APHC010577072024 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3529]

(Special Original Jurisdiction)

TUESDAY,THE TWENTY FOURTH 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: 30783/2024 Between:

1. A DINARAYANA BOBBADI, S/O. LATE TAVITI NAIDU AGED ABOUT

48 YEARS R/O. 1/2, VENTATAPURAM POST, PEDDALINGALAVALASA SRIKAKULAM ...PETITIONER AND

1. S UPERINTENDENT OF CENTRAL TAX, TECHNICAL SECTION, VIZIANAGARAM CGST DIVISION VIZIANAGARAM, ANDLIRA PRADESH

2. D EPUTY COMMISSIONER OF CENTRAL TAX, VIZIANAGARAM CGST DIVISION, VIZIANAGARAM, ANDHRA PRADESH

3. A SSISTANT COMMISSIONER OF CENTRAL TAX, VISHAKAPATNAM CENTRAL CGST COMMISSIONERATE

4. P RINCIPAL COMMISSIONER OF CENTRAL TAX, VISHAKAPATNAM CGST COMMISSIONERATE

5. S TATE BANK OF INDIA, NEAR MAIN ROAD, BUS STAND ROAD, CHEEPURUPALLI, DISTRICT VIZIANAGARAM, ANDHRA PRADESH - 532128 ...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 tomay be pleased to issue a writ, order or direction. more particularly in the nature of a writ of mandamus declaring the Order in Original No. 20/2024-25-ST-AC dated 29-05-2024 bearing DIN 20240555YJ000009643E as being void, illegal. arbitrary, violative of Article 14 of the Constitution of India and consequently set aside the same and pass IA NO: 1 OF 2024 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 may be pleased to stay all further action including collection of tax pursuant to Order in Original No. 20/2024-25-ST-AC dated 29-05-2024 bearing DIN

20240555YJ000009643E and pass IA NO: 2 OF 2024 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 may be pleased to suspend the operation of the Notice u/s. 87 dated 26-11-

2024 addressed by the Respondent No, 3 to Respondent No. 5 and pass IA NO: 1 OF 2026 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 May be pleased to grant leave for filing reply in the Writ Petition No. 30783 of

2024 and pass Counsel for the Petitioner: 1. ANIL KUMAR BEZAWADA Counsel for the Respondent(S):

1. VENNA HEMANTH KUMAR(CENTRAL GOVERNMENT COUNSEL)

The Court made the following:

The Court made the following order: (per Hon’ble Sri Justice R. RaghunandanRao)

The Petitioner had declared a total income of Rs.98,88,351/- for the Financial Year 2015-16, and Rs.1,94,42,565/- for the financial year 2016-17, aggregating to Rs.2,93,30,916 in the Annual returns filed by the petitioner under the Income Tax Act.

2. The Respondent No.3, initiated proceedings under the Service Tax regime, contending that the income received by the petitioner arose out of services rendered and sought to tax the same.

3. The petitioner, after receiving the show cause notice, dated 06.02.2020, had submitted his explanation contending that the receipt of money, above, came out of the supply of man power, which was not taxable and that notification No.30/2012-ST dated 20.06.2012 had absolved the petitioner from paying service tax as said services was placed under the reverse charge mechanism, requiring the recipient of the service to pay the tax.

4. The 3^rd respondent passed an order dated 29.05.2024 rejecting the contentions of the petitioner and raising a demand of Rs.43,50,196/- as the tax payable under Section 73(1) of Finance Act, penalty of Rs.10,000/-, another penalty of Rs.1,35,400/- and further penalty of Rs.43,50,196/- on the ground that there was separation of Tax.

5. Aggrieved by the said order, the petitioner has approached this court by way of this present writ petition.

6. Sri Anil Kumar Bezawada, the learned counsel for the petitioner c