Dismissed

M/s Vasavi Agencies, v. The Assistant Commissioner - Central Tax

Andhra Pradesh HC4 Dec 2024WP/12984/2024

Case brief

AI extract

What is this about?

In WP No. 12984 of 2024, the High Court of Andhra Pradesh disposed of a writ petition filed by M/s. Vasavi Agencies challenging GST demands and retrospective rule amendments. The Court held the petitioner is entitled to input tax credit benefits under Circular No. 237/31/2024-GST subject to fulfillment of prescribed conditions and procedures.

What the court decided

AI extract

M/s Vasavi Agencies, Vs The Assistant… — GST and Indirect Tax | Andhra Pradesh HC (2024)

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction)

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THURSDAY, THE FIFTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FOUR

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PRESENT

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HON’BLE SRI JUSTICE DHIRAJ SINGH THAKUR, THE CHIEF JUSTICE AND

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HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO

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WRIT PETITION NO: 12984 OF 2024

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Between:

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M/s. Vasavi Agencies, Represented by its Partner Sateesh Gupta Satrasala 10/192, Mundi Bazar, Guntakal - 515801.

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...PETITIONER

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AND

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The Assistant Commissioner - Central Tax, Anantapur Division, Anantapur.

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The Union of India, Through the Secretary, Ministry of Finance, North Block, New Delhi-110001.

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The State of Andhra Pradesh, Represented by its Principal Secretary, (Revenue CT), Secretariat, Velagapudi, Amaravati.

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...RESPONDENTS

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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 of mandamus or any other appropriate writ or Order or Direction declaring a) The action of the Respondent-1 in denial of the Rectification of Application or denial of the Grievances with GST Common Portal and passing such Order or Orders for without serving such e-SCN 1EYL02040923476, dated 28.09.2023, is arbitrary, illegal and in Violation of the Principles of Natural Justice and also contrary to Section 73, 108, 160(2) and 161 of the CGST/APGST Act 2017, (b)The^actionofthe Respondent-1 in passing the Order with Form GST DRC07 with its

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Summary of the Order vide reference No.ZD371223023531V, dated^ 31.12.2023, without serving such Order vide Order No.3CEEYL0204A 122300459, dated 07.12.2023 without signature and thereby confirming the demand of input on IGST for the place of State of Andhra Pradesh as Karnataka is contrary to the Section 20 of the IGST Act 2017, and levying Penalty with equal amount of tax under Section 73 of the CGST/APGST Act 2017, is illegal, arbitrary and contrary to the provisions^ofthe CGST/APGST Act 2017, and set aside the Form GST DRC-07, dated 31.12.2023 in the interest of justice and equity, (c) The action of the Respondent-1 in passing the Order-in-Original No.30/2023 (GST) (AC), dated 06.12.2023, is contrary to law, non- reasoned Order and declare the Proceedings^and action or actions of the Respondent-1 are illegal, arbitrary and weight of evidence read with Section 16(4), 59, 73, 122(2)(a) of the GST Act, and set aside such Order dated 06.12.2023 deems fit and proper circumstances of the case, (d)The retrospective Amendment made to Rule 61 of APGST Rules 2017 by amending Sub-Rule (5) thereof and deleting Sub-Rule (6) thereof, with retrospective effect as it is not only violative of Section 164 of the Act, but also in violation of Article 19(l)(g), 2k6A, 265,^{269Aand300Aofthe} Constitution of India, (e) Form GSTR-3B, as it is enabled with tile GST Common Portal contrary to Section 164 of the CGST/APGST Act 2017 and declare illegal, ultra-virus and violation of the provisions of the CGST/APGST Act 2017, (f) Restricting the credit under Section 16(4) of the CGST/APGST Act 2017 is illegal, ultra-virus and violation of Article of 14, 19(l)(g), 20, 264A, 265, 269A and 300A of the Constitution of India, as the conditions prescribed under Section 16(2) of the Act, is a non-obstante provision having overriding effect on Section 16 of the Act as a whole, and if no such saving clause is exists in relation to such mandatory/underlying conditions of Section 16(2) in Section 16(4) of the Act, then restricting input due to non-availability of Return in Form GSTR-2 is not tenable or alternatively prayed the Flon’ble allow such credit or input.

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lA NO: 1 OF 2024

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Petition under Section 151 CPC praying that in the^{circumstances} stated in the affidavit filed in support of the writ petition, the High Court may be pleased to Stay the Operation of the Form GST DRC-07, dated 31.12.2023 and Order-in-Original No.30/2023(GST) (AC),^{dated06.12.2023} passed by the Respondent-1, pending disposal of the^{aboveWritPetition.}

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Counsel for the Petitioner: SRI NARENDRA KUMAR THOTTAMSETTY FOR Ms. KOTHA VEERA NAGA PALLAVI

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Counsel for the Respondent Nos.1 & 2 : SRI JOSYULA^BHASKARARAO (SR. SC FOR CBIC)

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Counsel for the Respondent No.3 : GP FOR COMMERCIAL^TAX

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The Court made the following: ORDER

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APHC010228232024

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IN THE HIGH COURT OF ANDHRA PRADESH Bench Sr.No:-40 [3446] AT AMARAVATI

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WRIT PETITION NO: 12984 of 2024

M/s Vasavi Agencies

...Petitioner

Vs.

The Assistant Commissioner - Central Tax and others

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...Respondents

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Advocate for Petitioner

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Mr. Narendra Kumar Thottamsetty representing Ms. Kotha Veera Naga Pallavi

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Advocate(s) for Respondent(s):

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Mr. Josyula Bhaskara Rao (Sr. Sc for CBIC)-R.1 & R.2

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GP for Commercial Tax - R.3

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CORAM :THE CHIEF JUSTICE DHIRAJ SINGH THAKUR SRI JUSTICE R RAGHUNANDAN RAO

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DATE : S**’ December, 2024

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PC:

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Learned counsel for the respondents does not deny the^factthatthe

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petitioner is entitled to the benefit of input tax^{creditundertheCentralGoods} & Services Tax Act, 2017 in terms of Circular No.237/31/2024-GST subject to the fulfillment of the conditions and the procedure prescribed therein.

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HG & RRRJ WP_12984_2024

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Be that as it may, we dispose of the present Writ Petition holding that the petitioner would be entitled to the benefit of the aforesaid Circular. In case any cause survives, it is open to the petitioner to approach this Court again. No order as to costs.

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Miscellaneous applications pending, if any, shall stand closed.

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Sd/- V. SAVITHRI GOWRI ASSISTANT REGISTRAR \

//TRUE COPY//

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