BharatTaxGST

Siddartha Constructions vs. The Ap Industrial Infrastructure Corporation Limited (Govt Of Ap Undertaking)

Original PDF →
WP/23471/2024HC Andhra PradeshGSTCNR APHC01045665202405 November 2024Bench: R RAGHUNANDAN RAO,MAHESWARA RAO KUNCHEAM7 pages
For Petitioner: SRI. G NARENDRA CHETTYFor Respondent: SRI RAMA CHANDRA RAO, gurram

No AI summary yet for this judgment.

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF ANDHRA PRADESH AMARAVATI (Special Original Jurisdiction) WEDNESDAY .THE SIXTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FOUR ^ PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO ^ AND THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION NO: 23471 OF 2024 Between: Siddartha Constructions, H. No. 4-24-44-4, Kadapa Main Road, Pulivendula, YSR Kadapa District - 516390, Rep. by its Managing Partner, T. Sidda Reddy. ...PETITIONER AND 1. The AP Industrial Infrastructure Corporation Limited (GOVT of AP Undertaking), Plot no. 1,1.T. Park, Mangalagiri, Guntur District, Andhra Pradesh, Rep. by its Managing Director. 2. The Chief Engineer, Andhra Pradesh Industrial Infrastructure Corporation Limited, 9th Floor, Tower-1, I.T. Park, Mangalagiri, Guntur District, Andhra Pradesh. 3. The State of Andhra Pradesh, Rep. by the Principal Secretary to the Government, Industrial Department, A.P. Secretariat Buildings, Velagapudi, Guntur District, Andhra Pradesh. The Union of India, rep. by its Secretary (Finance), Ministry of Finance North Block, New Delhi-110001. 4. ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to issue an appropriate Writ, Order or Direction more particularly in the nature of MANDAMUS declaring that the action of the First Second Respondents in not releasing the differential rate of GST @ 6 percentage (i.e., 18 percentage- 12 percentage) on the Works Contracts executed by the Petitioner for APIIC, even though the said Works are not eligible for concessional rate of tax @ 12 percentage as clarified by the Authority for Advance Ruling, Andhra Pradesh, in the Petitioners own case vide AAR Nos. 1 and 2/AP/GST/20221, dated 24-01-2022, and APIIC Ltd.s own Inter-Office Memo vide lOM No. APIIC/FW/GST/2020-21, dated 01-04- 2020, has directed to implement GST @ 18 percentage in respect of all works contracts issued by APIIC where the contractor obtains Advance Ruling from the GST Department for payment of GST @ 18 percentage, is arbitrary, capricious, contrary to law and illegal and consequently direct the Respondents 1 and 2 to release the differential GST Amount 1,36,84,846/- to the Petitioner forthwith with interest. lA NO: 1 OF 2024 may and coming to Rs. 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 be to direct the Respondent nos. 1 and 2 to release the differential GST @ 6 percentage for the Works Contracts executed by the Petitioner for APIIC with interest. Counsel for the Petitioner(s): SRI. G NARENDRA CHETTY Counsel for the Respondent Nos.1 & 2: SRI RAMA CHANDRA RAO gurram Counsel for the Respondent No.3: GP FOR INDUSTRIES Counsel for the Respondent No.4: SRI PASALA SOLICITOR GENERAL OF INDIA

The Court made the following: ORDER PONNA RAO, DEPUTY

APHC010456652024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3508] B WEDNE AY, THE SIXTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION NO: 23471/2024 Between: Siddartha Constructions ...PETITIONER AND The Ap Industrial Infrastructure Corporation Limited Govt ...RESPONDENT(S) Of Ap Undertaking and Others Counsel for the Petitioner: 1.G NARENDRA CHETTY Counsel for the Respondent(S):

1.

RAMA CHANDRA RAO GURRAM 2.GP FOR INDUSTRIES COMMERCE The Court made the following order: (perHon’ble Sri Justice R Raghunandan Rao) The petitioner had executed certain work contracts with M/s. A.P. Industrial Infrastructure Corporation Limited (APIIC) and had been paying taxes under the GST regime @ 12 % on the turn over. However, the Authority for Advance Ruling, by an order, dated 24.01.2022, had held that the rate of tax payable by the petitioner was 18 % and not 12 %. N had taken the contention counsel for the petitioner is entitled to pay which permitted tax to be SGST for contracts that M/s. APllC specified under this entry. The learned 2. tax @ 12 % by telyihg hpon entry COST and 6 % the that the petitioner paid @ 6 % under the Government authorities No.9954 under the petitioner contends authorities as The executed with ambit of government would fall within the Ruling rejected this contention and ambit of government authorities Authority for Advance not fall within the The 3. APllC would in the said entry. held that M/s. specified as , with the contention . But, M/s. APllC not been paid by pproached this Court with tax @ 18 % has now a The petitioner is now being 4. assessed and the remaining 6 % tax has that the petitioner had only paid 12 % tax M/s. APllC. Counsel for learned Standing Chandra Rao APllC had paid the tax Sri Gurram Rama contend that M/s 5. which had been M/s. APllC would claimed by the petitioner raised against M/s. APUC. complaint can be and consequently no in all its bills bills, had been contracts executed by the % tax would also is that M/s. APllC. in its and work additional rate of 6 admitted fact is reimbursing the tax paid by fhe petitioner The 6. , the In such circumstances reimbursed by Mis. APUC. petitioner have to be } Accordingly, this Writ Petition is allowed, directing M/s. APIIC to pay the additional tax of 6 % to the petitioner within a period of two (02) months from the date of the petitioner submitting the necessary bills for the additional tax of 6 %. There shall be no order as to costs.

7.

As a sequel, interlocutory applications pending, if any shall stand closed. K.J.RAJA BABU ASSISTANT REGISTRAR //// T SECTION OFFICER To, Director, AP Industrial Infrastructure Corporation Limited (GOVT of AP Undertaking), Plot no. 1, I.T. Park, Mangalagiri, Guntur District, Andhra Pradesh.

2.

The Chief Engineer, Andhra Pradesh Industrial Infrastructure Corporation Limited, 9th Floor, Tower-I, I.T. Park, Mangalagiri, Guntur District, Andhra Pradesh. Principal Secretary to the Government, Industrial Department, A.P. Secretariat Buildings, Velagapudi, Guntur District, Andhra Pradesh.

4.

The Secretary, Union of India, (Finance), Ministry of Finance, North Block, New Delhi-110001. 5. One CC to Sri. G Narendra Chetty, Advocate [OPUC]

6.

One CC to Sri. Rama Chandra Rao Gurram, Advocate [OPUC]

7.

One CC to Sri Pasala Ponna Rao, Deputy Solicitor General of India [OPUC].

8.

Two CCs to GP For Industries, High Court of Andhra Pradesh [OUT].

9.

THREE CD Copies

1.

The Managing

3.

The ^7 AL

ri HIGH COURT TL . PATED:06/1 1/2024 ORDER WP.No.23471 of 2024 Of 2 3 NOV 202*1 Current Section PfSPATCVV^S?^ m I Co ALLOWING THE WP 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.