Cause title — parties, addresses and appearances
APHC010296932026
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI
(Special Original Jurisdiction)
[3529]
MONDAY,THE TWENTY SECOND DAY OF JUNE
TWO THOUSAND AND TWENTY SIX
PRESENT
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
WRIT PETITION NO: 15587/2026
Between:
1. M/S. SAI BHASKARA AGENCIES,, PRINCIPAL PLACE OF BUSINESS
AT
07-1-67/1,
NEAR
RELIANCE
FRESH,
SATYAPRASAD
COMPOUND, MVP COLONY,VISAKHAPATNAM - 530017, ANDHRA
PRADESH.
REPRESENTED
BY
ITS
PROPRIETOR
-
SRI
PENTAKOTA BHASKARA RAO. GSTIN 37BUEPP5070Q1ZW
...PETITIONER
AND
1. THE DEPUTY ASSISTANT COMMISSIONER ST, CHINAWALTAIR
CIRCLE, VISAKHAPATNAM-1 DIVISION, 1-106-13, KAVI HOUSE,
SECTOR-8, MVP COLONY, VISAKHAPATNAM-530017.
2. THE ASSISTANT COMMISSIONER ST, CHINAWALTAIR CIRCLE,
VISAKHAPATNAM-1 DIVISION, 1-106-13, KAVI HOUSE, SECTOR-8,
MVP COLONY, VISAKHAPATNAM- 530017.
3. THE JOINT COMMISSIONER ST, VISAKHAPATNAM-1 DIVISION, C.T.
COMPLEX,
DEENDAYATAPURAM,
CHINAGADILI,
VISAKHAPATNAM-530040.
4. THE CHIEF COMMISSIONER OF STATE TAX, VIJAYA ELITE, ADJ.
TO BYPASS ROAD TO NH-16, KUNCHANAPALLI-522501, GUNTUR
DISTRICT.
5. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS
PRINCIPAL SECRETARY, REVENUE (CT-II) DEPARTMENT, A.P.
2
SECRETARIAT BUILDINGS, VELAGAPUDI- 522237, GUNTUR
DISTRICT, ANDHRA PRADESH.
6. THE UNION OF INDIA, REPRESENTED BY ITS SECRETARY,
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH
BLOCK, NEW DELHI - 110001.
...RESPONDENT(S):
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
pleased to A) Issue a Writ of MANDAMUS, or any other appropriate writ,
order, or(a) direction, calling for the records leading to the issuance of the
impugned Order in Form GST DRC-07 bearing Reference No.
ZD370225008591L date 04-02-2025 (Ex.P-5) by the 2nd respondent and the
consequential Urgent Notice bearing DIN 3725032622822 dated 15-04-2026
(Ex.P-1) by the 1st Respondent, and after perusing the same, be pleased to
quash and set aside the same as being illegal, arbitrary, and without
jurisdiction b) Issue a direction, declaring that the demand of interest of under
Section 50(3) and penalty under Section 74 of the APGST/CGST Act, 2017, is
not sustainable in law where the ineligible Imput Tax Credit has been availed
but not utilized
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
To grant an interim stay on the operation, implementation, and execution of
the impugned Order in Form GST DRC-07 bearing Reference No.
ZD370225008591L dated 04.02.2025 (Ex.P-5) and the consequential
impugned Urgent Notice bearing DIN: 3725032622822 dated 15.04.2026
(Ex.P-1), and further direct the Respondents, their officers, servants, and
agents not to take any coercive steps for the recovery of the amounts
demanded therein
Counsel for the Petitioner:
1. C SANJEEVA RAO
Counsel for the Respondent(S):
1. GP FOR COMMERCIAL TAX
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The Court made the following Order: (Per Hon’ble Sri Justice R. Raghunandan Rao)
Heard Sri C.Sanjeeva Rao, learned counsel for the petitioner and the learned Government Pleader for Commercial Tax appearing for respondent Nos.1 to 5. 2. The petitioner has challenged the urgent notice, dated 15.04.2026 issued by the Assistant Commissioner (ST), Chinawaltair Circle, Visakhapatnam calling upon the petitioner to deposit Rs.12,42,726/- towards payment of interest and penalty on delayed payment of CGST and SGST for the period July 2017 – March 2018. 3. It is the contention of the petitioner that the CGST and SGST amounts due for the said period had been cleared by way of adjustment against Input Tax Credit available in the electronic credit ledger of the petitioner in period 24.01.2024 to 21.05.2024 and as such, no further amounts are due and payable.
4.In view of the aforesaid contention, it would be appropriate to dispose of this writ petition giving liberty to the petitioner to file a representation before the 2nd respondent to clarify whether any further interest or penalty would remain due as the amounts have been already been paid. The said application to be made within one (1) week from today. Upon such representation being made, the 1st respondent shall verify whether tax dues have been cleared within the permissible time and consequently whether the 4
interest and penalty are payable or not. This decision to be taken at the earliest preferably within three (3) weeks from the date of filing of the representation by the petitioner.
Needless to say that further steps for recovery on the basis of the order, dated 04.02.2025 and the consequential urgent notice, dated 15.04.2026 shall remain stayed till disposal of the representation of the petitioner.
As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J
_________________ T.C.D. SEKHAR, J
Date: 22.06.2026 KA
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THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
WRIT PETITION NO: 15587/2026 Date: 22.06.2026 KA
