IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY NINETH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO and THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION NO : 9711 of 2008 Between: M/s Bhagam Constructions Pvt. Ltd., Special Class Contrctors, H.No.54-14/1-9/5, Bharathi Nagar, Vijayawada-520008, Krishna District, Rep by its Director B.Trivikram ..... PETITIONER AND 1 The Government of Andhra pradesh, Rep by its Principal Secretary, Finance (W & P) Dept., Secretariat Buildings, Hyderabad. 2 The Superintendent Engineer(R & B) Circle, vijyawada, Krishna District. 3 The Executive Engineer(R & B) Machilipatnam, Krishna District. 4 The Pay and Accounts Officer,(W & P), vijyawada, Krishna District. 5 The Commercial Tax Officer, Auto Nagar, 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 the (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.Nos. 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 in terms of the provisions of the G.O.Ms.No.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 4 in adding only 1.4% 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 4 to pay the difference 2.6% amount on the total value of the work relating to the Agreement No.129, dated 14.12.2007 to the petitioner. Counsel for the Petitioner:MR.P.GIRISH KUMAR Counsel for the Respondent No.: GP FOR FINANCE & PLANNING The Court made the following : ORDER: (Per BPR, J) Heard both sides and at their request, the writ petition is taken up for disposal at the stage of admission. 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 passed in W.P.No.484 of 2008 dated 18.01.2008. However, the learned Special Standing Counsel for Commercial Taxes 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 respondent Nos. 2 to 4 not to remit any further amount to the 5th respondent in respect of deductions already made pursuant to the memo, dated 14.03.2007, 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 the respondents 2 to 4 in the final bill. No costs. _________________ B.PRAKASH RAO, J __________________ C.Y.SOMAYAJULU, J Dated: 29.04.2008. Note: Issue CC in four days. (Bo) sj ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Principal Secretary, Government of Andhra Pradesh. rep by its Finance (W & P) Dept., Secretariat Buildings, Hyderabad. 2 The Superintendent Engineer(R & B) Circle, vijayawada, Krishna District. 3 The Executive Engineer(R & B) Machilipatnam, Krishna District. 4 The Pay and Accounts Officer,(W & P), Vijyawada, Krishna District. 5 The Commercial Tax Officer, Auto Nagar, Vijayawada, Krishna District. 6. 2CD copies. Form-NIC-OGS/WP{LS}