APHC010657722025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] WEDNESDAY, THE TENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 34211/2025 Between: 1. M/S. BHAVANI CONSTRUCTIONS,, 16/6/114, NEAR VIJAYA MAHAL, SRINIVASA AGRAHARAM, NELLORE-524001, REP. BY ITS MANAGING PARTNER, MR. DEVI REDDY PANKAJ REDDY. ...PETITIONER AND 1. THE ADDITIONAL COMMISSIONER ST, APPELLATE AUTHORITY, TIRUPATI, FLAT NO. 101, THUNGA RESIDENCY, RANI PARANTHAKA DEVI MARG, KORAMEENUGUNTA, RENIGUNTA ROAD, TIRUPATI, TIRUPATI DISTRICT, ANDHRA PRADESH - 517001. 2. THE DEPUTY COMMISSIONER ST, , REGIONAL GST AUDIT AND ENFORCEMENT OFFICE, TIRUPATI, GST BHAVAN, POST OFFICE ROAD, TIRUPATI, TIRUPATI DISTRICT, ANDHRA PRADESH. 3. THE SUPERINTENDENT OF CENTRAL TAX, NELLORE CENTRAL GST RANGE-3, GST BHAVAN, 4TH FLOOR, D. NO. 24-7- 205/2, PLOT NO. 121, 12TH ROAD, MAGUNTA LAYOUT, NELLORE, SPSR NELLORE DISTRICT, ANDHRA PRADESH - 524003. 4. THE STATE OF ANDHRA PRADESH, REP. BY THE PRINCIPAL SECRETARY TO THE GOVERNMENT, REVENUE (ST) DEPARTMENT A.P. SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT, ANDHRA PRADESH. 2 RRR,J & TCDS,J W.P.No.34211 of 2025 5. THE UNION OF INDIA, REP. BY ITS SECRETARY (FINANCE), MINISTRY OF FINANCE, NORTH BLOCK, NEW DELHI - 110001. 6. THE ANDHRA PRADESH INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED, (GOVT, OF A.P. UNDERTAKING), PLOT NO. 1, I.T. PARK, MANGALAGIRI, GUNTUR DISTRICT, ANDHRA PRADESH, REP. BY ITS MANAGING DIRECTOR. ...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 topleased to issue an appropriate Writ, Order or Direction more particularly in the nature of MANDAMUS declaring that the impugned Assessment Order (Rectified Order) in Form GST DRC-08, vide DIN371710287468, dated 17-10-2023, passed by the Second Respondent for the Tax Periods 2019-20, 2020-21, and 2021- 22 under the COST and SGST Acts, 2017, imposing GST @18percent on the Works Contracts (including Public Roads) executed by the Petitioner for API 1C which is a Government Entity up to 31- 12-2021, as upheld in Appeal by the First Respondent vide CTD Order No. DIN3729092566254, dated 29-09-2025, is contrary to SI. No. 3 (vi) of the Notification no. 11/2017-Central Tax (Rate), dated 28-06-2017 as amended by Notification no. 20/2017-Central Tax (Rate), dated 22-08-2017 and Notification no. 24/2017-Central Tax (Rate), dated 21-09-2017, is without jurisdiction, contrary to law and illegal and consequently set aside the same or alternatively in case it is held that the rate of tax @ 18percent is correct, direct the APIIC/ Respondent no. 6 to pay the differential tax @ 6percent with interest and penalty as imposed in the impugned order, in respect of works executed up to 31- 12-2021 either to the Petitioner to enable it to pay to the Department or directly to the Department to the Account of the Petitioner and pass IA 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 pleased to grant stay of all further proceedings, including recovery of tax, penalty and interest, pursuant to the impugned Rectification Order in Form GST DRC-08, vide DIN3717102387468, dated 17-10- 2023, passed by the Second Respondent for the Tax Periods 2019-20, 2020-21 and 2021-22 under the CGST and SGST Acts, 2017, and pass 3 RRR,J & TCDS,J W.P.No.34211 of 2025 Counsel for the Petitioner: 1. G NARENDRA CHETTY Counsel for the Respondent(S): 1. SANTHI CHANDRA 2. GP FOR COMMERCIAL TAX 4 RRR,J & TCDS,J W.P.No.34211 of 2025 The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao) Heard Sri G. Narendra Chetty, learned counsel for the petitioner, Smt. Santhi Chandra, learned Standing Counsel appearing for the 6th respondent – M/s. A.P.I.I.C. and Sri S. A. V. Sai Kumar, learned Government Pleader for Commercial Taxes appearing for the respondents. 2. The petitioner herein, which had executed certain works contracts for M/s. A.P.I.I.C., was assessed to tax, for the period 2019-2020, 2020-2021, 2021-2022 & 2022-2023, by way of a common order of assessment, dated 17.10.2023, passed by the 2nd respondent. In this Order, the 2nd respondent, rejecting the claim of the petitioner for such works contracts could be taxed only @ 12%, and imposed G.S.T. @ 18%, on the works contracts executed by the petitioner for M/s. A.P.I.I.C. 3. Aggrieved by this Order, the petitioner has approached the 1st respondent, by way of an Appeal, which came to be dismissed, on 29.09.2025. 4. During the pendency of the Appeal, the petitioner had approached the M/s. A.P.I.I.C., for reimbursement of default rate of tax between 12% & 18%. On the entire turnover relating to the works executed by the petitioner to M/s. A.P.I.I.C., the Executive Officer, A.P.I.I.C. – Industrial Area Local Authority (IALA), Mallavalli, has issued a certificate, dated 16.10.2025, stating that the roads, laid by M/s. A.P.I.I.C., in the Model Industrial Park, Mallavalli, are public roads and are not for the commercial benefit of M/s. A.P.I.I.C. 5 RRR,J & TCDS,J W.P.No.34211 of 2025 5. The petitioner has now approached this Court, by way of the present Writ Petition, challenging the Order of Assessment as well as the Order-in-Appeal, on the ground that, both the parties had treated all the works executed by the petitioner as works, which were for the benefit of commercial interest for M/s. A.P.I.I.C. (IALA) and the Executive Officer, by a Certificate, dated 16.10.2025, clearly makes out a case for reducing the rate of tax. The payment of tax which relates to @ 12%, is a question which requires to be gone into by this Court and it would only be appropriate to set aside the Order-in-Appeal as well as the Original Order of Assessment and to remand the matter back to the 2nd respondent for considering this objection and to pass fresh orders of assessment. 6. Needless to say, the 2nd respondent would pass separate orders, in relation to the four tax periods, after considering the turnover, relating to the laying of roads in the Mallavalli Industrial Park. 7. As far as all the other turnovers relating to works executed in favour of M/s. A.P.I.I.C. are concerned, the rate of tax @ 18% does not require interference by this Court and the same would have to be reimbursed to the petitioner by M/s. A.P.I.I.C. within a period of three (03) months from the date of receipt of this Order. 8. Accordingly, this Writ Petition is disposed of. There shall be no order as to costs. 6 RRR,J & TCDS,J W.P.No.34211 of 2025 As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J _________________ T.C.D. SEKHAR, J Date:10.12.2025 KPV 7 RRR,J & TCDS,J W.P.No.34211 of 2025 200 THE HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO AND THE HON'BLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION No.34211 of 2025 (per Hon’ble Sri Justice R. Raghunandan Rao) 10.12.2025 KPV