IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE EIGHTEENTH DAY OF DECEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH and THE HON'BLE MR JUSTICE K.C. BHANU WRIT PETITION No.27573 of 2008 Between: M/s. K.S.R. Projects (India) Private Limited and M/s. K. Venkateswarlu & Co. Formerly known as K. Sudershan Reddy & M/s. K. Venkateswarlu & Co., H.No.5-10-71/12, Flat No.401, Dr. D.T. Bushanam Residency, Kishanpura, Hanumakonda, Warangal-506001, rep. by its Managing Partner K. Srinivas Prasad, S/o. K. Venkatswarlu ..... PETITIONER AND 1 The Government of Andhra Pradesh, rep. By its Principal Secretary, Finance (Works & Projects) Department, Secretariat Buildings, Hyderabad. 2 The Chief Engineer, Godavari Lift Irrigation Scheme, K.C. Camp, Chinthagattu, Hanumakonda, Warangal-506015. 3 The Superintendent Engineer (I & CADD) J. Chokka Rao G.L.I. Project Circle, K.C. Colony, Chinthagattu, Hanumakonda, Warangal-506015. 4 The Executive Engineer J.C.R.-D.L.I.S. Division-I, K.C. Colony, Chinthagattu, Hanumakonda, Warangal-506015. 5 The Assistant Pay and Accounts Officer, Sreeram Sagar Project, K.C. Colony, Hanumakonda. 6 The Commercial Tax Officer, Ramannapet Circle, Warangal. .....RESPONDENT(S) 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 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 14.03.2007 issued by the 1st Respondent and the consequential proceedings dated 02.05.2008 of the 2nd respondent as arbitrary, illegal, invalid, contrary to the provisions of the A.P. Value Added Tax Act, Rules made there under, G.O.Ms.No.11, dt. 29.07.2005, and unsustainable. (2) The Petitioners is entitled for addition / reimbursement of differential VAT Component of 1.2% on the entire value of work done in terms of the provisions of the G.O.Ms.No.11 dated 29-07- 2005, read with Clause 105.4 of the Agreement; 3) Declaring the action of the respondents 2 to 5 in recovering the differential amount @ 1.2% already paid as arbitrary, illegal, unjust and contrary to the provisions of the A.P.Value Added Tax, the Government Orders in force as well as the terms of the agreement and 4) Consequently direct the respondents No.2 to 5 to pay the difference 1.2% of the amount on the total value of the work relating to the Agreement bond No.3/2004-2005, dt: 16.03.2005 and 5) to pass such other order or orders Counsel for the Petitioner:MR.P.GIRISH KUMAR Counsel for the Respondent No.: GP FOR FINANCE & PLANNING The Court made the following : THE HON'BLE MR JUSTICE V.ESWARAIAH and THE HON'BLE MR JUSTICE K.C. BHANU WRIT PETITION No.27573 of 2008 ORDER: (per the Hon’ble Sri Justice V.Eswaraiah) 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, learned counsel on either side submitted that the issue raised in this writ petition is squarely covered by the Judgment of a Division Bench of this Court in W.P.No.484 of 2008, dated 18.01.2008. However, learned Government Pleader for Commercial Taxes 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 respondent Nos.2 to 5 not to remit any further amount to the 6th respondent in respect of deductions already made pursuant to the Memo, dated 14.03.2007 of the first respondent, while processing the final bill, however, subject to 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 respondent Nos.2 to 5 in the bills. No costs. __________________ (V.ESWARAIAH, J) ________________ Dated: 18-12-2008 (K.C.BHANU, J) Note: Issue C.C. in three days (B/o) Prv ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{MSN}