M/S. Ss Rail Works Private Limited vs. The Commissioner Of State Tax - Andhra Pradesh High Court, 02 May 2023

Cause title — parties, addresses and appearances

PRESENT WRIT PETITION NOs: 11291 & 11292 OF 2023 WRIT PETITION NO: 11291 OF 2023 Between: ...PETITIONER 1. . ■■ - S; V c- THE HON’BLE SRI JUSTICE U.DURGA PRASAD RAO AND THE HON’BLE SRI JUSTICE T MALLIKARJUNA RAO IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE THIRD DAY OF MAY TWO THOUSAND AND TWENTY THREE Revenue Department (Commercial .Tax), Secretariat Building, Amaravathi, Andhra Pradesh ; ...RESPONDENTS ’’'.AH? 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 to pass a writ order or direction,./more particularly in the nature of a writ of mandamus declaring the action of Respondent No.2 in recovering the demand amount of IGST March 2018 vide Reference No. DC3702230063588 (IGST electronic cash ledger) and Reference No. DI3702230083432 (CGST electronic credit ledger)without issuing any intimation/notice as being void, illegal, arbitrary, violative of Articles 14, 19, 21 and 265. of the Constitution of India, violative of ■ t’i ‘ M/s. SS Rail Works Private Limited, ;1 -30, Near Munamavari Street, Nadendla Village and Mandal, Guntur District- 522'234 Represented by its Managing Director, Mr. Annamreddy Venkat Manish Reddy, S/o. Annamreddy Srinivasulu Reddy, Aged about 34 Years, R/o. Hyderabad AND ••• The Commissioner of State Tax, /Door No. 12-468-4, Adjacent to NH-16, Service Road, Kunchanapally, Guntur District Andhra Pradesh-522501 2. The Assistant Commissioner of State Tax, Nellore-I Circle, Nellore Division, D. No. 15-505/2, 2nd Floor, C.T. Complex, R. R. Street, Nellore, Andhra Pradesh-524001 3. The Assistant Commissioner of State Tax, Chilakaluripet Circle, Guntur- 2 Division, D. No. 4-355, 2nd Line,: Pandaripuram, Chilakaluripet, Andhra Pradesh-522616 4. The Joint Commissioner (Appeals), Tirupathi, 19-10-100-3A New Indira Nagar, Besides SGS Arts College/Rdad, Tirupati-517501 5. State of Andhra Pradesh, Through Principal Secretary to Government, 42 lA NO: 1 OF 2023 Between: about 34 Years, R/o. Hyderabad AND Counsel for the Petitioner: SRI. VARUN BYREDDY Counsel for the Respondents: GP FOR COMMERCIAL TAX • J... WRIT PETITION NO: 11292 OF 2023 ; '••J Revenue Department (Commercial Tax), Secretariat Buildings, A.P. ...RESPONDENTS 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 to pass a writ order or directiori, niore particularly in the nature of a writ of mandamus declaring the action of Respondent No.2 in recovering the demand amount of COST March 2019 vide Reference No. DC3702230063567 without issuing any intimation/notice as being woid, illegal, arbitrary, violative of Articles 14, 19, 21 and 265 of the Constitution of India, violative of principles of natural 1. The Commissioner of State Tax, Door No.12-468-4, Adjacent to NH-16, Service Road, Kunchanapally, Gunttir District Andhra Pradesh-522501 2. The Assistant Commissioner of State Tax, Nellore-I Circle, Nellore Division, D. No. 15-505/2, 2nd Floor, C.T. Complex, R. R. Street, Nellore, Andhra Pradesh- 524001 3. The Assistant Commissioner of State Tax, Chilakaluripet Circle, Guntur- 2 Division, D. No. 4-355, 2nd Line; Pandaripuram, Chilakaluripet, Andhra Pradesh-522616 4. The Joint Commissioner, (Appeals), Tirupathi, 19-10-100-3A New Indira Nagar, Besides SGS Arts College Road, Tirupati-517501 5. State of Andhra Pradesh, Through Principal Secretary to Government, principles of natural justice, and without authority of law and consequently set aside the same. (b)To pass a writ, order or direction, more particularly in the nature of a writ of mandamus declaring that the amount of tax recovered by the Respondent No.2 may be refunded along with 12% interest from the date of un- . authorized debit till the date of payment.' a •'>? • 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 to direct the Respondent No 2 and other respondents not to recover any further amounts. M/s S S Rail Works Private Limited,. 1-30, Near Munamavari Street, Nadendla Village and Mandal, Guntur District- 522 234 Represented by its Managing Director, Mr. Annamreddy Venkat Manish Reddy, S/o. Annamreddy Srinivasulu Reddy, Aged about 34 Years, R/o. Hyderabad : ...PETITIONER lA NO: 1 OF 2023 ■ • •< ■7 ' ■ ^... ■■ ■■ '^-'A h- : < '■ s- . justice, and without authority of law atid^,consequently set aside the same. To pass a writ, order or direction, more particularly in the nature of a writ of mandamus declaring that the amount of tax recovered by the Respondent No.2 may be refunded along with 12% interest from^ tha date of un-authorized debit till the date of payment. I y -? Petition under Section 151 CPC-praying that in the circumstances stated in the affidavit filed, irrsupport of the petitionj/the High Court may be pleased to direct the Respondent No 2 and other responderfts not to recover any further amounts. Counsel for the Petitioner: SRI. VARUN BYREDDY Counsel for the Respondents: GP FOR COMMERCIAL TAX

