M Lakshmi Contractor vs. The State Of Andhra Pradesh
Held
The High Court directed the departments to ascertain and release the GST amount payable to the petitioner within four months. It set aside the impugned assessment order dated 30.01.2026 and remanded the matter to the assessing authority to reconsider the levy of interest and penalty, specifically whether Section 74 of the GST Act could be invoked.
Facts
M Lakshmi Contractor challenged an assessment order for the period 2024-25, alleging non-service of show cause notice under Section 169 of the CGST Act, levy of 18% GST instead of 5%, and imposition of interest and penalty due to the government's delayed payment of GST for contracts executed.
Key Issues
Whether the assessment order was validly passed without serving show cause notice; whether the correct GST rate was applied; and whether interest and penalty could be levied when the delay in tax payment was attributable to government agencies.
Sections Cited
Section 169, Section 74
AI-generated summary — verify with the full judgment below
APHC010249342026
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] WEDNESDAY, THE SEVENTEENTH 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: 13091/2026 Between:
M LAKSHMI CONTRACTOR, GUNDUPAPLA, GST -37ADPL6840F1ZV REP. BY ITS PROPRIETOR, MR. M. LAKSHMI D.NO.1-132, GUNDUPAPALA NANDYAL - 518134, KURNOOL DISTRICT. ANDHRA PRADESH
...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL SECRETARY, REVENUE (CT) DEPARTMENT, AP SECRETARIAT, VELAGAPUDI -522503, AMARAVATHI, GUNTUR DISTRICT, A.P
UNION OF INDIA, REP. BY ITS SECRETARY MINISTRY OF FINANCE, 4TH FLOOR, A-WING, SHASTRI BHAVAN NEW DELHI - 110001. 3. THE CHIEF COMMISSIONER OF STATE TAXES, VIJAYA ELITE, KUNCHANAPALLE SERVICE ROAD, D.NO. 12-468/4, ADJACENT TO NH-16 VIJAYA ELITE, KUNCHANAPALLE SERVICE ROAD, KUNCHANAPALII-522501, GUNTUR DISTRICT ANDHRA PRADESH.
THE DEPUTY ASSISTANT COMMISSIONER ST, NANDYAL-LL CIRCLE, D.NO.25/3A AND 3B, MSR COMPLEX, OPP APSRTC BUS STAND, NANDYAL -518501 KUNROOL (NANDYAL) DISTRICT, ANDHRA PRADE
The judgment continues below.
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