Facts of the Case

This is a straightforward government-payment dispute, and the reference to GST is limited to the bill amount being GST-inclusive. The petitioner-firm was awarded a work order dated 23 January 2020 by the A.P. Tourism Authority for designing, fabricating and displaying a Tableau for the Republic Day Celebrations held on 26 January 2020. After completing the work, the petitioner submitted a bill of Rs. 8,85,000, including GST, but the amount remained unpaid despite repeated demands, prompting the writ petition seeking a mandamus for payment.

Issues Involved

  1. Whether the respondents' inaction in paying the admitted bill amount of Rs. 8,85,000 (including GST) was illegal and warranted a mandamus.

Petitioner's Arguments

  • The petitioner-firm had completed the Republic Day tableau work as per the work order and submitted its bill for Rs. 8,85,000 (including GST), which the respondents failed to pay despite repeated demands.

Respondent's Arguments

  • The learned Government Pleader for Tourism fairly conceded, on instructions, that the work was entrusted to and completed by the petitioner-firm and that Rs. 8,85,000 was indeed due, but requested four weeks' time to arrange payment.

Court Order / Findings

  • In view of the respondents' unequivocal admission that the amount was due, the Court disposed of the writ petition with a direction to pay Rs. 8,85,000 within four weeks.
  • The Court further directed that, if payment was not made within that period, the respondents would be liable to pay interest at 12% per annum on the due amount until realisation.

Important Clarification

No GST law question was examined or decided — GST simply formed part of the total bill amount for an admitted, completed contract. The order is useful chiefly as an illustration of how promptly courts will enforce payment once a government department concedes the amount is due, including imposing a 12% interest penalty for further delay.

Sections Involved

  • Article 226 of the Constitution of India — writ of mandamus for release of an admitted payment.
  • GST on the contracted advertisement/display service under the Central Goods and Services Tax Act, 2017 was referenced only as a bill component.

Decision – In Favour of

Decided in favour of the petitioner-firm — the writ petition was disposed of with a direction to pay the admitted GST-inclusive bill amount within four weeks, with 12% annual interest for any further delay.

Case Details

Court: High Court of Andhra Pradesh at Amaravati
Case No.: Writ Petition No. 16585 of 2022
Coram: Hon'ble Justice Cheekati Manavendranath Roy
Date of Order: 21 September 2022

Link to Download the Order

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