The Court made the following: COMMON ORDER

1 WRIT PETITION Nos.11291 of 2023 and 11292 of 2023 COMMON ORDER; (per UDPR,J) Heard Sri Varun Byreddy, learned counsel for the petitioner and learned Government pleader for respondents. The petitioner is common in both Writ Petitions and his 2. grievance is identical. respondent has recovered 3. demanded COST for the period of March, 2018 and March 2019 concerning to the Writ Petition No.11291/2023 and 11292/2023, against the original assessment order, the of APGST Act, 2017 by depositing the statutory amount and by virtue of Section 107 (7) of the GST Act deemed stay has came into force.

Order in W.P.No.8255 of 2023 and batch to contend that in similar HON’BLE SRI JUSTICE U.DURGA PRASAD RAO AND HON’BLE SRI JUSTICE T. MALLIKARJUNA RAO circumstances this court passed order and allowed the Writ Petitions inspite of the fact that as petitioner has filed appeals before the 4**’ respondent under Section 107 Learned counsel for the petitioner referred the common His Grievance is that 2*^

2 \ and directed the 2"** respondent to refund the amount recovered from the account of the petitioner except 10% of the amount of the demanded tax which was deposited for filing the appeals.

On a perusal of the common order in Writ Petition No.8255 of 2023 and batch, this Court finds that the said order applies amount as illegal and opposed to Section 107 (7) of APGST Act, 2017 and consequentially directed the respondents to refund the amount recovered from the account of the petitioner except 10% of the 6. It is to be noted that repeatedly such type of collection of the tax by way of adjusting the amount is being made by the concerned statutory provisions. department officials inspite of the fact that deemed stay is in operation under Section 107 (7) of the APGST Act. Before embarking upon the such mode of the collection of tax they must be cautious of the relevant allowed declaring the action of respondents in recovering the impugned demanded demanded tax which was deposited by the petitioner while filing the appeals before authority. with all its fours as a number of writ petitions were 3 7. respondents are directed to refund the amount recovered from the petitioner except 10% of the amount already deposited by the petitioner. No order as to costs. Miscellaneous petitions, if any, pending in these cases, shall stand closed. //// \ SECTION OFFICER To,

M. SRINIVAS ASSISTANT REGISTRAR The Commissioner of State Tak/ Door No.12-468-4, Adjacent to NH-16, Service Road, Kunchanapally, Guntur District Andhra Pradesh-522501

The Assistant Commissioner of State Tax, Nellore-I Circle, Nellore Division, D. No. 15-505/2, 2nd Floor, C.T. Complex, R. R. Street, Nellore, Andhra Pradesh- 524001

The Assistant Commissioner of State Tax, Chilakaluripet Circle, Guntur- 2 Division, D. No. 4-355, 2nd Line, Pandaripuram, Chilakaluripet, Andhra Pradesh-522616

The Joint Commissioner (Appeals), Tirupathi, 19-10-100-3A New Indira Nagar, Besides SGS Arts College Road, Tirupati-517501

The Principal Secretary to Government, Revenue Department (Commercial Tax), State of Andhra Pradesh, Secretariat Building, Amaravathi, Andhra Pradesh

One CC to Sri. Varun Byreddy Advocate [OPUC]

Two CCs to GP for Commercial Tax, High Court of Andhra Pradesh. [OUT]

Two CD Copies kr •

Accordingly these Writ Petitions are allowed and HIGH COURT DATED:03/05/2023 COMMON ORDER WP.Nos.11291 & 11292 of 2023 ALLOWING BOTH THE WPs WITHOUT COSTS 5 12 SEP 2023 1