K Hussain Basha Works Contractor vs. The State Of Ap
Held
The High Court directed the respective departments to ascertain and release the GST amount payable to the petitioner within four months. It set aside the assessment order dated 26.12.2025 and remanded the matter to the assessing authority to reconsider the levy of interest and penalty, particularly under Section 74 of the GST Act, taking into account the alleged default by government agencies.
Facts
A works contractor challenged an assessment order for the year 2021-22, alleging non-service of a show cause notice, incorrect application of an 18% GST rate instead of 12% for government works, and consequential interest and penalty. The petitioner contended that the non-payment of GST was due to the default of government agencies.
Key Issues
The key issues were the validity of the assessment order due to alleged non-service of notice, the correct GST rate applicable to the works contract, and whether interest and penalty should be remitted considering the government agencies' delay in paying the GST amount.
Sections Cited
Section 169, Section 74
AI-generated summary — verify with the full judgment below
APHC010098472026
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] TUESDAY,THE FIFTH DAY OF MAY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 12449/2026 Between:
K HUSSAIN BASHA WORKS CONTRACTOR, KOTANANDURU, GST - 37AMFPK3500J1Z8 REP. BY ITS PROPRIETOR, MR. K.H. BASHA KOTAKANDURU VILL. ALLAGADDA TALUK NANDYAL, KURNOOL DISTRICT ANDHRA PRADESH, PIN -518543
...PETITIONER AND 1. THE STATE OF AP, 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, KUNCHANAPALLI-522501, GUNTUR DISTRICT ANDHRA PRADESH.
THE ASSISTANT COMMISSIONER ST, NANDYAL-I CIRCLE, D.N0.25/3A AND 3B, MSR COMPLEX, OPP APSRTC BUS STAND, NANDYAL -518501 KUNROOL (NANDYAL) DISTRICT, ANDHRA P
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