Judgment
APHC010381872026
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)
TUESDAY, THE 28th DAY OF JULY 2026 PRESENT THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 20470 OF 2026 Between:
1. Mahanandi Irrigation Systems, Having its office at Survey No.200/8 Rachana Palli Village, Near Intell College Boys Hostel Anantapur, Andhra Pradesh - 515001 Represented by its Managing Partner ...Petitioner AND 1. The Assistant Commissioner ST, Kalyanadurgam Circle, Anantapuramu Division Anantapur District, Andhra Pradesh 2. The Deputy Assistant Commissioner STI, Hindupur Circle, Floor, D.No.6-2- 203, A2, A3 Sri Nidhi Complex, D.L. Road, Hindupur - 515201 3. State of Andhra Pradesh, Represented by its Principal Secretary to Government, Revenue (State Taxes) Department, AP Secretariat Velagapudi, Amaravati, Andhra Pradesh 4. Union Bank of India, Main Road, Near Registrar office Ramnagar, Ananthapuramu Andhra Pradesh Rep. by Branch Manager ...Respondents Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be
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pleased tomay be pleased to issue a writ, order, or direction more particularly one in the nature of Writ of Mandamus declaring the impugned Order in Form GST DRC-07 bearing Ref. ZD3712250025761 dated 20.12.2025 for tax period April 2022 to March 2023 passed by the 1st Respondent and all audit proceedings by the 2nd respondent as arbitrary, illegal, without jurisdiction, without authority of law, passed in violation of the mandatory authorisation prescribed under Section 65(1) of the CGST/APGST Act, 2017, passed in gross violation of the principles of natural justice and in violation of 73(2) of the Act and set aside the same and all consequential proceedings including the Recovery Notice dated 03-07-2026 issued to Respondent No.4 and pass such IA NO: 1 OF 2026 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 may be pleased to stay all further proceedings pursuant to impugned Order in Form GST DRC-07 bearing Ref. ZD37122500257611 dated 20.12.2025 for tax period April 2022 to March 2023 passed by the 1st Respondent including stay of Recovery Notice dated 03-07-2026 issued to Respondent No.4 and pass Counsel for the Petitioner: MOHD MUKHAIRUDDIN Counsel for the Respondents:
The Court made the following order:
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THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
WRIT PETITION No: 20470 of 2026
ORDER: (per Hon’ble Sri Justice Ninala Jayasurya)
Heard learned counsel for the petitioner and Mr. S.A.V. Sai Kumar, learned Assistant Government Pleader for Commercial Tax appearing for respondent Nos.1 to 3. With their consent, the writ petition is disposed of at the stage of admission.
2.
Petitioner, a registered partnership firm engaged in the business of manufacturing drip pipes, mulching papers and allied agricultural/horticultural mechanical appliances, is an assessee on the rolls of respondent No.1 with GSTIN No.37AAYFM4640A1Z5. Aggrieved by the order dated 20.12.2025 passed by the 1st respondent and consequential proceedings dated 03.07.2026 initiated by the 2nd respondent, the present writ petition is filed.
3.
Learned counsel for the petitioner referring to various averments in the affidavit filed in support of the writ petition, inter alia contends that the petitioner filed explanations/objections to the Show-Cause-Notice dated 27.09.2025 in Form GST DRC – 01 issued by the 2nd respondent, however, the 1st respondent passed impugned order dated 20.12.2025 for the tax period 2022-23 under the provisions of GST Act, without considering the same, therefore impugned order is violative of principles of natural justice. Drawing the attention of this Court to page No.70 of the writ affidavit (medical
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certificate), he submits that only because of illness of managing partner of the petitioner firm, appeal under Section 107 of GST Act against the impugned order dated 20.12.2025, could not be filed in time. He submits that petitioner would suffer serious prejudice and great hardship if further steps are initiated to recover the amount, pursuant to recovery notice dated 03.07.2026.
4.
This Court has considered the submissions made and perused the material on record.
5.
In the usual circumstances, the matter would be kept pending and decided after counter is filed by the respondents. Instead of adopting such procedure, in view of medical certificate and considering the plea based on the same as also that the order under challenge is violative of principles of natural justice, we are inclined to dispose of the writ petition, however, by imposing a condition of deposit.
6.
Accordingly, the impugned order dated 20.12.2025 is set-aside, subject to condition of petitioner depositing 20% of disputed tax, within a period of four (4) weeks, from today. In the event, amount is not deposited within the stipulated time, order granted by this Court stands automatically dissolved.
7.
Further, if the petitioner deposits the disputed tax within the stipulated time, the 1st respondent shall issue appropriate Show-Cause-Notice, to which, the petitioner may file its objections and thereafter the assessment proceedings may be concluded, in accordance with Law.
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8.
Needless to say that the period from the date of passing of the impugned order till the date of receipt of this order shall be excluded for the purpose of limitation.
9.
In view of setting aside of impugned order, all consequential proceedings shall stand cancelled.
10.
With the above direction, the writ petition is disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, shall stand closed.
_____________________ NINALA JAYASURYA, J
_______________ T.C.D.SEKHAR, J
GVK
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141 THE HONOURABLE SRI JUSTICE NINALA JAYASURYA AND THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
WRIT PETITION No. 20470 of 2026
Dt. 28.07.2026
GVK