Andhra Pradesh High Court - Amravati
Nagarjuna Fertilizers And Chemicals ... vs The State Of Ap on 25 June, 2025
Author: R Raghunandan Rao
Bench: R Raghunandan Rao
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lN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVA
WEDNESDAY, THE TWENTY FIFTH DAY OF JUNE +..
TWO THOUSAND AND TWENTY FIVE ,JJ
:PRESENT:
HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
AND n`-rty ~{.`_
HONOURABLE SMT JUSTICE SUMATHI JAGADAM
WRIT PETITION NO: 14945 OF 2025
Between :
1. NAGARJUNA FERTILIZERS & CHEMICALS LIMITED, Having
registered office at plot No.44, Eco House, Nagarjuna Hills, Punjagutta,
Hyderabad -500082 Through its authorised signatory, Mr. Neela Pratap
S/o. Mr. N.Padma Rao, Aged about 50 years.
PETITIONER NO.1
2. SHRI KANUMURU RAHUL RAJU, S/o. Shri K.S. Raju Managing
Director of Petitioner No. 1 Having registered office at. Door No. 8-2+
248, Punjagutta, Hyderabad -500082
PETITIONER NO.2
AND
1. STATE OF ANDHRA PRADESH, Represented. by Principal Secretary,
Finance Department, Andhra Pradesh Secretariat, Amaravati, Andhra '
Pradesh.
2. STATE OF ANDHRA PRADESH, Represented by Assistant
commissioner of commercial Taxes, Door No.12-468-4, Adjacent To :
NH-16, Service Road, Kunchanapally, Guntur District, Andhra Pradesh
3. `CHIEF COMMISSIONER OF SALE TAX, Door No.12-468-4, Adjacent
To NH-16, Service Road, Kunchanapally, Guntur District, Andhra
Pradesh.
4. COMMISSIONER OF INDUSTRIES, Commissionerate of Industries,
8{h FIoor, APIIC Towers, Mangalagiri, Guntur.
5. COMMISSIONER OF COMMERCIAL TAXES, Door No.12-468-4,
Adjacent To NH-16, Service Road, Kunchanapally, Guntur District,
Andhra Pradesh.
6. OFFICE OF THE ASSISTANT COMMISSIONER (CT) LTU, Kakinada
Division, D. No.10-355,2nd Floor, Commercial Taxes Complex,
Pithapuram Road, Kakinada, Andhra Pradesh.
7. ASSISTANT COMMISSIONER (CT) LTU, Kakinada Division, D. No.10-
355, 2nd FIoor, Commercial Taxes Complex, Pithapuram Road,
Kakinada, Andhra Pradesh.
8. OFFICE OF THE ASSISTANT COMMISSIONER (State Tax), Kakinada
Port Circle, D. No.10-355, 2nd Floor, Commercial Taxes Complex,
Pithapuram Road, Kakinada, Andhra Pradesh.
9. DY. COMMERCIAL TAX OFFICER-ll, Kakinada Port Circle, Kakinada
Division, D. No.10-355, 2nd Floor, Commercial Taxes Complex,
pithapuram Road, Kakinada, Andhra Pradesh
Respondent/s
Petition under Article 226 of the Constitution of India is filed ppraying
that in the circumstances stated in the affidavit filed therewith, the High Court
may be pleased to:
A. Issue a writ, order or a direction i'n the nature of mandamus to set aside
the Impugned Notice bearing DIN No.3703052596462 dated
03.05.2025 issued by the Respondent No.6 to 9 to the Petitioners and
any consequential actions arising there from;
B. Direct the Respondent No.6 to 9 to withdraw the advisory notes
datedB. 30.05.2025, 26.05.2025 and 29.04.2025 issued to SEBl,
bankers and dealers of the Petitioner No. 1.
IANO: 1 OF2025
Petition under Section 15`1 CPC is filed praying that in the
Circumstances stated in the grounds fl'Ied in support of the petition, the
High Court may be pleased to stay the operation of the Impugned Notice
bearing DIN No.3703052596462 dated 03.05.2025 Pending disposal of WP
14945 of 2025, on the file of the High Court.
is IANO: 2 OF2025
Petition under section 151 CPC is filed praying that in the
circumstances stated in the grounds filed in support of the petition, the
High Court may be pleased to Stay the operation of the Letter Dated
26.05.2025 issued to the Banker of the Petitioner No. 1 by the Respondents
No. 6 to 9 authorities, pending disposal of wp 14945 of 2025, on the file of
the High Court.
q` IANO:
3 OF2025
Petition under section 151 CPC is fl'Ied praying that in the
circumstances stated in the grounds fl'led in support of the petition, the
High Court may be pleased to Direct the Respondent Nos. 6 & 9, to produce
a copy of the advisory note dated 29.04.2025 issued to SEBI seeking
restrictions on the sale of shares by major promoters of the petitl'oner
company, Pending disposal of wp 14945 of 2025, on the file of the High
Court.
