AP VAT Act | Tax Dept Must Specify Negligence Before Recovering Company Dues From Directors: Andhra Pradesh High Court

The Andhra Pradesh High Court at Amaravati has held that tax authorities cannot recover unpaid taxes under the Andhra Pradesh Value Added Tax Act, 2005, from directors of the company unless they first clearly spell out the negligence or breach of duty alleged against them. A Division Bench of Justice R Raghunandan Rao and Justice T. C. D. Sekhar clarified the scope of Section 24(5) of the Andhra Pradesh Value Added Tax Act, 2005. The court said that while the provision does allow directors of...

AP High Court Restores Arbitral Awards In Hindustan Shipyard Case; Says Arbitrators Can Modulate 'Exorbitant' Liquidated Damages

The High Court of Andhra Pradesh recently set aside a Trial Court's order that had earlier quashed thirteen arbitral awards against Hindustan Shipyard Limited (HSL) and its subcontractors. On 31st December 2025, the Division Bench comprising of Justices R. Raghunandan Rao and T.C.D. Sekhar, upholding the arbitral awards, stated that an arbitrator has the jurisdiction to modulate liquidated damages if they are found to be exorbitant or if the delay is attributable to both parties, and noted that...

Income Tax | Delay in Filing Form 10-B Due To COVID Cannot Deny S.11 Exemption: Andhra Pradesh High Court

The Andhra Pradesh High Court held that the exemption under Section 11 of the Income Tax Act cannot be denied merely on account of delay in filing the Form 10-B Audit Report when such delay was caused by the COVID-19 Pandemic. Justices Battu Devanand and A. Hari Haranadha Sarma observed that the assessee is a religious and charitable society and has to comply with the instructions issued by the Income Tax Department through their letter. Due to the Covid-19 Pandemic, the assessee could...

Notification Defining Jurisdiction Does Not Automatically Empower All Officers To Invoke S. 122 CGST Act: AP High Court

The Andhra Pradesh High Court held that a notification merely defining or fixing the territorial jurisdiction of officers cannot be construed as conferring the power to initiate penalty proceedings under Section 122 of the CGST Act. Section 122 of the Central Goods and Services Tax (CGST) Act, 2017 is the primary provision defining various GST-related offences and the specific monetary penalties applicable to them. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether...

APVAT | Value Added Tax Not Leviable On Offshore Sales Beyond Territorial Waters: Andhra Pradesh High Court

The Andhra Pradesh High Court held that Value Added Tax (VAT) under the Andhra Pradesh Value Added Tax Act (AP VAT) cannot be levied on sales beyond 12 nautical miles, as such transactions fall outside the State's territorial jurisdiction. Justices R. Raghunandan Rao and T.C.D. Sekhar stated that neither the State Legislature nor the Central Legislature would have the power to levy tax on the sale of goods made beyond the territorial waters of India. In the case at hand, 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...

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...