Dharani Infra vs. The State Of Ap
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Cause title — parties, addresses and appearances
The Court made the following order: or I APHC010199632025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3541] WEDNE AY, THE SIXTEENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM WRIT PETITION NO; 17086/2025 Between: 1.DHARANI INFRA, SHOP NO. 1357, SRI BAPUJI MARKET COMPLEX, ONGOLE, REP. BY ITS MANAGING PARTNER, SRI. LOKIREDDY SUBBA REDDY, S/0. HANUMA REDDY, AGED ABOUT 44 YEARS. PRAKASAM DISTRICT. ...PETITIONER AND 1.THE STATE OF AP, REP BY ITS PRINCIPAL SECRETARY, VELAGAPUDI, AMARAVATHI, REVENUE (CT) DEPARTMENT GUNTUR DISTRICT, ANDHRA PRADESH. 2.THE ASSISTANT COMMISSIONER ST, KAVALI CIRCLE, SPSR NELLORE DISTRICT ANDHRA PRADESH. 3.THE ASSISTANT COMMISSIONER ST, FORMERLY COMMERCIAL TAX OFFICER NO. 1 CIRCLE, ONGOLE, PRAKASAM 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 action of the Respondents more particularly after calling for the entire records relating to the impugned proceedings of the Assistant Commissioner (ST), Kavali Circle, Kavali dated
2 21-01-2025 in Form GST DRC -07 for the period 15-10-2018 to 30-11-2020 under section 74 of the GST Act 2017 without issue of show cause notice subsequent to 10-01- 2025 without issuing of personal hearing notice where after and without supply of copy of the report of 10-01 -2025 by holding the as illegal, arbitrary, wilful disobedience of the directions of this Honble Court dated 17-08-2023 in W.P. No. 26140/2022 and without authority of law, violative of articles 14, 19(1)(g), 21 and 300-A of the Constitution of India and pass lA 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 68 days condone the delay of days in representing the writ petition, the Petitioner would suffer severe loss and hardship. lA 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 suspend the operation of the impugned order of 21-01-2025 issued by the 2nd Respondent received on 24-01-2025 pending disposal of the writ petition or else the Petitioner would suffer serious loss Counsel for the Petitioner: 1.M VJ KKUMAR Counsel for the Respondent(S): 1 .GP FOR COMMERCIAL TAX
3 The Court made the following Order: (per HonUeSn justice R.RaghunandanRao) Heard M.V.K. Moorthy, learned Senior Counsel appearing on behalf of Sri M.V.J.K. Kumar, learned counsel for the petitioner and the Learned Assistant Government Pleader for Commercial Tax.
The petitioner is in the business of construction services and is a registered person under the GST regime. The petitioner was served with an Order, dated 19.05.2022, denying one time option, to pay a reduced rate of tax on construction services, on the ground that the necessary option forms are not available or not traceable in the office of the Assistant Commissioner (ST), GST No.1 Circle, Ongole.
Aggrieved by the said Order dated 19.05.2022, the petitioner had approached this Court, by way of W.P.No.26140 of 2022, contending that the denial of the option of payment of tax at a reduced rate, on the ground that the option form is not available with the concerned authority, is an arbitrary action. This Court, by an Order dated 17.08.2023, had allowed the Writ Petition by setting aside the Order, dated 19.05.2022, and remanding the matter back to the appropriate authority with a direction to receive the copy of confirmation of Annexure-IV submitted by the petitioner and to examine the genuineness or otherwise of the document and to pass appropriate orders after affording an opportunity of hearing to the parties. The petitioner, after the disposal of the Writ Petition, had submitted the Annexure-IV and the proof of filing of the said Annexure-IV to the assessing authority. It appears that the assessing authority, by notice dated 20.10.2023 and 04.10.2024, had sent the said Annexure-IV to the Assistant Commissioner(ST), Ongole-I, for confirmation of the genuineness of the Annexure-IV. Thereafter, the petitioner has been served an Order dated 21.01.2025, in which the 2'^'^ respondent had held that the report of the Assistant Commissioner (ST), Onglole-I, stated that the documents produced by the petitioner are not genuine and that Annexure-IV had not been 4. 4 submitted at all. On this basis, the claim of the petitioner for a levy of the reduced taxes was rejected and a fresh Order was again passed on 21.01.2025. 5. Aggrieved by the said Order dated 21.01.2025, the petitioner has again approached this Court by way of the present Writ Petition. The petitioner has raised various grounds of challenge both on merits and on violation of the principles of natural justice as well as the violation of the right of the petitioner for a personal hearing in the matter.
Learned Assistant Government Pleader for Commercial Tax, on instructions, has fairly conceded that a proper show-cause notice was not issued after the report of the Assistant Commissioner (ST), Onglole-I, had been received.
This Court, in the Order dated 17.08.2023, had directed the 2"'^ respondent to pass fresh orders after affording an opportunity of hearing to both parties. In such circumstances, the report of the Assistant Commissioner (ST), Onglole-I, should have been served on the petitioner and the petitioner should have been given an opportunity of hearing. It appears that such an opportunity had not been given. This fact becomes clear when the references in the impugned Order dated 21.01.2025 is perused. In the references, the 2 respondent states that the letter to the Assistant Commissioner (ST), Onglole- I, for confirmation of genuineness was sent on 20.10.2023 and 04.10.2024. The report of the Assistant Commissioner (ST), Onglole-I, is said to have been dated 10.01.2025. However, a notice for personal hearing was given on 04.10.2022, even before the report of the Assistant Commissioner (ST), Onglole-I, had been received. In such a situation, it is obvious that there was no personal hearing given to the petitioner after receipt of the report. 8. nd
5 Apart from this, the provisions of the GST Act itself stipulate that a registered person is entitled to a notice and hearing whenever the authority proposes to pass an Order adverse to the interest of the registered person.
As there has been a violation of the directions of this Court as well as the provisions of the GST Act, it would be appropriate to set aside the impugned Order dated 21.01.2025. However, it would be open to the 2 respondent to initiate afresh proceedings after giving appropriate notice and opportunity of hearing to the petitioner, in accordance with the provisions of Section 75 of the GST Act and to pass orders expeditiously. 10. nd
Accordingly, this Writ Petition is allowed. There shall be no order as to costs • ii*'. As a sequel, pending miscellaneous applications, if any, shall stand closed. G. HELA NAIDU ASSISTANT REGtSTRAR ' SECTION OFFICER //// To,
The Principal Secretary, Revenue (CT) Department, Velagapudi, Amaravathi, Guntur District, Andhra Pradesh.
The Assistant Commissioner (ST), Kavali Circle, SPSR Nellore District Andhra Pradesh.
The Assistant Commissioner (ST), Formerly Commercial Tax Officer No. 1 Circle, Ongole, Prakasam District Andhra Pradesh.
One CC to Sri M V J K Kumar, Advocate [OPUC]
Two CCs to GP for Commercial Tax, High Court of Andhra Pradesh [OUT]
Two CD Copies TF
HIGH COURT DATED:16/07/2025 5 2 UUL 2025 ORDER WP NO. 17086 OF 2025 ^2 A ALLOWING THE W.P. WITHOUT COSTS
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.