IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) WEDNESDAY ,THE TWENTY THIRD DAY OF APRIL TWOTHOUSANDAND TWENTYFIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HONOURABLE SRI JUSTICE B V L N CHAKRAVARTHI WRIT PETITION NO’s: 9376. 9385 & 9389 OF 2025 WRIT PETITION NO: 9376 OF 2025 Between: Allu Ramana Murthy, .S/o Allu Jayaram, Aged about 54 years, H. No. 23-8- 5/1, Veluturi Vari Veedhi, Vizianagaram town, Vizianagaram District - 535002 ...PETITIONER AND 1. Assistant Commissioner (ST), Vizianagaram West Circle, Vizianagaram. 2. Deputy Assistant Commissioner (ST), Vizianagaram West Circle, Vizianagaram. 3. State of Andhra Pradesh, Rep. by Principal Secretary, Revenue (CT) Department, Secretariat Building, Velagapudi Amaravathi, Guntur District. 4. Chief Commissioner of State Taxes, Kunchanapalli, Guntur District. r ...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 pe pleased to issue a writ, order or direction, more particularly in the nature of a Writ of Mandamus declaring the Assessment Order passed by the 1st Respondent bearing AO No. ZH370321OD47456 dated 30.03.2021 under Section 21(5) of AP VAT Act, 2005 for the year 2015-16 and the consequential bank attachment notice issued by the 2nd respondent in Form GST DRC -13 under Section 79(1 )(C) of CGST/SGST Act, 2017 dated 21.02.2025 without the name of the petitioner in assessment order, and without service of notice and assessment order, as being void, illegal, arbitrary and in violation of principles of natural justice and consequently set aside the same. ^ 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 may be pleased to grant interim suspension of the impugned attachment notice dated 21.02.2025 issued by the 2nd Respondent in Form GST DRC -13 under Section 79(1 )(C) of CGST/SGST Act, 2017, pending disposal of the Writ Petition as otherwise the petitioner will be put to severe loss and hardship. Counsel for the Petitioner: SRI. L CHANDRA OBUL REDDY Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 9385 OF 2025 Between: Allu Ramana Murthy, S/o Allu Jayaram, Aged about 54 years, H. No. 23-8- 5/1, Veluturi Vari Veedhi, Vizianagaram town, Vizianagaram District - 535002 ...PETITIONER AND 1. Assistant Commissioner, Vizianagaram West Circle, Vizianagaram. 2. Deputy Assistant Commissioner (ST),, Vizianagaram West Circle, Vizianagaram. 3. State of Andhra Pradesh,, Rep. by Principal Secretary, Revenue (CT) Department, Secretariat Building, Velagapudi, Amaravathi, Guntur District. 4. Chief Commissioner of State Taxes,, Kunchanapalli, Guntur District. ...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 issue a writ, order or direction, more particularly in the nature of a Writ of Mandamus declaring the Assessment Order passed by the 1st Respondent bearing AO No. ZH3704220D43007 dated 08.04.2022 under Section 21(5) of AP VAT Act, 2005 for the year 2016-17 and the^ consequential bank attachment notice issued by the 2nd respondent in Form GST DRC -13 under Section 79(1 )(C) of CGST/SGST Act, 2017 dated 21.02.2025 without the name of the petitioner in assessment order, and without service of notice and assessment order, as being void, illegal. arbitrary and in violation of principles of natural justice and consequently set aside the same and pass 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 grant interim suspension of the impugned attachment notice dated 21.02.2025 issued by the 2nd Respondent in Form GST DRC -13 under Section 79(1 )(C) of CGST/SGST Act, 2017, pending disposal of the Writ Petition Counsel for the Petitioner: SRI. L CHANDRA OBUL REDDY Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 9389 OF 2025 Between: Allu Ramana Murthy, S/o Allu Jayaram, Aged about 54 years, H. No. 23-8- 5/1, Veluturi Vari Veedhi, Vizianagaram town, Vizianagaram District - 535002 ...PETITIONER AND 1. Assistant Commissioner, Vizianagaram West Circle, Vizianagaram. 2. Deputy Assistant Commissioner (ST), Vizianagaram West Circle, Vizianagaram. 3. State of Andhra Pradesh, Rep. by Principal Secretary, Revenue (CT) Department, Secretariat Building, Velagapudi Amaravathi, Guntur District. 4. Chief Commissioner of State Taxes, Kunchanapalli, Guntur District. ...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 issue a writ, order or direction, more particularly in the nature of a Writ of Mandamus declaring the Assessment Order passed by the ISTRespondent bearing AO No. ZH37111200D41178 dated 17.11.2020 under Section 21(5) of AP VAT Act, 2005 for the period from October 2014 to March 2015and the consequential bank attachment notice issued by the 2ND respondent in Form GST DRC -13 under Section 79(1 )(C) of CGST/SGST Act, 2017 dated 21.02.2025 without the name of the petitioner in assessment order, and without service of notice and assessment order, as being void, illegal, arbitrary and in violation of principles of natural justice and consequently set aside the same and pass 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 grant interim suspension of the impugned attachment notice dated 21.02.2025 issued by the 2nd Respondent in Form GST DRC -13 under Section 79(1 )(C) of CGST/SGST Act, 2017, pending