APHC010429282023 IN THE HIGH COURT OF ANDHRA PRADESH [3529]

AT AMARAVATI (Special Original Jurisdiction)

WEDNESDAY, THE TWENTY FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 22486/2023 Between:

1. M /S TATA POWER SOLAR SYSTEMS LTD, D. NO.

12/4593, KOTA STREET, PRODDATUR, YSR KADAPA DISTRICT, ANDHRA PRADESH, REP. BY ITS SR. MANAGER, TAXATIONS, FINANCE AND ACCOUNTS, MR. C.A. SURESH GOENKA.

...PETITIONER AND

1. T HE DEPUTY COMMISSIONER ST, SPECIAL CIRCLE, KADAPA DIVISION, 1/499, OPP. YSR GUEST HOUSE, SMITH ROAD, NEAR ZILLA PARISHAD, KADAPA-516001, YSR DISTRICT, ANDHRA PRADESH.

2. T HE ASSISTANT COMMISSIONER ST, PRODDATUR-II CIRCLE, 24/586, RAMESWARAM ROAD, VASANTHA PETA, PRODDATUR, YSR KADAPA DISTRICT - 516164, ANDHRA PRADESH.

3. T HE STATE OF ANDHRA PRADESH, REP. BY THE PRINCIPAL SECRETARY TO THE GOVERNMENT, REVENUE (CT) DEPARTMENT, A.P. SECRETARIAT BUILDINGS, VELAGAPUDI, GUNTUR DISTRICT, ANDHRA PRADESH.

4. T HE 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 to issue an appropriate Writ, Order or Direction, more particularly in the nature of MANDAMUS declaring that the impugned Assessment, Penalty and Interest Order in Form GST DRC-07 vide D1N3721062326528, dated 21- 06-2023, passed by the First Respondent for the Tax Periods 2017-18 to 2019-20 under the CGST, SGST and 1GST Acts, 2017, is without jurisdiction, without authority, violative of the principles of natural justice, contrary to law, arbitrary, capricious, contrary to prescribed procedure and illegal and even on merits not sustainable and consequently set aside the same and pass such 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 be pleased to grant stay of all further proceedings, including recovery of the tax, interest and penalty, pursuant to the impugned Assessment, Penalty and Interest Order in Form GST DRC-07 vide D1N3721062326528, dated 21-06-2023, passed by the First Respondent for the Tax Periods 2017-18 to 2019-20 under the CGST, SGST and IGST Acts, 2017, and pass such Counsel for the Petitioner:

1. DODDALA PRUDHVI TEJA Counsel for the Respondent(S):

1. GP FOR COMMERCIAL TAX

2. Y V ANIL KUMAR (Central Government Counsel)

The Court made the following order:

(per Hon’ble Sri Justice R. RaghunandanRao)

The petitioner which is the business of providing services of installation and communication etc of solar power generating systems had been assessed under the GST Act for the Tax period 2017-18 to 2019-20 by way of an order dated 21.06.2023. The petitioner contended that turnover of the petitioner would have to be treated as a composite supply of services and goods falling within Notification No.01/2017-Central Tax (Rate) dated 28.06.2017. However, the assessing authority took the view that the services and goods supplied by the petitioner would have to be treated as works contract, in as much as the setting up of solar power generating systems would result in construction of immovable property.

2. The very same issue had been considered by a Division Bench of this Court, in W.P.No.20096 of 2020, where this Court by order dated 10.01.2025 had held that the supply of solar power generating systems is a composite supply and not would amount to a works contract.

3. Following the said Judgment, this Writ Petition is allowed holding that the turnover of the petitioner, for the relevant assessment years, should be taxed by treating the said turnover to be turnover relating to composite supply.

4. Needless to say, the order of assessment, dated 21.06.2023, is set aside and the matter is remanded back to the assessing authority