Facts of the Case

P Srihari Raju had executed works valued at Rs. 29,76,898 and Rs. 23,97,270 (Agreement Bond Nos. MD/LS/DEE-IV/179/2020-21 and 178/2020-21, both dated 29.12.2020) for the Andhra Pradesh State Police Housing Corporation Limited (APSPHCL), totaling Rs. 53,74,168, but the bill amount, along with 12% GST and interest, remained unpaid. He filed a writ petition before the Andhra Pradesh High Court seeking a declaration that the non-payment was illegal, arbitrary and violative of Articles 14, 19(1)(g) and 21 of the Constitution, along with a direction for release of the bill amount with GST and interest.

Issues Involved

  1. Whether the respondents should be directed to release the admitted bill amount, including the GST component, to the petitioner.

Petitioner's Arguments

  • The bill amount of Rs. 53,74,168 for completed works, along with 12% GST and interest, remained unpaid despite completion of the work, and this non-payment was illegal and arbitrary.

Respondent's Arguments

  • Counsel for the State and for APSPHCL collectively submitted that the bill amount had been admitted and would be paid in due course, and requested that the matter be disposed of on the same terms as an earlier, similar case (W.P. No. 17411 of 2022), where six weeks had been granted for payment.

Court Order / Findings

  • Justice Ravi Cheemalapati, with the petitioner's counsel raising no objection to following the earlier precedent, disposed of the writ petition in terms of the order in W.P. No. 17411 of 2022.
  • The respondents were directed to release the admitted/legally entitled amount to the petitioner within six weeks.
  • On the separate claim for interest, the petitioner was left at liberty to approach the appropriate forum; no costs were awarded.

Important Clarification

The Court did not adjudicate any dispute about GST rates or computation — the 12% GST was simply part of the admitted contract bill amount that the government corporation had already accepted as payable but delayed releasing. The order is a payment-enforcement direction for an admitted government dues claim, not a ruling on any contested GST issue.

Sections Involved

  • Central Goods and Services Tax Act, 2017 — GST at 12% referenced as part of the admitted works contract bill.
  • Article 226 of the Constitution of India.

Decision – In Favour of

In favour of the Petitioner on release of the admitted amount — the respondents were directed to pay the admitted bill (inclusive of GST) within six weeks; the separate interest claim was left to be pursued elsewhere, with no decision on any contested GST question.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 7475 of 2023
Coram: Justice Ravi Cheemalapati
Date of Order: 02.05.2023

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