APHC010283152023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3529]

(Special Original Jurisdiction)

MONDAY, THE NINETEENTH DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 15151/2023 Between:

1. M /S SONA ENTERPRISES,, SOLE PROPRIETORSHIP, HAVING ITS REGISTERED OFFICE AT. D.NO. 21-35-8, THUMMALAPALLIVARI STREET, TOWN KOTHA ROAD, VISHAKAPATNAM-01 REPRESENTED BY ITS SOLE PROPRIETOR.SHAFI MOHMAD ...PETITIONER AND

1. A SSISTANT COMMISSIONER OF CENTRAL TAX, CENTRAL CGST DIVISION, 2ND FLOOR, D.NO.45-57-21, NEAR NH-5, NARSIMHANAGAR, AKKAYAPALEM, VISHAKAPATNAM - 530 024

2. S UPERINTENDENT OF CENTRAL TAX, MAHARANIPETA CGST RANGE, 1ST FLOOR, D.NO. 28-14-10, OPP. V MAX THEATRE, SURYABAGH, VISHAKAPATNAM - 530 020

3. T HE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL FINANCE SECRETARY TO GOVERNMENT(PFS), 2ND BLOCK, 1ST FLOOR, A.P. SECRETARIAT OFFICE, VELGAPUDI

4. U NION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE,DEPARTMENT OF REVENUE 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 any appropriate Writ, order or Direction, preferably a writ in the nature of Mandamus, to declare the Notice bearing C.No.V/04/01/2022-Arrears (P.F.-1) dated 18.04.2023 in Form DRC-13 dated 18.04.2023and Notice dated 11.05.2013 bearing DIN No.20230555YJ000000CAC4 in Form DRC-13and Letter bearii C.No.V/04/01/2022-Arrears(P.F.-1) dated 11.05.2023 issued by the 1St Respondent under Section 79(1)(c) of the Central Goods and Service Tax Act, 2017 and Andhra Pradesh Goods and Service Tax Act, 2017 and Notice bearing O.C. No.47/2023 dated 02.06.2022 and Notice bearing OC No. 53/2023 issued by 2nd Respondent and Letter bearing C.No V/04/012/2022- Arrears (P.F.1) dated U5.06.2023 issued by 1st Respondent as being arbitrary, illegal, violative of the provisions of CGST Act and APGST Act besides being unconstitutional and to consequently set aside the same and to direct the Respondents to refund the sum of Rs. 14,39,820/- being additional interest along with interest at the rate of 9percent in terms of the proviso to Section 56 of the CGST/APGST Act, 2017 and pass IA NO: 1 OF 2023 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 to suspend Notibe bearing C.No.V/04/01/2022-Arrears (P.F.-1) dated 18.04.2023 in Form DRC-13 dated 18.04.2023 and Notice dated 11.05.2013 bearing DIN No.20230555YJ000000CAC4 and Letter bearing C.No.V/04/01/2022- Arrears(P.F.-1) dated 11.05.2023 issued by the 1st Respondent under Section 79(1)(c) of the 'Central Goods and Service Tax Act, 2017 and Andhra Pradesh Goods and Service Tax Act, 2017 and'Notice bearing O.C. No.47/2023 dated 02.06.2022 and Notice bearing OC No. 53/2023 issued by 2nd Respondent and Letter bearing C.No V/04/012/2022-Arrears (P.F.1) dated 05.06.2023issued by 1st Respondent and refundthe recovery of Rs.

15,23,804/- and pass Counsel for the Petitioner:

1. JYOTHI RATNA ANUMOLU Counsel for the Respondent(S):

1. SANTHI CHANDRA (Sr. Standing Counsel for CBIC)

2. GP FOR FINANCE PLANNING The Court made the following Order:

The petitioner is a dealer in iron and steel scrap. As a part of its business, the dealer purchases scrap from Indian Railways. Under the Goods & Services Tax Act, 2017 [for short “the GST Act”], the tax payable on such purchase is to be paid by the petitioner, on a reverse charge mechanism basis. The said payment of tax is to be done, by way of deposit of cash, as the payment of tax, under the reverse charge mechanism, cannot be done by adjusting the tax liability against the input tax credit available in the credit ledger of the petitioner.

2. The petitioner had been filing its returns including GSTR-3B returns for