BharatTaxGST

Katuri Rakesh vs. The State Of Andhra Pradesh

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WP/32053/2025HC Andhra PradeshGSTCNR APHC01061821202518 November 2025Bench: HARINATH.N4 pages
For Petitioner: Sri DASARI S V V S V PRASADFor Respondent: Ld. GP MUNCIPAL ADMN AND URBAN DEV AP, Ms. Sirisha Rani Vallabhaneni, Ld. Standing Counsel for R.3
AI SummaryDismissed

Facts

Petitioners operating a gym on leased premises are in arrears of rent, exacerbated by the COVID-19 pandemic. The respondent issued a notice demanding payment of outstanding lease amounts, enhanced lease amounts, and GST, threatening eviction.

Held

The Court did not interfere with the respondent's notice but directed the petitioners to clear their rent arrears within two months. The respondent was instructed to consider the petitioners' request for lease extension based on the relevant Government Order.

Key Issues

Whether the respondent can demand GST on lease amounts when the petitioners are seeking a waiver for the COVID period and are willing to pay a reduced rent. Whether the petitioners are entitled to time to clear their rent arrears before eviction.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
APHC010618212025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] WEDNESDAY, THE NINETEENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 32053/2025 Between: Katuri Rakesh and Others ...PETITIONERS AND The State Of Andhra Pradesh and Others ...RESPONDENTS Counsel for the Petitioners: 1. Sri DASARI S V V S V PRASAD Counsel for the Respondents: 1. Ld. GP MUNCIPAL ADMN AND URBAN DEV AP 2. Ms. Sirisha Rani Vallabhaneni, Ld. Standing Counsel for R.3. The Court made the following: -2- W.P. No.32053 OF 2025 Date of order: 19.11.2025 THE HON’BLE SRI JUSTICE HARINATH.N WRIT PETITION No.32053 OF 2025

ORDER:

1.

The petitioners are aggrieved by the issuance of the notice, dated 15.05.2025, by the 3rd respondent, whereby they were called upon to pay the balance outstanding lease amount and the enhanced lease amount along with GST.

2.

The learned counsel for the petitioners submits that the petitioners are running a gym in the shops taken on lease and the said lease has been extending from time to time. It is submitted that the petitioners’ business suffered a severe financial impact during the COVID pandemic and, as such, they were in arrears of rent and that any amount paid was adjusted towards the arrears of rent. The learned counsel further submits that the 3rd respondent issued final notice, dated 15.05.2025, calling upon the petitioners to vacate shops No.34 to 36, 55 and 56. 3. The learned counsel for the petitioners further submits that the 3rd respondent should consider granting a waiver of rent from the petitioners for the COVID period, to tide over the financial crisis and further submits that the petitioners are willing to pay 10% of the rent

-3- W.P. No.32053 OF 2025 Date of order: 19.11.2025

paid in the previous year for permitting them to continue utilizing the said premises.

4.

The learned Standing Counsel appearing for the 2nd respondent submits that the petitioners are in arrears and several notices were issued calling upon the petitioners to repay the outstanding amounts. The arrears pertain to the period from 10.09.2021 to 09.08.2023. It is submitted that the petitioners cannot remain in occupation of the shops belonging to the 3rd respondent without paying rent and that the 3rd respondent would have to put them to auction. The determination of rent would be in accordance with G.O.Ms.No.56, dated 05.02.2011. The petitioners’ case cannot be considered as they are due to pay the outstanding arrears of rent and also the current rent.

5.

On these considerations, this Court is not inclined to interfere with the action of the 3rd respondent in issuing impugned notice. It is left open for the petitioners to clear the arrears of rent and seek extension of lease and updation of the lease outstanding with the 2nd respondent. The 2nd respondent shall consider the request of the petitioners for extension in accordance with G.O.Ms.No.56. 6. The petitioners requested two months’ time to repay the arrears.

-4- W.P. No.32053 OF 2025 Date of order: 19.11.2025

7.

Considering the same, the petitioners are directed to repay the arrears of rent within a period of two months or one day prior to the date of the proposed auction, whichever is earlier.

8.

Accordingly, the writ petition is disposed of. No costs.

9.

Miscellaneous petitions, if any, pending in this writ petition shall stand closed. ____________________ JUSTICE HARINATH.N

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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.