BharatTaxGST

Southern Inspection Service Private Limited vs. The Assistant Commissioner

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WP/22010/2025HC Andhra PradeshGSTCNR APHC01043169202519 August 2025Bench: R RAGHUNANDAN RAO,T.C.D.SEKHAR9 pages
For Petitioner: SRI ANIL KUMAR BEZAWADAFor Respondent: GP FOR COMMERCIAL TAX

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Cause title — parties, addresses and appearances
tyM APHC010431692025 r IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) > WEDNESDAY,THE TWENTIETH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 22010 OF 2025 Between: Southern Inspection Service Private Limited, Represented by Shri. Prasanna D No. 9-16-23/1, 1st Floor, Kumar Thadi, Brethren Church Road, 0pp. Ramatalkies Road, CBM Compound, Visakhapatnam, Andhra Pradesh - 530 003. ...PETITIONER AND 1. The Assistant Commissioner (ST), Siripuram Circle, Visakhapatnam - I D No. 8-1-63/10, 2nd Floor, Division, Mehar Plaza, Nowka Nagar, Pedda Waltair, Visakhapatnam, Andhra Pradesh - 530 017. 2. The State of Andhra Pradesh, Represented by its Principal Secretary, Revenue Department (Commercial Tax), A.P. Secretariat, Velegapudi. 3. Union of India, Department of Revenue, Represented by its Secretary (Revenue), North Block, New Delhi. 4. The Branch Manager, IDBI Bank, Visakhapatnam Branch Balaji's Mangalgiri Chambers, 9/29/6-1, Siripuram, Visakhapatnam - 530 003. ...RESPONDENTS A '<T Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed there\A/ith, the High Court may be pleased to issue a writ of mandamus or any other writ, direction, or order A. Quashing the proceedings of the Respondent in the demand order passed vide Case ID No AD3702240066863 dated 24.07.2024, for the FY 2019-20, denying the Input Tax Credit of IGST Rs. 2,20,185/- and demanding the same along with interest and penalty u/s 73 of the COST Act 2017, on the ground of violation of Section 16(4) of the COST Act, 2017, as the Petitioner is entitled to such credit in light of the extension of time limit for claiming Input Tax Credit for the said period by the Parliament through the retrospective insertion of Section 16(5) of the CGST Act, 2017, as the Petitioner has availed the said credit within the extended time limit B. Consequently, issue a direction or order to set aside the actions of the 1st Respondent in attaching the Bank A/c of the Petitioner in IDBI Bank, Visakhapatnam Branch, Balaji's Mangalgiri 9/29/6-1, Siripuram, Visakhapatnam and direct the 4 Respondent to lift the attachment of the Petitioners Bank Account. th Chambers, 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 to stay the proceedings of the 1®' Respondent in demand order passed vide AD3702240066863 dated 24.07.2024, for the FY 2019-20, denying the Input Tax Credit of IGST Rs. 2,20,185/- and demanding the same along with interest and penalty u/s 73 of the COST Act 2017. Case ID No; 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 to direct the 1®* Respondent, to lift the Attachment of the Petitioner’s Bank Account in IDBI Bank, Visakhapatnam Branch, Balaji's Mangalgiri Chambers, 9/29/6-1, Siripuram, Visakhapatnam and drop the recovery proceedings initiated in the interest of justice. Counsel for the Petitioner: SRI ANIL KUMAR BEZAWADA Counsel for the Respondent Nos.1 & 2: GP FOR COMMERCIAL TAX Counsel for the Respondent No.3:THE ADDL. SOLICITOR GENERAL INDIA OF Counsel for the Respondent No.4:--

The Court made the following order:

r APHC010431692025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3529] \ WEDNE AY, THE TWENTIETH DAY OF AUGUST TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 22010/2025 Between: 1.SOUTHERN INSPECTION SERVICE PRIVATE LIMITED, REPRESENTED BY SHRI. PRASANNA KUMAR THADI, D NO. 9-16- BRETHREN CHURCH ROAD, OPP. CBM COMPOUND, VISAKHAPATNAM, 23/1, 1ST FLOOR, RAMATALKIES ROAD, ANDHRA PRADESH - 530 003. ...PETITIONER AND 1.THE ASSISTANT COMMISSIONER, THE ASSISTANT COMMISSIONER (ST), SIRIPURAM CIRCLE, VISAKHAPATNAM - I DIVISION, D NO. 8-1-63/10, 2ND FLOOR, MEHAR PLAZA, NOWKA NAGAR, PEDDA WALTAIR, VISAKHAPATNAM, ANDHRA PRADESH -530 017. 2.THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, REVENUE DEPARTMENT (COMMERCIAL TAX), A.P. SECRETARIAT, VELEGAPUDI. 3.UNION OF INDIA, DEPARTMENT OF REVENUE, REPRESENTED BY ITS SECRETARY (REVENUE), NORTH BLOCK, NEW DELHI. 4.THE BRANCH MANAGER, IDBI BANK, VISAKHAPATNAM BRANCH 9/29/6-1, SIRIPURAM, BALAJI’S MANGALGIRI CHAMBERS VISAKHAPATNAM - 530 003. ...RESPONDENT(S):

