clause (a) under the heading 'Note' which is applicablc in r.clation to weekly off to be allowed lor Security Guards.

I I I{owever, it is to bc noted that due to omission to mention (b) therealier in relation to inclusion of taxes in the price quoted cannot be considercd as only in rclation to clause (a).

9. '[he albresaid clausc ol'thc tender condition clearly takes in its ambit, be it direct tax or indirect taxes payable by the successful tenderers on being awarded with the contract.

10. 'Ihus, the rnonthly rares quoted shall be inclusive of profits, overheads, bonus, gratuity etc. and taxes whatsoever applicable even in relation to the ntanpower services lor which the impugned tender is issucd

I 1. Since the petitioner claims that the tender conditions does not include GST componcnt payable, which as noted abovc, appears to be contrary to the tender conditions, this Courl is of the view that no case is made out for grant of any relief in the Writ Petition.

12. Thus, Writ Petition is dcvoid ol rnelits and it is accordingly dismissed. No costs

13. As a sequel, miscellaneous petitions pending if any shall stand closed SO/. K.SREERAMA MURTHY ASSISTANTR,EGISTRAR \,, ,,, 4,/ SECTION OFFICER I //TRUE COPY// To One CC to SRI K.R.SASIDHARAN NAIR, Advocate [OPUC] Two CCs to GP FOR MCPL ADN/N & URBAN DEV, High Court for the State of Telangana at Hyderabad. [OUT] One CC to SRI V.SATYAM REDDY, SC FOR MPCL [OPUC] Two CD Copies PSK.

GJ

HIGH COURT DATED:2911212023 A STAIE o I ( q i;) oo JIN 2t2[ t- , r'.

ORDER

i--_l t"\'- WP.No.35027 ot 2023 DISMISSING THE WRIT PETITION WITHOUT COSTS.

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