Judgment
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:
1. 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 2. 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.
4. 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 PRADESH.
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5. THE EXECUTIVE ENGINEER, WATER RESOURCES DEPARTMENT, M.L WORKS DIVISION, NANDYAL, KURNOOL-518004, ANDHRA PRADESH
...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 topleased to issue an appropriate writ order or direction particularly in the nature of Writ of MANDAMUS - (a)declaring the action of the 4th Respondent in passing the assessment order dated 26.12.2025 for the year 2021-22, without serving the show cause notice, which was not even signed either physically or digitally and not affixed the document identification number, as illegal, arbitrary, contrary to law and the provisions of Section 169 of the GST Act, and consequently set aside the same (b)declaring the action on the part of the 4th Respondent dated 26.12.2025 for the tax period 2021- 2022 under CGST /APGST Acts 2017 levying higher rate of tax @ 18per without any basis or foundation in contrast to the tax @ 12per as granted by the Government Andhra Pradesh for Neeru Chettu Programme as well as the consequential levy of interest as also penalty without considering the payments already made @ 12per as illegal, arbitrary, improper, unfair, capricious , without authority of law and without jurisdiction and violating articles 14, 19(1)(g) 21 and 265 and 300-A of Constitution of India (c)or to direct the 5th Respondent to pay the balance of tax, penalty and interest and consequently to set aside the same and pass 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 the collection of differential tax @ 6% as well as the corresponding interest and penalty pursuant to the impugned order dated pending disposal of the writ petition and pass Counsel for the Petitioner:
1. SRINIVASA RAO KUDUPUDI Counsel for the Respondent(S):
1. GP FOR IRRI AND CAD 2. GP FOR COMMERCIAL TAX
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The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao)
This Writ Petition arises out of facts similar to the facts in W.P.No.42350 of 2018 and batch, which had been disposed of by a Division Bench of this Court, dated 17.09.2024.
In the circumstances, this Writ Petition is disposed of with the following directions:
1. The respective departments are directed to ascertain and release the G.S.T amount payable to the petitioner on account of the contracts executed by him, on or before 15.06.2026.
2. The said exercise should be completed within a period of four months from the date of receipt of this order.
3. As far as the interest and penalty are concerned, it would be open to the petitioner to approach the appropriate authority under the G.S.T.
Act for remission of payment of interest or penalty, taking into account the special circumstances of this case and after taking into account the fact that non-payment is said to be on account of the default of the Government agencies in paying the G.S.T in time.
4. For the purpose of deciding the question of payment of interest and penalty under Section 74 of G.S.T Act can be invoked or not, the order of assessment, dated 26.12.2025, passed by the Assessing Authority, is set aside, and remanded the matter back to the assessing authority for considering this aspect.
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There shall be no order as to costs.
As a sequel, pending miscellaneous applications, if any, shall stand closed.
_______________________ R RAGHUNANDAN RAO, J
________________ T.C.D. SEKHAR, J
Date: 05.05.2026 KPV
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260
THE HON’BLE SRI JUSTICE R RAGHUNANDAN RAO
AND
THE HON’BLE SRI JUSTICE T.C.D. SEKHAR
WRIT PETITION NO: 12449 of 2026 (per Hon’ble Sri Justice R. Raghunandan Rao)
05.05.2026
KPV