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2026 Supreme(Online)(AP) 9887

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

WRIT PETITION NO: 11760/2023

Between:

1. AVANTI FEEDS LIMITED, HAVING ITS CORPORATE OFFICE AT G 2, CONCORDE APARTMENTS, H. NO. 6-3-658, SOMAJIGUDA, HYDERABAD- 500082. REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. C. RAMACHANDRA RAO, JOINT MANAGING DIRECTOR

2. MR. A. INDRA KUMAR,, S/O (LATE) A. VENKATESHWAR RAO, AGED ABOUT 61 YEARS, CHAIRMAN AND MANAGING DIRECTOR, AVANTI FEEDS LIMITED, HAVING ITS OFFICE AT.G-2, CONCORDE APARTMENTS, H. NO. 6-3-658, SOMAJIGUDA, HYDERABAD 500082.

...PETITIONER(S)

AND

1. DEPUTY COMMISSIONER OF STATE TAX, OFFICE OF THE JOINT COMMISSIONER (ST), SPECIAL CIRCLE, RAJAMAHENDRAVARAM DIVISION, RAJAMAHENDRAVARAM.

2. PRINCIPAL COMMISSIONER OF STATE TAX, OFFICER OF THE CHIEF COMMISSIONER OF STATETAX, DOOR NO. 12-468-4, ADJACENT TO NH-16, SERVICE ROAD, KUNCHANAPALLY, GUNTUR DISTRICT ANDHRA PRADESH - 522501.

3. UNION OF INDIA, THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI - 110001

4. THE STATE OF ANDHRA PRADESH, THROUGH ITS PRINCIPAL SECRETARY, REVENUE (CT) DEPARTMENT, SECRETARIAT, VELAGAPUDI, GUNTUR DISTRICT.

...RESPONDENT(S):

THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO

THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

Date of Judgment pronounced on : 01-04-2026

Advocates:
For the Appellants/Petitioners: K. Vivek Reddy, Vimal Varma Vasi Reddy
For the Respondents: Government Pleader for Commercial Taxes

The assessment and collection of integrated tax on imported goods falls exclusively within the jurisdiction of customs authorities under the customs law. Furthermore, state tax authorities lack the power to initiate proceedings against taxpayers administratively assigned to the central administration based on existing cross-empowerment provisions.

Headnote:(A) Customs Act, 1962 - Section 2(2) and Section 28 - Integrated Goods and Services Tax Act, 2017 - Section 5(1) Proviso - Assessment of tax on imported goods - Levy and collection of integrated tax on imported goods lies exclusively with customs authorities - Assessment definition under Customs Act includes determination of duty, tax, or cess under any other law with reference to customs provisions - State tax authorities lack jurisdiction over integrated tax assessment on imports. (Paras 13, 16, 17, 18)

(B) Goods and Services Tax - Cross-empowerment - Jurisdiction -Administrative allotment to central authority - Officers under state tax laws cannot exercise jurisdiction over taxpayers assigned to central authorities absent clear authorization - Show cause notice based on jurisdictional error warrants judicial intervention. (Paras 21, 22)

(C) Judicial Precedent - Binding effect - Declaration of invalidity of circulars by high courts - Once a circular is struck down by a high court, it becomes inoperative across the country. (Para 23)

Facts of the case:
A corporate entity engaged in importing inputs for manufacturing challenged a show cause notice issued by state tax authorities regarding the taxability and classification of imported goods. The petitioner contended that state authorities lacked jurisdiction as the entity was administratively allotted to a central authority and the assessment of integrated tax on imports was the exclusive domain of customs officials. The respondent authorities argued that they possessed cross-empowerment to initiate such proceedings under state tax statutes.

Findings of Court:
The court concluded that the definition of assessment under the customs law encompasses the determination of all taxes on imported goods. Consequently, state tax officers cannot exercise jurisdiction over integrated tax on imports. Furthermore, the court held that state authorities cannot act against taxpayers administratively assigned to the central jurisdiction. The impugned notice was deemed issued without jurisdiction.

Issues: 1. Whether state tax authorities have the jurisdiction to assess integrated tax on goods imported into the country. 2. Whether officers under state tax legislation can exercise powers over taxpayers assigned to the central administrative jurisdiction.

Ratio Decidendi: The court reasoned that the proviso to Section 5(1) of the integrated tax act, read with the customs law, confers exclusive jurisdiction upon customs authorities to assess and collect tax on imported goods. Regarding cross-empowerment, the court held that such authority is limited to the jurisdiction assigned; hence, state officers cannot initiate proceedings against central-allotted taxpayers. Judicial consistency necessitates that a circular declared invalid by a high court loses its efficacy nationwide.

Result: Writ petition allowed; impugned show cause notice set aside.

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, Direction or Order, particularly in the nature of Writ of Certiorari, a.Call for the records pertaining to the Impugned Notice dated 10 April 2023 bearing Case ID AD371122002279F, issued by Respondent No.1 under Section 73(5) of the AP GST Act and quash the same b.Declare that the Impugned Circular No. 80/54/2018 dated 31 December 2018 issued by the Tax Research Unit, Department of Revenue, under the Respondent No.3, is invalid as it has already been set aside by the Honourable Madras High Court in Jenefa India v. UOI (Judgment dated 5 October 2021 in WP No. (MD) No. 16770 to 16776 of 2019), and cannot be relied upon by the Respondent Nos. 1 and 2 in the Impugned Notice dated 10 April 2023 bearing Case ID AD371122002279F, issued by Respondent No.1 under Section 73(5) of the AP GST Act and to 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 dispense with the requirement of filing the certified copies of 1) Impugned Notice dated 10 April 2023 bearing Case ID AD371122002279F, issued by Respondent No.1 under Section 73(5) of the AP GST Act and 2) Impugned Circular No. 80/54/2018 dated 31 December 2018 issued by the Tax Research Unit, Department of Revenue, under the Respondent No.3, pending disposal of the above writ petition and to pass

IA NO: 2 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 the Impugned Notice dated 10 April 2023 bearing Case ID AD371122002279F, issued by Respondent No.1 under Section 73(5) of the AP GST Act pending disposal of the above writ petition and to pass

IA NO: 3 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 stay all further proceedings pursuant to the impugned Notice dated 10 April 2023 bearing Case ID AD371122002279F, issued by Respondent No.1 pending disposal of the above writ petition and to pas

IA NO: 4 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 the Operation of the Impugned Circular No. 80/54/2018 dated 31 December 2018, issued by the Tax Research Unit, Department of Revenue, under the Respondent No.3 pending disposal of the above writ petition and to pass

IA NO: 5 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 direct Respondent No.1 not to take any coercive steps in relation to the Impugned Notice dated 10 April 2023 bearing Case ID AD371122002279F, issued by Respondent No.1 pending disposal of the above writ petition and to 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 to vacate the interim orders dated 05.05.2023 in WP No. 11760 of 2023 and to 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 to concone the delay of 118 days in filing the rejoinder by permit the petitioners to file their rejoinder to the Vacate stay petition and counter affidavit filed by the respondent no.1 and pass

IA NO: 1 OF 2025

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 permit the Petitioners to file this Additional Affidavit along with material papers numbered as Anne

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2026 Supreme(Online)(AP) 9887

Cases Referred (3)