IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE THIRTY FIRST DAY OF JULY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 16636 of 2008 Between: M/s. Maruti Constructions, special Class Contractors, H. No. 54-14/1-9/5, Bharathi nagar, Vijayawada-520 008, Krishna District rep byits Managing Partner, D. Nageswara Prasad, ..... PETITIONER AND 1 The Government of Andhra Pradesh rep by its Principal Secretary, Finance (Works & Projects) Department, Secretariat Buildings, Hyderabad. 2 Engineer-in-Chief, (R&B) Roads, Erramanzil, Hyderabad. 3 The Chief Engineer (R&B) HUDCO. Erramanzil, Hyderabad. 4 The Superintendent Engineer (R&B) Circle, Vijayawada, Krishna District. 5 The Superintendent Engineer (R&B) Circle, Guntur guntur District. 6 The Executive Engineer (R&B) Vijayawada, Krishna District. 7 The Executive Engineer (R&B) Tenali, Guntur district. 8 The pay and Accounts Officer, (W&P) Vijayawada, Krishna District. 9 The pay and Accounts Officer, (W&P) Guntur, Guntur District. 10 The Assistant Commissioner (CT) LTU. Division No.II, Vijayawada, krishna District. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Aﬃdavit ﬁled herein the High Court will be pleased to issue an appropriate Writ, order or direction more particularly one in the nature of Writ of mandamus declaring that (1) the memo No. 602/E8(1)/2006, dated 14-3-2007 issued by the 1st respondent is arbitrary, illegal, invalid, contrary to the provisions of the A.P. Value added Tax Act Rules made there under, G.O.Ms. No's 11 dt 29-07-2005 and 141 dt 27-07-2006, and unsustainable. (2) the petitioner is entitled for addition of VAT component of 4% on the entire value of work done at the time of payment of each bill in terms of the provisions of the G.O.Ms. 11 dt 29-07-2005, 141, dt/27-07-2006 and section 22(3) of the A.P. VAT Act, (3) Declaring the action of the respondents 2 to 9 in adding only 1.4% at the time of payment of each bill i.e, lesser than 4 % as arbitrary illegal and contrary to the provisions of the A.P. Value Added Tax and the Government orders in force as well as the terms of the agreement and (4) Consequently direct the respondents to pay the diﬀerence 2.6% amount on the total value of the work relating to the agreement Nos. 147, 131 and 147/2007-08 to the petitioner; and (5) to pass such other order or orders. Counsel for the Petitioner:MR.P.GIRISH KUMAR Counsel for the Respondents: SRI K. RAJI REDDY, SPL. GP FOR COMMERCIAL TAX, GP FOR FINANCE & PLANNING & GP FOR ROADS & BUILDINGS. The Court made the following : THE HON'BLE MRS JUSTICE T.MEENA KUMARI & THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 16636 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) Heard both sides. At their request, the Writ Petition itself is taken up for disposal at the stage of admission. At the time of hearing, the learned Counsel on either side submitted that the issue raised in this writ petition is squarely covered by the Judgment of the Division Bench of this Court in W.P.No.484 of 2008, dated 18.1.2008. However, learned Special Government Pleader for Commercial Tax submitted that though the petitioner states that it has paid 4% tax on the entire work done, it has to be ascertained while processing the final bill. Following the ratio laid down in the above referred judgment, the Writ Petition is, accordingly, allowed with a direction to respondents No.2 to 9 not to remit any further amount to the 10th respondent in respect of deductions already made pursuant to the memo, dated 14.3.2007 of the 1st respondent, while processing the ﬁnal bill, however, subject to the payment of 4% which is stated to have been made by the petitioner. It is needless to mention that, as agreed by the counsel on either side, the balance of 2.6% has to be added by respondents No.2 to 9 in the bills. ________________________ Justice T. Meena Kumari ___________________________ Justice Ramesh Ranganathan Date: 31st July, 2008 Note: Issue C.C. in three days. (BO) Nn/gurc. THE HON'BLE MRS JUSTICE T.MEENA KUMARI & THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION No:16636 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 31/07/2008