Andhra Pradesh High Court
Check-Posts Cannot Value or Confiscate Goods in Transit: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that authorities stationed at GST check-posts lack jurisdiction to examine the valuation of goods or to confiscate and levy penalties merely because the goods are in transit. The Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar, observed that disputes relating to valuation and tax liability must be examined only by the jurisdictional assessing authority and not by proceedings initiated at the stage of interception under Sections 129 or...
Andhra Pradesh High Court Orders Formation Of Apex Committee To Recover Agricultural Land Conversion Tax Dues
The Andhra Pradesh High Court has recently directed the State's Chief Secretary to constitute an Apex Committee to identify defaulters and recover unpaid conversion tax dues under the Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006. A Division Bench of Chief Justice Dhiraj Singh Thakur and Justice Challa Gunaranjan ordered, “… we feel that steps have to be taken for ensuring recovery of the outstanding tax. We, therefore, direct the Chief Secretary of...
No CST If State Tax Already Paid On Inter-State Movement Of Goods: Andhra Pradesh High Court
The Andhra Pradesh High Court on 9 February held that once tax is levied and collected on goods under the Andhra Pradesh General Sales Tax Act (APGST Act), no Central Sales Tax (CST) can be imposed on their inter-State movement, even if statutory declaration forms such as C-Forms or F-Forms are not furnished or are defective. A Division Bench of Justice R Raghunandan Rao and Justice T.C.D. Sekhar allowed a petition challenging the CST assessment for the assessment year 2004–05, filed by Gourav...
Andhra Pradesh High Courts Rejects Sales Tax Exemption Claim Over Defective Form A-5
The Andhra Pradesh High Court on 9 February, refused to interfere with orders withdrawing sales tax exemption on commission sales, holding that Form A-5 declarations not bearing the official seal of the assessing authority cannot be treated as valid under the Andhra Pradesh General Sales Tax Rules, 1957. A dealer files Form A-5 to claim sales tax exemption on commission sales. A Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar was hearing a tax revision case filed by ...
No Separate GST On Chemicals Supplied Under Mud Engineering Contracts: Andhra Pradesh High Court
The Andhra Pradesh High Court has recently held that GST cannot be levied separately on mud engineering services and the supply of drilling chemicals, ruling that such contracts constitute a composite supply under the Goods and Services Tax law. A Division Bench comprising Justice R Raghunandan Rao and Justice T.C.D. Sekhar allowed a writ petition filed by Halliburton Offshore Services Inc., setting aside orders passed by the Authority for Advance Ruling and the Appellate Authority for Advance...
Sales Directly Linked To Export Cannot Be Taxed Under Central Sales Tax: Andhra Pradesh High Reaffirms
The Andhra Pradesh High Court has recently reiterated that where export is the direct result of a sale and the two form an integrated transaction that cannot be dissociated, such a sale is protected under Article 286 of the Constitution and cannot be subjected to State taxation. Explaining the law, the Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar held that a sale is “in the course of export” under Section 5(1) of the Central Sales Tax Act, 1956, when the sale itself...
Subsidised Sales Don't Bar ITC, Milling By-Products Not Taxable Under AP VAT: Andhra Pradesh High Court
The Andhra Pradesh High Court on 2 February held that input tax credit (ITC) cannot be disallowed merely because essential commodities are sold at subsidised prices fixed by the State Government. It further held that by-products such as broken rice, bran and husk retained by millers during the milling of paddy do not constitute a taxable disposal or transfer attracting levy under the Andhra Pradesh Value Added Tax Act, 2005. A Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar was...
No DIN? RFN On GST Orders Enough To Prove Digital Signature: Andhra Pradesh High Court
The Andhra Pradesh High Court has reiterated its view that the presence of a system-generated Reference Number (RFN) on GST orders issued through the portal is sufficient to establish that the document has been digitally signed. A Division Bench of Justice R Raghunandan Rao and Justice T.C.D. Sekhar dismissed a writ petition challenging GST assessment orders on the ground that they lacked physical signatures or a Document Identification Number (DIN). The bench held that once an order is issued...
Status Quo Ante Means Restoration, Can't Be Ordered Lightly: Andhra Pradesh High Court
The Andhra Pradesh High Court has recently set aside an ad interim order passed during arbitration proceedings that directed restoration of possession of leased premises, holding that such relief amounts to a mandatory injunction and cannot be granted lightly. A Division Bench of Justice Ravi Nath Tilhari and Justice Maheswara Rao Kuncheam said courts must record clear and justifiable reasons before directing restoration of an earlier state of affairs. "Such orders of „status quo ante‟ are...
GST Not Payable On Interest, Penalty For Delayed Chit Payments: Andhra Pradesh High Court
The Andhra Pradesh High Court has recently held that interest and penalties collected by a chit fund foreman from subscribers who delay payment of installments do not attract Goods and Services Tax, ruling that such amounts are exempt under GST law. A Division Bench of Justice R. Raghunandan Rao and Justice T. C. D. Sekhar said the foreman is legally required to ensure timely payment of the prize amount even if subscribers default. On this basis, the court, setting aside the rulings of the...
GST Proceedings Cannot Be Initiated Against Deceased Proprietor: Andhra Pradesh High Court Reiterates
The Andhra Pradesh High Court has recently reiterated that GST authorities cannot initiate assessment or adjudication proceedings in the name of a deceased proprietor, even where the tax demand relates to a period when the business was active. A Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar clarified that Section 93 of the Central Goods and Services Tax Act, a provision that allows recovery of tax payable by deceased persons, does not authorise the initiation of fresh...
