Date of reserved for orders : Neutral citation Date of pronouncement : 24.06.2026 Date of uploading : APHC010666122025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3591] WEDNESDAY, THE 24th DAY OF JUNE 2026 PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 34391/2025 Between: 1. JAYALAKSHMI MOTORS, BUSINESS PREMISES DOOR NO. 10/102/2A, JANAPADU ROAD, BEHIND K.P. TEMPLE, PIDUGURALLA - 522 413 PERMANENT ADDRESS D.NO. 2/18/1/1, OPP VIVEKANANDA SCHOOL, NEAR ANKALLAMMA TEMPLE, KAREMPUDI - 522614, REP. BY ITS PROPRIETOR SRI. MACHERLA RAMA KOTESWARA RAO, S/O. ANJANEYULU, AGED ABOUT 50 YEARS. ...PETITIONER AND 1. THE STATE OF AP, REP BY ITS PRINCIPAL SECRETARY, REVENUE (CT) DEPARTMENT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT, ANDHRA PRADESH. 2. THE ADDITIONAL COMMISSIONER STFAC, APPELLATE DEPUTY COMMISSIONER (CT), VIJAYAWADA, KRISHNA DISTRICT, ANDHRA PRADESH. 3. THE COMMERCIAL TAX OFFICERFAC, PIDUGURALLA GUNTUR DISTRICT, ANDHRA PRADESH. 2 4. THE DEPUTY COMMERCIAL TAX OFFICER I, PIDUGURALLA, MADANAPALIE, CHITTOOR DISTRICT. 5. THE DEPUTY COMMERCIAL TAX OFFICER, O/O. COMMERCIAL TAX OFFICER, CHILAKALURIPET CIRCLE, GUNTUR DISTRICT, ANDHRA PRADESH. ...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 appropriate writ, order or direction particularly in the nature of Writ of MANDAMUS declaring the impugned reassessment order dated 23-01-2019 in A.O. No. 167833 in TIN 37098425094 passed by the 3rd Respondent served on the Petitioner on 20-08-2024 in levying tax of Rs. 6,28,917/- for the tax periods 02/2013 to 01/2015 treating the same as under declaration of turnover as illegal, arbitrary, unjust, improper, without proper service, violative of principles of natural justice, contrary to audi alteram partem, as also violative of articles 14, 19(1)(g), 21, 265 and 300-A of Constitution of India and the judgements of the Honble High Court of Andhra Pradesh and also contrary to the nature of business and consequently to set aside the same 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 to STAY all further proceedings pursuant to the impugned reassessment order dated 23-01-2019 in A.O. No. 167833 in TIN 37098425094 passed by the 3rd Respondent and pass Counsel for the Petitioner: 1. M V J K KUMAR Counsel for the Respondent(S): 1. GP FOR COMMERCIAL TAX 3 THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 34391/2025 This Court made the following ORDER: (Per Hon’ble Sri Justice R. Raghunandan Rao) Heard Sri M.V.J.K.Kumar, the learned counsel for the petitioner and the learned Government Pleader for Commercial Tax appearing for the respondents. 2. The petitioner was in the business of sale of tractors and spare parts. The petitioner was registered under the APVAT Act and has been filing its returns from time to time. For the period 2014-2015, the petitioner was assessed to tax, by way of an order of assessment, dated 20.02.2015. Under this order of assessment, the petitioner was levied with tax at Rs.76,608/- which came to be paid by the petitioner. Thereafter, the petitioner is said to have intimated to the 3rd respondent that it was shutting down its business. However, the communication, which is said to have been given to the 3rd respondent is not available on record. 3. The petitioner has approached this Court, by way of the present writ petition being aggrieved by an order of re-assessment that is said to have been passed on 23.01.2019. It is the contention of the petitioner that the petitioner had closed down its business and vacated the business premises in the year 2015 and had not been served with any show-cause notice or order 4 of re-assessment, at any point of time. However, the petitioner received a demand notice calling upon the petitioner to pay an amount of Rs.13,36,942/-, and an equal amount of penalty by way of a notice, dated 20.06.2024. Immediately thereafter, the petitioner is said to have approached the 3rd respondent, by way of a letter, dated 19.08.2024, requiring the 3rd respondent to furnish a copy of the order, under which such a demand had been raised. 4. The 3rd respondent is said to have responded to the aforesaid letter of 19.08.2024 and furnished a copy of the re-assessment order, on 20.08.2024. Thereafter, the petitioner had moved an appeal along with an endorsement, dated 21.01.2025, that the impugned reassessment order was served on the petitioner only on 14.09.2024 and 22.09.2024. However, the appellate authority refused to entertain the appeal on the ground that it was beyond time. 5. Aggrieved by the refusal of the appellate authority to receive the appeal and aggrieved by the order of re-assessment order, dated 23.01.2019, the petitioner has approached this Court, by way of the present writ petition. 6. The main contention of the petitioner is that the order of re-assessment had been passed without any notice being given to the petitioner and that the said order of re-assessment was also not served on the petitioner. 7. The 3rd respondent has filed a counter-affidavit in which it is stated that the re-assessment proceedings had been taken up on the basis of audit objections raised by the audit party. The audit party is said to have raised an 5 objection as to the entitlement of the petitioner to claim Input tax credit and that the said entitlement would have to be restricted to 75% of the Input tax credit available to the petitioner. The 3rd respondent would also submit that a show-cause notice was sought to be served on the petitioner on the business premises of the petitioner and that the said show-cause notice was affixed to the wall of the business premises as the petitioner was not available in the business premises. The 3rd respondent would contend that the order restricting the Input tax credit entitlement of the petitioner to 75% of the available Input tax credit is a valid order and that the petitioner did not choose to file an appeal against the said order. It is contended that in such circumstances, the order has become final and the petitioner is liable to clear the dues raised under the said order. 8. The petitioner in his pleadings in the writ petition has specifically stated that the permanent address of the petitioner provided by him containing the registration certificate is Door No.2/18/1/1, Opposite to Vivekananda School, Near Ankallamma Temple, karempudi-522614 as the business premises was elsewhere. This contention of the petitioner has not been denied by the 3rd respondent. In such circumstances, any notice, could have been served on the petitioner only at the address shown in the registration certificate. As the case of the 3rd respondent was that the notice was served, by affixture only at the business premises, it must be held that there has been no service of notice, on the petitioner, prior to passing of the assessment order. 6 9. In such circumstances, it would have to be held that there has been a violation of principles of natural justice inasmuch as the impugned re- assessment order has been passed without an opportunity of hearing being given to the petitioner. 10. Accordingly, this Writ Petition is allowed setting aside the impugned order of re-assessment, dated 23.01.2019 and the matter is remanded back to the 3rd respondent to give adequate and proper opportunity of hearing to the petitioner b serving a notice to the petitioner at the address given in the cause- title of the writ petition and to pass orders after such opportunity. It is needless to say that it is open to the petitioner to raise all objections regarding maintainability of re-assessment proceedings and on the merits of the case. As a sequel, pending miscellaneous applications, if any, shall stand closed. _______________________ R RAGHUNANDAN RAO, J _______________________ TUHIN KUMAR GEDELA, J Date:24.06.2026 KA Whether the order is : Speaking Yes/No / Recorded Yes/No Reportable Yes/No / Non-Reportable Yes/No 7 THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 34391/2025 Date:24.06.2026 KA