K Sashi Narayana vs. The State Of Andhra Pradesh

Facts

The petitioner, K Sashi Narayana, a dealer registered under the Andhra Pradesh Goods and Services Tax Act, 2017, filed a writ petition challenging the inaction of the respondents in not disposing of a rectification application dated 26.12.2025. This application was filed against an assessment order dated 17.12.2025 for the tax period April-2021 to March-2022. The petitioner also challenged an attachment order dated 11.09.2026 for Rs.5,23,94,674/-, arguing it was unjustified as the outstanding liability was less than Rs.4,50,000/-. The petitioner had previously paid a tax demand of Rs.12,14,001.85 for financial years 2018-2019 to 2022-2023, after which proceedings were dropped. An audit for April 2021 to March 2022 led to the assessment order dated 17.12.2025. A previous writ petition challenging this order was disposed of, allowing the petitioner to file an appeal. However, the petitioner opted to file a rectification application.

Held

The Court found that the grievance in the present writ petition was the inaction of the respondents in not disposing of the rectification application dated 26.12.2025, which was made through the GST portal and also via a separate letter to the 4th respondent. It was not disputed that the application was still pending, with no specific reasons provided for the delay. The learned Assistant Government Pleader, on instructions, assured the Court that the application would be examined immediately and appropriate orders passed expeditiously. Considering this submission and the fact that a connected writ petition (W.P.No.27327 of 2026) concerning the tax period 2019-2020 had been allowed, setting aside the assessment order, the Court deemed it appropriate to dispose of the present writ petition. The Court directed the 3rd respondent to take necessary action on the rectification application forthwith and pass appropriate orders expeditiously. Furthermore, in light of the orders passed in the connected writ petition and the present order, the notice of attachment dated 11.09.2026 was revoked. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the respondents have acted inordinately slowly in disposing of the petitioner's rectification application dated 26.12.2025, filed under Section 161 of the GST Act, against the assessment order dated 17.12.2025 for the tax period April-2021 to March-2022? 2. Whether the attachment notice dated 11.09.2026, issued for recovery of tax dues for the periods 2019-2020 and 2021-2022, is justified and tenable when the rectification application concerning the tax period April-2021 to March-2022 is pending? Petitioner's arguments: The petitioner contended that an error apparent existed in the assessment order dated 17.12.2025, warranting rectification under Section 161 of the GST Act. They argued that the 3rd respondent passed a subsequent order dated 31.03.2026 for the tax period 2019-2020 without issuing a notice, reiterating a tax liability, penalty, and interest. The petitioner further argued that the attachment notice dated 11.09.2026 was not just or tenable given the pending rectification application. Respondents' arguments: The learned Assistant Government Pleader, on instructions, stated that the pending rectification application would be examined immediately and appropriate orders passed without further delay.