disposal of the Writ Petition as otherwise the petitioner will be put to severe loss and hardship Counsel for the Petitioner: SRI. L CHANDRA OBUL REDDY Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following Common Order: ... ^ APHC010185852025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3535] WEDNESDAY, THE TWENTY THIRD DAY OF APRIL TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE B V L N CHAKRAVARTHI WRIT PETITION Nos: 9376, 9385 & 9389 /2025 Between: Allu Ramana Murthy, ...PETITIONER AND Assistant Commissioner St and Others ...RESPONDENT(S) Counsel for the Petitioner: 1. L CHANDRA OBUL REDDY Counsel for the Respondent(S): 1.GP FOR COMMERCIAL TAX The Court made the following common order: (per Hon’ble Sri Justice R. Raghunandan Rao) The respondent had passed orders of assessment against one Sri A. R. Maruthi Raj, under the provisions of the Andhra Pradesh Value Added Tax Act, 2005 (here-in-after referred to as “VAT Act”), for the assessment periods 2014-15, 2015-16 & 2016-17. The 1®^ respondent, after giving due notice and opportunity of hearing, had passed orders of 2 RRR,J& BVLNQ J W.P.No.9376 of 2025 & batch assessment Raj, on account of hire to bus bearing No.AP 35 X 0288. determining various amounts to be due from Sri A. R. Maruthi charges received by him from M/s.APSRTC iin relation 2. Thereafter, the a bank attachment petitioner herein as well as his banker, had notice by the 2 been served with 21.02.2025, Sri A. R. Maruthi Raj nd respondent, dated raised against calling upon the banker to remit the tax dues ■ under the orders of assessment. 3. The petitioner, has approached this Court being aggrieved by the by way of these Writ Petitions. sa/d order of attachment, The petitioner has separate assessment orders. filed three Writ Petitions against three details of the The assessment orders and the consequential attachment orders are given below; Assessment Period W.P.No. Assessment order No. & Date '^H37032ToD474^ dated 30.03.2021 ^ZH3704^20D430077 dated 08.04.2022 ZH371120OD41178, dated 17.11.2020 Bank Attachm^ Notice Date 9376 of 2025 2015-16 21.02.2025 9385 of 2025 2016-17 21.02.2025 9389 of 2025 2014-15 21.02.2025 4. The contention of passed against clearing the dues of the third ^he petitioner a third party and the was that the assessment orders petitioner was made liable had been A for party. 3 RRR, J & BVLNC, J W.P.No.9376 of2025 & batch 5. The learned Government Pleader for instructions, submits that the petitioner had bearing No.AP 35 X 0288. The learned Government Commercial Tax, on purchased the said vehicle Pleader would contend that, by virtue of Sections 26, 27 & 30 of the VAT Act, the petitioner wouid become liable to discharge the tax dues of Sri A. FT Maruthi Raj. 6. Section 26 of the VAT Act provides for creation of a charge over the assets of a VAT dealer or TOT dealer or any other dealer under the VAT Act for recovery of tax dues. Section 27 of the VAT Act voids any transfer of property by a dealer with the intention to evade payment of tax and the authorities under the Act ot provisionally attach empowers any property, even during the pendency of the assessment proceedings so as to protect interests of revenue. Section 30 of the VAT Act stipulates that the liability of taxes of a dealer would have to be discharged by any other person to whom the business of the dealer has been transferred. 7. In the present case, Sri A. R. Maruthi Raj is said to have sold his bus to the petitioner. This would not business. mean, in any manner, transfer of 8. The provisions of Sections 26 & 27 would at best be available for recovery of taxes by sale of the bus that is said to have been sold to the petitioner. This right would also be subject to the conditions Section 27 of the VAT Act. stipulated under 4 RRRJ&BVLNCJ i W.P.No.9376 of2025 & batch ^ 9. In such circumstances, the respondent authorities, who could at best proceed against the vehicle sold by Sri A. R. Maruthi Raj, subject to the conditions set out under Section 27 of the VAT Act, and cannot seek to recover the taxes due of Sri A. R. Maruthi Raj from the petitioner. 10. Accordingly, these Writ Petitions are allowed, setting aside the orders of attachment mentioned above, leaving it open to the authorities to recover the tax dues from Sri A. R. Maruthi Raj and to take steps against the vehicle, if the conditions under Section 27 of the VAT Act are complied with. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. Sd/- SHAIK MOHD. RAFI ASSISTANT REGISTRAR //TRUE COPY// To SECTION OFFICER 1. The Assistant Commissioner (ST), Vizianagaram West Vizianagaram. Deputy Assistant Commissioner (ST), Vizianagaram Vizianagaram. 3. The Principal Secretary, Revenue (CT) Department, Building, Velagapudi Amaravathi, Guntur District. 4. The Chief Commissioner of State Taxes 5. One CC to SRI. L CHANDRA OBUL REDDY Advocate 6. Two CCs to GP FOR COMMERCIAL TAX Pradesh. [OUT] 7. Three CD Copies Circle, 2. The West Circle Secretariat Kunchanapalli, Guntur District. [OPUC] High Court Of Andhra vna HIGH COURT DATED;23/04/2025 COMMON ORDER WP.No’s.9376, 9385 & 9389 of 2025 ALLOWING THE WRIT PETITIONS’ WITHOUT COSTS