Andhra Pradesh High Court – Amravati
M/S. Sri Shakthi Communications, vs The Assistant Commissioner Of State … on 2 July, 2025
Author: R.Raghunandan Rao
Bench: R Raghunandan Rao
APHC010160282025
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI [3541]
(Special Original Jurisdiction)
WEDNESDAY,THE SECOND DAY OF JULY
TWO THOUSAND AND TWENTY FIVE
PRESENT
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SMT JUSTICE SUMATHI JAGADAM
WRIT PETITION NO: 8150/2025
Between:
1. M/S. SRI SHAKTHI COMMUNICATIONS,, REPRESENTED BY
SHRI GADILINGANA GOWD YEMMIGANUR, ITS PROPRIETOR.
81 17 D, RAMRAHIM NAGAR, KURNOOL, ANDHRA PRADESH,
518003.
...PETITIONER
AND
1. THE ASSISTANT COMMISSIONER OF STATE TAXES,
KURNOOL-LLL CIRCLE, KURNOOL DIVISION, BESIDE INDUS
SCHOOL, GOOTY ROAD, KURNOOL -518002.
2. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS
PRINCIPAL SECRETARY, REVENUE DEPARTMENT
(COMMERCIAL TAX), A.P. SECRETARIAT, VELEGAPUDI.
3. UNION OF INDIA, DEPARTMENT OF REVENUE,
REPRESENTED BY ITS SECRETARY (REVENUE), NORTH
BLOCK, NEW DELHI.
...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 a writ of mandamus or any other writ,
direction or order quashing the proceedings of the 1st Respondent in the
issuance of show cause notice dated 01.07.2023 and Assessment Order
passed vide DIN No. DIN3729122315748 (Annexure P-1) (hereinafter
referred to as ‘demand order’) dated 28.12.2023 for the period from FY
2017- 18, without the issuance of the mandatory tax intimation notice in
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form DRC-01A under Rule 142(1A) of the COST Rules. 2017 as
arbitrary, unconstitutional, unreasonable, and in violation of the principles
of natural justice. B. And to 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 stay the operation of the proceedings of the 1st
Respondent in Demand Order issued vide DIN No. Assessment Order
passed vide DIN No. DIN3729122315748 dated 28.12.2023 for the FY
2017-18, in the interest of justice and pass
IA NO: 2 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 order amendment of main prayer in WP No. 8150
of 2025 as below- “For the reasons stated in the affidavit filed in support
of the Writ Petition, it is prayed that: – A. The Hon‟ble Court may be
pleased to issue a writ of mandamus or any other writ, direction or order
quashing the proceedings of the 1®* Respondent in the issuance of
show cause notice dated 01.07.2023 and Assessment Order passed vide
DIN No. DIN3729122315748 (Annexure P-1) (hereinafter referred to as
„demand order‟) dated 28.12.2023 for the period from FY 2017-18,
without the issuance of the mandatory tax intimation notice in form DRC-
01A under Rule 142(1 A) of the CGST Rules, 2017 as arbitrary,
unconstitutional, unreasonable, and in violation of the principles of natural
justice. B. The Hon‟ble Court may be pleased to issue a writ of
mandamus or any other writ, direction or order directing the 1®*
Respondent to allow the Petitioner to amend the GSTR-3B return filed for
November‟2017 as per the Judgement of the Hon‟ble Supreme Court in
the case of Central Board of Indirect Taxes and Customs vs Aberdare
Technologies Pvt. Ltd. (2025) 29 Centax 10 (S.C.), accordingly direct the
1®* Respondent to conduct a fresh assessment based on the amended
return filed for the tax period November‟2017. C. And to pass such other
orders or further orders as the Hon‟ble Court may deem fit and proper in
the facts and circumstances of the case.” instead of “For the reasons
stated in the affidavit filed in support of the Writ Petition, it is prayed that
a. The Hon‟ble Court may be pleased to issue a writ of mandamus or any
other writ, direction or order quashing the proceedings of the 1®*
Respondent in the issuance of show cause notice dated 01.07.2023 and
Assessment Order passed vide DIN No. DIN3729122315748 (Annexure
P-1) (hereinafter referred to as „demand order‟) dated 28.12.2023 for the
period from FY 2017-18, without the issuance of the mandatory tax
intimation notice in form DRC-01A under Rule 142(1 A) of the COST
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Rules, 2017 as arbitrary, unconstitutional, unreasonable, and in violation
of the principles of natural justice, And to pass
IA NO: 3 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 permit the Petitioner to file the additional
affidavit and the Hon‟ble Court may be peruse as a part and parcel of the
Writ Petition.
