Andhra Pradesh High Court
GST Proceedings Cannot Be Initiated Against Deceased Proprietor: Andhra Pradesh High Court Reiterates
The Andhra Pradesh High Court has recently reiterated that GST authorities cannot initiate assessment or adjudication proceedings in the name of a deceased proprietor, even where the tax demand relates to a period when the business was active. A Division Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar clarified that Section 93 of the Central Goods and Services Tax Act, a provision that allows recovery of tax payable by deceased persons, does not authorise the initiation of fresh...
Andhra Pradesh High Court Holds Solar Power EPC Contract Eligible for 8.9% GST, Quashes 18% Demand
The Andhra Pradesh High Court has recently ruled that contracts for setting up solar power generating systems cannot be taxed at 18% GST merely because they involve erection and commissioning work. Holding that such contracts are covered by a concessional GST notification, the court said tax must be levied at an effective rate of 8.9% and set aside a higher assessment raised by GST authorities. A division bench of Justices R. Raghunandan Rao and T.C.D. Sekhar said the benefit of the...
Commercial Courts Cannot Hear Non-Commercial Arbitration Disputes Without Specified Claim Value: MP High Court
The Madhya Pradesh High Court has clarified that arbitration challenges arising from non-commercial disputes with no determinable monetary value cannot be heard by Commercial Courts, even if such courts function at the level of a Civil Judge (Senior Division). The court clarified that the Commercial Courts Act, 2015 applies only when two conditions are met, the dispute must be commercial in nature and must have a specified value as defined under the law. Justice Vivek Jain said that where...
Court Cannot Use Attachment In Arbitration To Turn Unsecured Damages Claim Into Secured Debt: AP High Court
The Andhra Pradesh High Court has said that a claim for demurrage, which is essentially a charge demanded for delay in loading or unloading a ship, cannot be treated as an actual money debt until an arbitral tribunal finally decides who is at fault. Because of this, the court held that such a claim cannot be secured by attaching goods under Section 9 of the Arbitration Act while arbitration is still pending. A division bench of Justice Ravi Nath Tilhari and Justice Maheswara Rao Kuncheam, in...
AP VAT Act | Tax Dept Must Specify Negligence Before Recovering Company Dues From Directors: Andhra Pradesh High Court
The Andhra Pradesh High Court at Amaravati has held that tax authorities cannot recover unpaid taxes under the Andhra Pradesh Value Added Tax Act, 2005, from directors of the company unless they first clearly spell out the negligence or breach of duty alleged against them. A Division Bench of Justice R Raghunandan Rao and Justice T. C. D. Sekhar clarified the scope of Section 24(5) of the Andhra Pradesh Value Added Tax Act, 2005. The court said that while the provision does allow directors of...
AP High Court Restores Arbitral Awards In Hindustan Shipyard Case; Says Arbitrators Can Modulate 'Exorbitant' Liquidated Damages
The High Court of Andhra Pradesh recently set aside a Trial Court's order that had earlier quashed thirteen arbitral awards against Hindustan Shipyard Limited (HSL) and its subcontractors. On 31st December 2025, the Division Bench comprising of Justices R. Raghunandan Rao and T.C.D. Sekhar, upholding the arbitral awards, stated that an arbitrator has the jurisdiction to modulate liquidated damages if they are found to be exorbitant or if the delay is attributable to both parties, and noted that...
Income Tax | Delay in Filing Form 10-B Due To COVID Cannot Deny S.11 Exemption: Andhra Pradesh High Court
The Andhra Pradesh High Court held that the exemption under Section 11 of the Income Tax Act cannot be denied merely on account of delay in filing the Form 10-B Audit Report when such delay was caused by the COVID-19 Pandemic. Justices Battu Devanand and A. Hari Haranadha Sarma observed that the assessee is a religious and charitable society and has to comply with the instructions issued by the Income Tax Department through their letter. Due to the Covid-19 Pandemic, the assessee could...
Notification Defining Jurisdiction Does Not Automatically Empower All Officers To Invoke S. 122 CGST Act: AP High Court
The Andhra Pradesh High Court held that a notification merely defining or fixing the territorial jurisdiction of officers cannot be construed as conferring the power to initiate penalty proceedings under Section 122 of the CGST Act. Section 122 of the Central Goods and Services Tax (CGST) Act, 2017 is the primary provision defining various GST-related offences and the specific monetary penalties applicable to them. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether...
APVAT | Value Added Tax Not Leviable On Offshore Sales Beyond Territorial Waters: Andhra Pradesh High Court
The Andhra Pradesh High Court held that Value Added Tax (VAT) under the Andhra Pradesh Value Added Tax Act (AP VAT) cannot be levied on sales beyond 12 nautical miles, as such transactions fall outside the State's territorial jurisdiction. Justices R. Raghunandan Rao and T.C.D. Sekhar stated that neither the State Legislature nor the Central Legislature would have the power to levy tax on the sale of goods made beyond the territorial waters of India. In the case at hand, the...
GST Not Leviable On Interest/Penalty Charged By Chit Fund Companies For Delayed Payment Of Monthly Subscriptions: AP High Court
The Andhra Pradesh High Court held that interest and penalty collected by chit fund companies from defaulting subscribers for delayed payment of instalments are not taxable under GST. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether the interest/penalty collected for the delay in payment of the monthly subscription by the members forms a supply under GST. In the case at hand, the petitioner was a chit fund company engaged in the business of running chit schemes. The...
GST Not Leviable On Interest/Penalty Charged By Chit Fund Companies For Delayed Payment Of Monthly Subscriptions: AP High Court
The Andhra Pradesh High Court held that interest and penalty collected by chit fund companies from defaulting subscribers for delayed payment of instalments are not taxable under GST. Justices R. Raghunandan Rao and T.C.D. Sekhar examined whether the interest/penalty collected for the delay in payment of the monthly subscription by the members forms a supply under GST. In the case at hand, the petitioner was a chit fund company engaged in the business of running chit schemes. The...