Bharatharajaiah Muthyala vs. Union Of INDIA
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APHC010570632024
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3529] WEDNE AY, THE EIGHTEENTH DAY OF MARCH TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 29849/2024 Between:
BHARATHARAJAIAH MUTHYALA, S/O. LATE. MUTHYALA SANJEEVAIAH,
AGED ABOUT 78 YEARS, MAIN ROAD, AMARAPURAM, ANANTAPUR DISTRICT, ANDHRA PRADESH.
...PETITIONER AND 1. UNION OF INDIA, MINISTRY OF FINANCE THROUGH ITS SECRETARY, 4TH FLOOR, A-WING, SHASTRI BHAWAN, NEW DELHI 110001. 2. THE SUPERINTENDENT CENTRAL TAX, HINDUPUR GST RANGE-I, HINDUPUR, ANANTAPUR DISTRICT, ANDHRA PRADESH.
THE SUPERINTENDENT CENTRAL TAX, GROUP-ILL AUDIT, TIRUPATI AUDIT CIRCLE, TIRUPATI, CHITTOOR DISTRICT, 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 declaring the impugned Order in Original dated 26-08-2024 in DIN 372909238240 for the periods 2017-18, 2019- 20 and 2020-21 followed by a summary dated 29-09-2023under section 74(9) as also the charge of interest under section 50 as also penalty equivalent to the tax as well as general penalty under section 125 of the Act preceded by the impugned show cause notice dated 31-01-2024 (vide Annexure -PI and P2) respectively issued by the Superintendent Central tax , Hindupur GST Range, Hindupur as also the 3rdRes namely Superintendent Central Tax Audit, Tirupati audit Circle, Tirupati as illegal, arbitrary, without authority of law,
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without juri iction and contrary to the provisions of the Act and after calling for the entire record and pass IA NO: 1 OF 2024 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 pleased to stay all further proceedings pursuant to the impugned order of 26- 08-2024 pending disposal of the writ petition and pass IA NO: 1 OF 2025 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 pleased to permit the in the accompanying affidavit filed by the Petitioner to bring on record copies of financial / non GST credit notes were issued towards incentives posterior to sale / supply However, some of the credit notes filed herewith as Annexure-P7and circular was issued by the Ministry of Finance on 09-02-2018 bearing No. 31-05-2018-GST whereby the functions under the CGST Act by segments of the Central Tax Officers were detailed in the table after paragraph 5 of the said circular filed herewith as Annexure-P8 or else the Petitioner would be put to serious loss and hardship and pass IA NO: 2 OF 2025 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 pleased to implead the proposed 4th and 5th Respondents as Respondent Nos. 4 and 5 in the writ petition and pass IA NO: 3 OF 2025 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 pleased to suspend the operation of the garnishee notice dated 21-01-2025 pending disposal of the writ petition and pass Counsel for the Petitioner:
M V J K KUMAR Counsel for the Respondent(S):
B V S CHALAPATI RAO
MANIKANTESWARA RAO KOTHA
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The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao)
Heard Sri M. V. J. K. Kumar, learned counsel for the petitioner and Sri Kotha Manikanteswara Rao, learned Junior Standing Counsel appearing on behalf of Sri B.V.S. Chalapathi Rao, learned Senior Standing Counsel for the respondents.
The petitioner is a registered Company, which has been served with an order of assessment, dated 26.08.2024, passed by the 2nd respondent. This order of assessment covers the period from 2017-18 to 2020-21. 3. The petitioner, after having raised various grounds of challenge, has pressed the ground that, a single order of assessment, issued for more than one financial year, would be violative of the provisions of Sections 73 & 74 of the GST Act, 2017 and consequently, set aside the impugned order of assessment.
A Division Bench of this Court, in W.P.Nos.11028 of 2025 & batch, after considering the said question, had held that, a single show-cause notice or a single composite assessment order, cannot be passed, in relation to more than one tax period of either a month if the assessment is taken up before the due date for filing of the annual return or for more than one year if the due date for filing of annual return has been reached.
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The petitioner has raised various grounds of challenge. However, the petitioner is pressing the primary ground of the order of assessment being a composite order of assessment. In that view of the matter, the present Writ Petition is being disposed of, on this ground of challenge, leaving open the other grounds of challenge.
Accordingly, this Writ Petition is disposed of, setting aside the impugned order of assessment, dated 26.08.2024 and remand back to the respondents, leaving it open to the respondents to initiate fresh proceedings, for each assessment year separately. Coercive steps taken against the petitioner, including attachment, for recovery of the dues under this order shall also stand set aside. Needless to say, the period from the date of issuance of the impugned order of assessment till the date of receipt of this order shall be excluded for the purposes of limitation. 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: 18.03.2026
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THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
WRIT PETITION NO: 29849 of 2024
Date: 18.03.2026
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Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.