BharatTaxGST

M/S.Vishal Infrastructure Limited, Regd.Off:225/A vs. Managing Director, A.P.Road Development Corporation

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WP/2597/2006HC Andhra PradeshGSTCNR APHC01006540200618 November 2025Bench: R RAGHUNANDAN RAO,T.C.D.SEKHAR5 pages
For Petitioner: S CHAKRAPANIFor Respondent: GP FOR ROADS & BUILDINGS, GP FOR COMMERCIAL TAX

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Cause title — parties, addresses and appearances
APHC010065402006 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] WEDNESDAY,THE NINETEENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 2597/2006 Between: 1. M/S.VISHAL INFRASTRUCTURE LIMITED, REGD.OFF:225/A, ANUGRITHA APARTMENTS, RUKMINI DEVI COLONY, WEST MAREDPALLY, SECUNDERABAD-500026 REP.BY ITS AUTHORISED SIGNATORY, SRI.P.VICTOR VARAPRASADA RAO ...PETITIONER AND 1. MANAGING DIRECTOR A P ROAD DEVELOPMENT CORPORATION, ENGINEER-IN-CHIEF (R&B) ADMN., NABARD, HYDERABAD ANDHRA PRADESH 2. COMMISSIONER OF COMMERCIAL TAXES NAMPALLY, GOVERNMENT OF A.P., HYDERABAD ...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 to issue an order or direction more particularly in the nature of writ of mandamus declaring the action of the respondent corporation in not increasing the sales tax component from 1.4% to 4% as illegal, arbitrary and whimsical and ii) direct the respondent authorities to deduct tax after giving effect to the decision of the Government and increase the sales tax component to 4% of the Contract value as against the pre-existing rate 1.4.% of the contract value 2 IA NO: 3 OF 2006(WPMP 3182 OF 2006 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-corporation to deduct tax after increasing the sales tax component to 4% as against pre-existing 1.4% of the contract value pending disposal of the writ petition IA NO: 4 OF 2006(WPMP 12622 OF 2006 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 Counsel for the Petitioner: 1. S CHAKRAPANI Counsel for the Respondent(S): 1. GP FOR ROADS & BUILDINGS 2. GP FOR COMMERCIAL TAX 3

The Court made the following ORDER: (Per Sri Justice R.Raghunandana Rao)

The petitioner had entered into an agreement dated 23.12.2004, with the 1st respondent Corporation for the purpose of maintaining certain roads. At the stage of entering into the contract, the rate of tax is said to be 1.4 %, under the provisions of the Andhra Pradesh Goods and Services Tax Act, 2017 (for short “APGST Act”). Subsequently, the Andhra Pradesh Value Added Tax, 2005 (for short “APVAT Act”) came into force and the rate of interest is increased to 4%. The petitioner sought this increase to be reimbursed by the 1st respondent Corporation.

2.

As such reimbursement was not been made, the petitioner approached this Court, by way of the present writ petition.

3.

Heard Sri S.Chakrapani, learned counsel for the petitioner and learned Government Pleader for Commercial Taxes.

4.

It is settled law that the question of reimbursement of Sales Tax to the person on whom the burden to pay such tax is cast, is a matter of contract between the parties. There is no rule or law which mandates that the beneficiary of the contract, is required to reimburse the payment of tax by the person on whom the burden of such paying the tax is cast.

5.

In the present case, Clause 45 of the Agreement, dated 23.12.2004 specifically states that the rates quoted by the contractor shall be deemed to 4

be inclusive of the sales and other taxes that the contractor will have to pay for the performance of the contract.

6.

In view of the aforesaid norms, the petitioner would not have any inherent right to claim additional 2.6% of tax.

7.

In the circumstances, we do not find any merits in the writ petition. Accordingly, this Writ Petition is dismissed. There shall be no order as to costs.

As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J

________________ T.C.D. SEKHAR, J

Date: 19.11.2025 KA

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THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION NO: 2597/2006 Date: 19.11.2025 KA

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.