Sri Bharath Constructions VS Assistant Commissioner of State Taxes

In this writ petition, the petitioner is seeking a Writ of Mandamus, which is a legal remedy that commands a governmental agency or official to perform a duty that it is legally required to perform. The petitioner is challenging Notification No.4/2018-Central Tax (Rate) dated 25.01.2018 on the grounds that it contravenes Section 148 of the CGST Act/ APGST Act. Additionally, the petitioner is requesting the court to set aside the impugned order AAO No.ZH370722od11999 Dated 25.07.2022, which confirms demands made under various sections of the CGST/ APGST Act.

The demands include:

1. CGST demand of Rs. 73,41,307/-
2. SGST demand of Rs. 73,41,307/-
3. IGST demand of Rs. 1,71,959/-
4. Penalty of Rs. 1,48,54,573/- under Section 74/73(9)
5. Interest of Rs. 1,19,10,247/- under Section 50

The petitioner contends that these demands are illegal, arbitrary, and violate the principles of natural justice. The term “illegal” suggests that the demands are not in accordance with the law, while “arbitrary” implies that they lack justification or rationale. Moreover, alleging a violation of the principles of natural justice indicates that the petitioner believes they were not given a fair opportunity to present their case or defend themselves.

The petition seeks relief by asking the court to declare the aforementioned notification as ultra vires (beyond the legal power or authority) to the relevant sections of the CGST Act/ APGST Act and to set aside the impugned order, thereby nullifying the demands made by the authorities. This indicates a desire for the court to intervene and rectify what the petitioner perceives as injustices or illegal actions by the tax authorities.

In this writ petition, the petitioner is seeking a Writ of Mandamus to declare Notification No.4/2018-Central Tax (Rate) dated 25.01.2018 as ultra vires to Section 148 of the CGST Act/ APGST Act. Additionally, they are requesting to set aside the impugned order AAO No.ZH370722od11999 Dated 25.07.2022, which confirms the demands of CGST/ APGST, Interest, and Penalty as follows: CGST of Rs.73,41,307/-, SGST of Rs.73,41,307/- under Section 74; IGST demand of Rs.1,71,959/-, Penalty of Rs.1,48,54,573/- under Section 74/73(9); Interest of Rs.1,19,10,247/- under Section 50. The petitioner alleges that these demands are illegal, arbitrary, and violate the principles of natural justice.

During the proceedings, Sri Anup Koushik Karavadi, learned counsel representing Sri Karan Talwar, learned counsel for the petitioner, and Sri Y.N.Vivekananda, learned Government Pleader for Commercial Tax were heard. The court took into account the nature of the prayer made during the course of the hearing.

In this writ petition, the petitioner is seeking legal recourse through a Writ of Mandamus to challenge the validity of Notification No.4/2018-Central Tax (Rate) dated 25.01.2018, contending it to be ultra vires to Section 148 of the CGST Act/ APGST Act. Additionally, they aim to overturn the impugned order AAO No.ZH370722od11999 dated 25.07.2022, which confirms various tax demands along with interest and penalty. These demands include CGST and SGST amountsing to Rs.73,41,307 each under Section 74, IGST demand of Rs.1,71,959, penalty of Rs.1,48,54,573 under Section 74/73(9), and interest of Rs.1,19,10,247 under Section 50. The petitioner asserts that these demands are unjust, arbitrary, and contravene the principles of natural justice.

During the legal proceedings, arguments were presented by Sri Anup Koushik Karavadi, representing the petitioner, and Sri Y.N.Vivekananda, the Government Pleader for Commercial Tax. The court carefully considered the nature of the petitioner’s plea and the arguments put forth during the hearing.

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