lA/. P. No. 22010 of 2025 :rro-^s:~^ pjrirr£iir:nr"~ sr■s- ;.r ~.™- s::i: Visakhapatnam and direct the 4th Petitioners Bank Account and B. IDBI Bank, 9/29/6-1, Siripuram, Respondent to lift the attachment of the C. Pass LA NO: 1 OF 2C)9R Petition under Section 151 CPC in the affidavit filed i praying that in the circumstances stated Pleased .0 stay .he preiro7:“rSnd?:^ 'oir^Vf ^^3702240066863 dated 24 07 202I"' 2019-20, denying the Input Tax Credit of IGST Rs, 2 20 185/- and same along with interest and penalty u/s 73 of the COST Act 2017 for the FY demanding iA NO: 2 OF 2n?.^ in the'airviUile" fn7uppo7on7 stated amoers, 9/29/6-1, Siripuram, Visakhapatnam and dmn th^ proceedings initiated in the interest of justice and pass Counsel for the Petitioner: I.ANIL KUMAR BEZAWADA Counsel for the Respondent(S):

1.

GP FOR COMMERCIAL TAX Mangalgiri recovery

2.

The Court made the following order: (perHon’ble Sri Justice R. Raghunandan Rao) Heard Sri Anil Kumar Bezawada, learned counsel for the petitioner and learned Government Pleader for Commercial Tax, appearing for the the respondents. The petitioner, was assessed to tax, under the Central Goods and Service Tax Act, 2017 (for short “the CGST Act”), Andhra Pradesh Goods and Service Tax Act, 2005 (for short “the APGST Act”) and Integrated Goods and Service Tax Act, 2017 (for short “the IGST Act”), by way of an Order, dated 24.07.2024. During the pendency of the assessment, the petitioner sought to take credit available under the credit ledger. However, this request of the petitioner was rejected by the 1®' respondent on the ground that the credit was sought, on 28.08.2021, which was 10 months beyond the maximum time available under Section 16(4) of the CGST Act, namely 20.10.2020.

2.3.

Aggrieved by the said order of assessment, the petitioner has approached this Court by way of the present Writ Petition. Sri Anil Kumar Bezawada, learned counsel for the petitioner would rely upon the amended provision of Section 16 wherein sub-section (5) was inserted by a Finance Act, 2024, with effect from 27.09.2024. The relevant provision of Section 16(5) of the CGST Act reads as follows. “Section-16(5) Notwithstanding anything contained in sub-section (4), in respect of an invoice or debit note for 4. supply of goods or services or both pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit In any return under Section 39 which is filed up to the thirtieth day of November, 2021."

5.

By virtue of this provision, and by virtue of the non-obstante clause available in this provision, the petitioner would be entitled to avail the credit, which was rejected by the 1^' respondent, as the credit that is sought to be availed relates to te Financial Year 2019-20. Apart from this, the petitioner sought to avail the credit, on 28.08.2021, which is within the time limit of 30.11.2021. 6. In that view of the matter, this Writ Petition is allowed setting aside the order of assessment, dated 24.07.2024 and the matter is remanded back to the 1®' respondent to pass fresh assessment order keeping in view the provision of Section 16(5) of the COST Act. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. G- HELA MAIDU ^ STRAR SECT’io)4 officer assistAt^T RE^' //// To, The Assistant Commissioner (ST), Siripuram Circle, Visakhapatnam - D No. 8-1-63/10, 2nd Floor, Mehar Plaza, Nowka Nagar,

1.

Division, Pedda Waltair, Visakhapatnam, Andhra Pradesh - 530 017. 2. The Principal Secretary, Revenue Department (Commercial Tax), State of Andhra Pradesh, A.P. Secretariat, Velegapudi.

3.

The Secretary(Revenue), Department of Revenue, Union of India, North Block, New Delhi.

4.

The Branch Manager, IDBI Bank, Visakhapatnam Branch, Balaji's Mangalgiri Chambers, 9/29/6-1, Siripuram, Visakhapatnam - 530 003. 5. One CC to Sri Anil Kumar Bezawada, Advocate [OPUC]

6.

One CC to the Addl. Solicitor General of India, High Court of A.P at Amaravati[OPUC]

7.

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

8.

Two CD Copies. ssb

HIGH COURT DATED:20/08/2025 ORDER WP No. 22010 OF 2025 o o o I n 6 OCT 20?5 ^ Current .ecuon aw- >,V .'V 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.