IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE NINETEENTH DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SRI JUSTICE GHULAM MOHAMMED & THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY WRIT PETITION NO : 25375 of 2008 Between: V.Venkateswara Rao S/o.Gangadhara Rao Shop No.21, IGMS Complex, Labbipet, Vijayawada - 520 010. ..... 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 Chief Engineer, (R&B) Hudco, Erramanzil, Hyderabad. 4 The Superintendent Engineer (R&B) Circle, Vijayawada, Krishna District. 5 The Executive Engineer (R&B) Vijayawada, Krishna District. 6 The Executive Engineer (R&B) Machilipatnam, Krishna District. 7 The Pay and Accounts Officer (W&P), Vijayawada, Krishna District. 8 The Commercial Tax Officer, Krishnalanka, Vijayawada. .....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/ F8(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 under Agreement No's 26/2008-09 dt. 13-06-08, 102 to 104/2008-09 dt. 12-11-2007 and 154/2007-08 dt. 15-02-2008, 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 7 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 2 to 7 to pay the difference 2.6% amount on the total value of the work executed by the petitioner under Agreement No's 26/2008-09 dt. 13-06-08, 102 to 104/2008-09 dt. 12-11-2007 and 154/2007-08 dt. 15-02-2008, to the petitioner and (5) to pass such other order or orders as the Hon'ble Court may deem fit and proper in the circumstances of the case as otherwise the petitioner will be put to irreparable loss and hardship. Counsel for the Petitioner: SRI P.GIRISH KUMAR Counsel for the Respondents: GP FOR FINANCE & PLANNING The Court made the following : THE HON'BLE SRI JUSTICE GHULAM MOHAMMED & THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY WRIT PETITION NO : 25375 of 2008 ORDER: (per Hon’ble Sri Justice Ghulam Mohammed) Heard both the sides. At their request, the Writ Petition itself is taken up for disposal at the admission stage. At the time of hearing, it is submitted by the learned counsel on either side 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, the Special Government Pleader for Commercial Tax submitted that though the petitioner states that he 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 Nos.2 to 7 not to remit any further amount to the 8th respondent in respect of deductions already made pursuant to the Memo dated 14.3.2007 of the first respondent, while processing the final bill, however, subject to the payment of 4% which is stated to have been made by the petitioner. The respondents Nos.2 to 7 are directed to pay the balance 2.6% to the petitioner. No costs. _________________________ Justice Ghulam Mohammed _______________________________ Justice B. Seshasayana Reddy Dated: 19.11.2008 Note: Issue CC in three days. (BO) Nn. THE HON'BLE SRI JUSTICE GHULAM MOHAMMED & THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY WRIT PETITION NO : 25375 of 2008 (Order delivered by the Hon’ble Sri Justice Ghulam Mohammed) 19.11.2008