Counsel for the Petitioner:
1. ANIL KUMAR BEZAWADA
Counsel for the Respondent(S):
1. GP FOR COMMERCIAL TAX
The Court made the following order:
(per Hon’ble Sri Justice R. Raghunandan Rao)
The petitioner which is in the business of sale and marketing of cell
phones had been registered with GST Department under the GST
regime. However, the registration of the petitioner was cancelled by an
order, dated 20.07.2023, on the ground of non-furnishing of GST returns
for a continuous period of six months.
2. In a parallel proceeding, the 1st respondent had initiated
proceedings under Section 73 of the GST Act, 2017, by way of a show
cause notice, dated 01.07.2023, proposing to reverse certain input tax
credits granted to the petitioner along with interest and penalty under
Section 73 of the CGST Act, 2017. After granting an opportunity of
hearing to the petitioner, the 1st respondent passed a demand order,
dated 28.12.2023, for the period 2017-2018 raising claim for tax of
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Rs.1,95,36,841/-, interest for delayed payment of tax, under Section 50 of
the CGST Act, for a sum of Rs.2,01,07,423/-, and penalty amount of
Rs.19,53,684/- under Section 73(1).
3. The petitioner being aggrieved by this order, has approached
this Court, by way of the present Writ Petition.
4. The primary grounds raised by the petitioner are that
necessary show cause notice under Section 142(1)(A) of the CGST Act
had not been issued prior to the commencement of the proceedings
culminating in the demand order. Secondly, the demand order as well as
the show cause notices were issued after the expiry of period of limitation
under Section 73(10) and 70(2) of the GST Act. Apart from this, the
petitioner also claims that there is violation of principles of natural justice
as adequate opportunity was not given to the petitioner.
5. Learned counsel for the petitioner would draw the attention of
this Court to the judgments of this Court, dated 12.02.2025, in
W.P.No.35710 of 2022, the judgment dated 05.03.2025 in W.P.No.3480
of 2021 and batch and the judgment reported in 2023 (12 Centax 198
(AP) in the case of New Morning Star Travels vs. Deputy
Commissioner. In these judgments, this Court had taken the view that
non-issuance of a notice under Section 142(1)(A) for any assessment
5
period prior to the amendment of Section 142(1)(A) carried out on
15.10.2020 would render any assessment proceedings invalid.
6. In the present case, it was not disputed by the Revenue that
no such notice under Section 142(1)(A) had come to be served on the
petitioner prior to the assessment proceedings being taken up.
7. In the circumstances, following the aforesaid judgments of
this Court, the demand order, dated 28.12.2023, requires to be set aside
and is accordingly set aside.
8. The Writ Petition is disposed of setting aside the demand
order, dated 28.12.2023, and remanding the matter back to the assessing
authority for completing the assessment after following the necessary
procedure set out under the provisions of the GST as well as the rules
made thereunder. Needless to say, the period between the date of the
passing of the impugned order till the receipt of this order shall be
excluded for the purpose of limitation. There shall be no order as to costs.
As a sequel, miscellaneous petitions, pending if any, shall stand
closed.
_______________________
R.RAGHUNANDAN RAO,J
___________________
SUMATHI JAGADAM,J
RJS
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HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO
HON’BLE SMT JUSTICE SUMATHI JAGADAM
WRIT PETITION No.8150 of 2025
(per Hon‟ble Sri Justice R. Raghunandan Rao)
Dt: 02.07.2025
RJS