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.27645 of 2008 Between: M/s. Bhagam Constructions Pvt. Ltd. Special Class Contractors, H.No. 54-14/1-9/5, Bharathi Nagar, Vijayawada-520 008, Krishna District. Rep by its Director B. Trivikram ..... PETITIONER AND 1 The Government of Andhra Pradesh, Rep by its Principal Secretary, Finance (works & projects) Admn. & N.H. Erramanzil, Hyderabad. 2 Engineer-in-Chief (R & B), Admn. & N.H. Erramanzil, Hyderabad. 3 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), Guntur, 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 Commercial Tax Officer, Auto Nagar, Vijayawada, Krishna District. .....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 may 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, contray to the provisions of the AP. Value added Tax Act, Rules made there under, GO Ms.No.'s 11 dt. 29-7-2005 and 141 dt. 27-7-2006 and unsustainable 2) the petitioner is entitled for addition of VAT component of 4 % on the entire value of work done in terms of the provisions of the GO MS 11 dt. 29-7-2005, 141, dt. 27-7-2006 and Section 22 (2) of thje AP VAT Act, 3) Declaring the action of the respondents 2 to 9 to 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 AP Value Added Tax and the Government orders in force and 4) consequently direct the respondents 2 to 9 to add/pay the difference 2.6% amount on the total value of the work relating to the Agreement Nos. 73, dt. 05-11-2008 and 29-11-2008, to the petitioner and 5) and to pass 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.27645 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, the 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 9 not to remit any further amount to the 10th 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 9 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{RLD}