GST Not Leviable On Interest/Penalty Charged By Chit Fund Companies For Delayed Payment Of Monthly Subscriptions: AP High Court

The Andhra Pradesh High Court held that interest and penalty collected by chit fund companies from defaulting subscribers for delayed payment of instalments are not taxable under GST. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether the interest/penalty collected for the delay in payment of the monthly subscription by the members forms a supply under GST. In the case at hand, the petitioner was a chit fund company engaged in the business of running chit schemes. The...

GST Not Leviable On Interest/Penalty Charged By Chit Fund Companies For Delayed Payment Of Monthly Subscriptions: AP High Court

The Andhra Pradesh High Court held that interest and penalty collected by chit fund companies from defaulting subscribers for delayed payment of instalments are not taxable under GST. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether the interest/penalty collected for the delay in payment of the monthly subscription by the members forms a supply under GST. In the case at hand, the petitioner was a chit fund company engaged in the business of running chit schemes. The...

Andhra Pradesh High Court Refuses To Set Aside Piracy Conviction, Directs Cassette Shop Owner To Serve Sentence

The Andhra Pradesh High Court has refused to interfere with the conviction of a Proddatur shop owner for selling and possessing pirated audio cassettes, directing him to surrender before the trial court to undergo the remaining sentence. Justice Subhendu Samanta, in an order passed on December 3, 2025, upheld the findings of the trial court and the Sessions Court, which had found the man guilty under Sections 63, 65 and 68A of the Copyright Act, 1957. The court held that no ground was made out...

S.62 CGST Act | Filing Pending Returns Automatically Withdraws Best-Judgment Assessment: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that a best judgment assessment passed under Section 62 of the Central Goods and Services Tax Act, 2017 stands deemed withdrawn once the registered dealer files the pending returns along with payment of tax and applicable late fee, even if such returns are filed beyond the initially prescribed period. A Division Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar was hearing a batch of writ petitions filed by the assessee,...

Claim For Demurrage As Liquidated Damages Does Not Constitute Debt Until Liability Is Determined: Andhra Pradesh High Court

The Andhra Pradesh High Court refused to grant interim relief for attachment of goods and security under section 9 of the Arbitration and Conciliation Act, 1996 (Arbitration Act) holding that the liquidated damages in the form of demurrage does not constitute debt until the liability is determined by an arbitral award. Justice Challa Gunaranjan held that “petitioner has moved the present petition nearly after three years, therefore, as observed by Hon'ble Apex Court, if the applicant...

[CGST Act] Absence Of Document Identification Number Doesn't Render Assessment Orders Void: Andhra Pradesh High Court

The Andhra Pradesh High Court held that absence of document identification number doesn't render assessment orders void.The bench consists of Justices R Raghunandan Rao and Sumathi Jagadam were addressing the issue where the assessee/petitioner has challenged the assessment orders passed against him. The main ground for challenge is the lack of a Document Identification Number on the orders, passed by the assessing officers.The assessee submitted that the instructions issued by the Central Board...

Sale Of Liquid Carbon Dioxide Is Liable To Be Taxed At 5%: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that the sale of liquid carbon dioxide is liable to be taxed at 5%. The Bench consists of Justices R Raghunandan Rao and K Manmadha Rao were addressing the issue of whether purified liquid Carbon Dioxide gas falls in the unclassified category of goods i.e., Schedule-V to the VAT Act, and is liable to be taxed @ 14.5% instead of 5%. In this case, the assessee/petitioner is in the business of purchasing carbon dioxide and production of liquid...

Second Execution Petition Cannot Be Entertained When First Petition Seeking Execution Of Arbitral Award Was Dismissed On Merits: Andhra Pradesh HC

The Andhra Pradesh High Court bench of Justice Ravi Nath Tilhari has held that a second execution petition for enforcing an award is not maintainable if the first was rejected on the ground that the award had not been set aside, solely because a signed copy was not filed with the application to set it aside under Section 34 of the Arbitration and Conciliation Act, 1996 (Arbitration Act). It also held that if valid grounds existed for setting aside the award, its execution cannot be ...

Proceedings Before Registrar U/S 62 Of AP Cooperative Societies Act Not Arbitration, Provisions Of A&C Act Will Not Apply: Andhra Pradesh HC

The division bench of Andhra Pradesh High Court consisting of Justices R Raghunandan Rao and Maheswara Rao Kuncheam has observed that when proceedings are held before the Registrar under A.P. Cooperative Societies Act, 1964, such proceedings cannot be termed as arbitral proceedings.Accordingly, it was held that no provision of the Arbitration and Conciliation Act, 1996 including Section 34 would be applicable to them. The appropriate remedy in such a case would be an appeal before the...

Notice Under Rule 142(1)(A) Of CGST Rules Must Be Issued Before Issuing Proper SCN: Andhra Pradesh High Court

The Andhra Pradesh High Court stated that a notice under Rule 142(1)(A) of CGST Rules must be issued before issuing proper show cause notice. The Division Bench of Justices R. Raghunandan Rao and K Manmadha Rao was addressing a case where notice under Rule-142(1)(A) of the CGST Rules was not issued to the assessees/petitioners, prior to the Orders of assessment. The assessees have challenged the orders of assessment before the Andhra Pradesh High Court. The assessee submitted...

Designated Committee Under Sabka Vishwas Scheme May Reject Application For Compounding Tax Over Bogus Documents: Telangana High Court

A division bench of the Andhra Pradesh High Court has dismissed a writ petition filed by M/s Diwakar Road Lines challenging the rejection of an application to compound all previous service tax by way of a one-time settlement. The bench held that even though the statute does not prescribe for the rejection of any application, the committee may reject an application when the documents relied upon are ingenuine. The Division Bench comprising of Justice R. Raghunandan Rao and Justice...

Named Arbitrator Cannot Be Replaced Unless There Is Evidence Of Partiality Or Bias Against Them: Andhra Pradesh HC

The Andhra Pradesh High Court bench of Justice Dhiraj Singh Thakur has held that the request for seeking appointment of an independent arbitrator other than the named arbitrator cannot be entertained if there is no evidence to show that the named arbitrator would act in a partial or biased manner. ' Brief Facts: M/s. Kranthi Grand DKNV Hospitalities (Applicant) entered into a Sub-Lease/Agreement with respondent No.1 – M/s. Manasa Estates and Hospitality Pvt. Ltd., who was a lessee of...