M/S.Dharani Industries vs. The State Of Andhra Pradesh
Held
The High Court held that the issuance of assessment orders and consequential attachment proceedings while an interim stay order was in force constituted an overreach of the Court's authority and was highly deprecable. The Court found these actions untenable and quashed the attachment proceedings.
Facts
The petitioner challenged assessment orders passed under Section 73 and subsequent recovery proceedings, including attachment, initiated under Section 79 of the GST Act. These actions were taken by the tax authorities despite a subsisting interim order from the High Court, which had stayed all further proceedings pursuant to the original show-cause notice.
Key Issues
Whether tax authorities can issue assessment orders and initiate recovery proceedings under the GST Act when there is an existing High Court interim order staying further action on the underlying show-cause notice.
Sections Cited
Section 73, Section 79
AI-generated summary — verify with the full judgment below
Date of pronouncement : 30.06.2026 Date of uploading : 07.07.2026 APHC010326302026
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3543] TUESDAY, THE 30th DAY OF JUNE 2026 PRESENT THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 17103/2026 Between:
M/S.DHARANI INDUSTRIES,, SRI RUKMINIPURAM VILLAGE, PILLUTLA, MACHAVARAM MANDAL PALNADU DISTRICT,
(FORMERLY GUNTUR DISTRICT), REP. BY ITS MANAGING PARTNER, N. ANTHA REDDY
...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY,COMMERCIAL TAXES DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. - 522503
JOINT COMMISSIONER ST, NARASARAOPET DIVISION, PALNADU DISTRICT (FORMERLY GUNTUR DISTRICT).-522601
THE DEPUTY ASSISTANT COMMISSIONER STI, PIDUGURALLA CIRCLE, NARASARAOPET DIVISION, PALNADU DISTRICT (FORMERLY GUNTUR DISTRICT).-522413
STATE BANK OF INDIA, D NO 7, OPP GANGAMMA TEMPLE, 319, MUTYALAMPADU - MACHERLA RD, GUNTUR, PIDUGURALIA, ANDHRA PRADESH 522413
...RESPONDENT(S): Petition under Article 226 of the C
The judgment continues below.
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