S Immam Khasim Vs the Assistant Commissioner — GST and Indirect Tax | Andhra Pradesh HC (2026)

S Immam Khasim Vs the Assistant Commissioner — GST and Indirect Tax | Andhra Pradesh HC (2026)

What the court decided

AI extract

Outcome

Writ Petition disposed of with directions: (i) respective departments to ascertain and release the GST amount payable to the petitioner on account of contracts executed by him on or before 15.06.2026, completing the exercise within four months of receipt of the order; (ii) assessment order dated 17.01.2025 passed by the 1st Respondent, Assistant Commissioner (ST), Nandyal-II Circle, set aside and remanded to the assessing authority to consider interest/penalty and invocation of Section 74 GST Act; (iii) petitioner at liberty to approach the appropriate authority under the GST Act for remission of interest/penalty in view of the special circumstances and the default of Government agencies in paying GST in time; no order as to costs; pending miscellaneous applications closed.

Issue for consideration

Whether the assessment order dated 17.1.2025 (period 2023-24, Form DRC-07) issued by the 1st Respondent without affording sufficient opportunity, with orders uploaded on the portal as additional orders, is illegal, arbitrary and in gross violation of principles of natural justice, warranting that the assessment be redone following those principles. +2 more

Ratio / Principle

The respective departments are directed to ascertain and release the GST amount payable to the petitioner on account of the contracts executed by him, on or before 15.06.2026.

Key takeaways

The said exercise of ascertaining and releasing the GST amount payable shall be completed within a period of four (04) months from the date of receipt of the order.ratio¶35
On interest and penalty, it is open to the petitioner to approach the appropriate authority under the GST Act for remission of payment of interest or penalty, taking into account the special circumstances of the case and the fact that non-payment is said to be on account of the default of Government agencies in paying the GST in time.ratio¶36
For the purpose of deciding the question of payment of interest and penalty and whether Section 74 of the GST Act can be invoked, the order of assessment dated 17.01.2025 passed by the 1st Respondent, Assistant Commissioner (ST), Nandyal-II Circle, is set aside and remanded back to the assessing authority for considering this aspect.

Detailed headnote1 paragraphs

Goods and Service Tax — Assessment order dated 17.01.2025 for tax period 2023-24 in Form DRC-07 issued by Assistant Commissioner (ST), Nandyal-II Circle without affording sufficient opportunity, uploaded on portal as additional orders — Writ Petition by works contractor arising out of facts similar to W.P.No.42350 of 2018 and batch (disposed of by Division Bench on 17.09.2024) — Petition disposed of with directions: departments to ascertain and release GST amount payable to petitioner on contracts executed by him on or before 15.06.2026, exercise to be completed within four months of receipt of order; assessment order set aside and remanded to assessing authority to consider payment of interest and penalty and whether Section 74 of GST Act can be invoked; petitioner free to seek remission of interest/penalty under GST Act in view of special circumstances and alleged default of Government agencies in paying GST in time — No order as to costs (Andhra Pradesh HC, Div. Bench of R. Raghunandan Rao and T.C.D. Sekhar JJ., 05.05.2026).

[3529]

APHC010323552025

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

TUESDAY,THE FIFTH DAY OF MAY TWO THOUSAND AND TWENTY SIX

PRESENT

THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION NO: 16447/2025

Between:

S IMMAM KHASIM, WORKS CONTRACTOR, (GSTIN 37ENPPK1176P1Z4) REP. BY ITS PROPRIETOR, MR. S. IMMAM KHASIM, D.NO.5/48, MAIN ROAD, REDDIPALLI VILLAGE, SANJAMALA MANDAL NANDYAL - 518165, KURNOOL DISTRICT, ANDHRA PRADESH .

...PETITIONER

AND

THE ASSISTANT COMMISSIONER, (ST), NANDYAL-LL CIRCLE, KURNOOL DISTRICT, ANDHRA PRADESH.

STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY TO GOVERNMENT, REVENUE (CT-II) DEPARTMENT, SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT.

THE UNION OF INDIA, REP. BY ITS SECRETARY (FINANCE) MINISTRY OF FINANCE, NORTH BLOCK NEW DELHI 110001 .

...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 appropriate writ or order or direction declaring the action of the 1st Respondent in issuing assessment order dated 17.1.2025 for the period 2023-24 under the Goods and Service Tax Act, 2017 in Form DRC -07 in not affording sufficient

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RRR,J & TCDS,J W.P.No.16447 of 2025

opportunity and uploading the orders on the portal in additional orders, as illegal, arbitrary, contrary to law and in gross violation of principles of natural justice and consequently direct the 1st Respondent to redo the assessment following the principles of natural justice 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 recovery of the disputed demand pursuant to the impugned assessment order dated 17.1.2025 passed by the 1st Respondent for the tax period 2023-24, pending disposal of the Writ Petition as otherwise the Petitioner will be put to severe loss and hardship

Counsel for the Petitioner:

1.SRINIVASA RAO KUDUPUDI

Counsel for the Respondent(S):

1.GP FOR COMMERCIAL TAX

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RRR,J & TCDS,J W.P.No.16447 of 2025

The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao)

This Writ Petition arises out of facts similar to the facts in W.P.No.42350

of 2018 and batch, which had been disposed of by a Division Bench of this Court, dated 17.09.2024.

In the circumstances, this Writ Petition is disposed of with the following directions:

The respective departments are directed to ascertain and release the G.S.T amount payable to the petitioner on account of the contracts executed by him, on or before 15.06.2026.

The said exercise shall be completed within a period of four(04) months from the date of receipt of this order.

As far as the interest and penalty are concerned, it would be open to the petitioner to approach the appropriate authority, under the G.S.T. Act, for remission of payment of interest or penalty, taking into account the special circumstances of this case and after taking into account the fact that non-payment is said to be on account of the default of the Government agencies in paying the G.S.T in time.

For the purpose of deciding the question of payment of interest and penalty and Section 74 of G.S.T Act can be invoked or not, the order of assessment, dated 17.01.2025, passed by the 1^st RespondentAssistant Commissioner (ST), Nandyal-II Circle, is set aside and is remanded back to the assessing authority for considering this aspect.

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RRR,J & TCDS,J W.P.No.16447 of 2025

There shall be no order as to costs.

As a sequel, pending miscellaneous applications, if any, shall stand

closed.

_______________________ R RAGHUNANDAN RAO, J

________________ T.C.D. SEKHAR, J

Date: 05.05.2026 RMD

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RRR,J & TCDS,J W.P.No.16447 of 2025

252

THE HON’BLE SRI JUSTICE R RAGHUNANDAN RAO

AND

THE HON’BLE SRI JUSTICE T.C.D. SEKHAR

WRIT PETITION NO: 16447 of 2026

(per Hon’ble Sri Justice R. Raghunandan Rao)

05.05.2026

RMD