` The petition coming on for hearing, upon perusing the petition and the
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affidavit filed in support thereof and upon hearing the arguments of SRI
RAMALAKSHMANA REDDY SANEPALLl, Advocate for the Petitioners,
learned GP FOR FINANCE for the Respondent No.1, learned GP FOR
INDUSTRIES AND COMMERCE for the Respondent No.4, learned GP FOR
COMMERCIAL TAX for the Respondent No. 2,3, 5 to 9, the Court made the
foIIowI'ng
ORDER:
ff The petitioner had entered into a Deferment Agreement with the Government of Andhra Pradesh, dated 15.ll.2006, wherein the petitioner was unable to utilize the Sales Tax collected by the petitioner and repay the same in jnstallments| The petitioner had paid all the installments except the last installment, which was due as of 31.03.2025. On 13.12.2024, the respondents had issued a notice to the petitioner, calling upon him to remit the entire ins1:aIIment of Rs.13,43,48,913/I, which was due as on - 31.03.2025. This demand was made, on the ground that, certain assets of the petitioner had been sold and such sale would,be violative of the terms of the Deferment Agreement.
The petitionerl had approached this court, by way of w.p.No.27056 of 2024, challenging the show-cause notice issued in this regard. This Writ Petition was disposed of, giving liberty to the petitioner to set out the grounds before the Respondent Authorities. Subsequently, an order of recovery was issued and challenged before this court, by way of W.P,No.30409 of 2024, This Court, had passed an interim direction, Staying recovery of 1:he said amounts. These interim d]-rections were extended from 1:ime to time till 18.06.2025.
The petitioner has approached this court, by way of the present Writ Petition, on the ground that, the petitioner is ready and willing to Pay the entire amount due. However, the petitioner requested for an accommodation of permittI-ng transfer Of the input tax Credit available to the petitioner with various states to be transferred to the input tax credit ledger by the petitI-Oner maintained with the Government of Andhra Pradesh ancl for utilization of such I-nPut tax Credit aS repayment Of the amollntS duel, The petitioner, pending disposal of the Writ Petition, has also sought raising of attachment of Rs.10,00,00,000/-available in the bank account of the petitioner in I.D.B.I Bank, which has now been attached
- by the respondents.
Sri P. Gireesh Kumar, the learned Senior Counsel appearing on behalf of Sri Ramalakshmana Reddy Sanepalli, learned counsel for the Petitioner would contend that, the petitioner has every intention of repaying the final installment and has already paid Rs.5.69 crores ancl would be able to remit the remaining amount, by adjustment of a credit ledger given some 1:jme.
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The learned senior counsel would submit that the petitioner is unable to pay salarI-eS tO its employees and also to clear retained dues On account Of the attachment of the bank account.
The learned Government pleader opposed the said contentI-On, On the ground that, the state is entitled to recover its money and attachment of the bank account, cannot be raised.
ln view of the fact that the petitI-Oner iS Willing to pay the entire amount due and by utilI-ZatiOn Of its input tax Credit, it would suffice to protect the interest of both sides by directing that the petitioner may be Permitted to operate the bank accounts maintained by the petitioner in I.D.B.I Bank & s.B.I. Bank, subject to the condI-lion Of the Petitioner maintaining a balance of Rs.7.74 crores at any point of time, It is understood that the interim order will operate for a period of two (o2) weeks within whI-Ch the petitioner is expected to pay out the said amount of Rs.7.74 crores.
post on o9.07.2025." sD/-B.CHITTI JOSEP=iI
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ASSIST
lSTRAR
//TRUE COPY// SECTII
irmHdifi EEEl CER
i-`. For
To,
1. The Principal Secretary, state ofAndhra Pradesh, Finance Department, Andhra pradesh secretariat, Amaravati, Andhra Pradesh. (BY SPECIAL MESSENGER)-
2. The AssI-Slant Commissioner of commercial Taxes, Door No.12-468-4, AdJ-aCent To NH-16, Service Road, KunchanapaIIy, Gun{ur DistrI'Ct, Andhra Pradesh
3. CHIEF COMMISSIONER OF SALE TAX, Door No.12-468-4, Adjacent To NH-16, Service Road, KunchanapaIIy, Guntur District, Andhra Pradesh.
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4. COMMISSIONER OF INDUSTRIES, CommI'SSiOnerate Of Industries, 8th Floor, APIIC Towers, Mangalagiri, Guntur.
5. COMMISSIONER OF COMMERCIAL TAXES, Door No.12-468-4, Adjacent To NH-16, Service Road, Kunchanapally, Guntur District, Andhra Pradesh.
6. OFFICE OF THE ASSISTANT COMMISSIONER (CT) LTU, Kakinada Division, D. No.10-355,2nd Floor, Commercial Taxes Complex, Pithapuram Road, Kakinada, Andhra Pradesh.
7. ASSISTANT COMMISSIONER (CT) LTU, Kakinada Division, D. No.10- 355, 2nd Floor, Commercial Taxes Complex, Pithapuram Road, Kakinada, Andhra Pradesh.
8. OFFICE OF THE ASSISTANT COMMISSIONER (State Tax), Kakinada Port Circle, D. No.10-355, 2nd Floor, Commercial Taxes Complex, Pithapuram Road, Kakinada, Andhra Pradesh.
9. DY. COMMERCIAL TAX OFFICER-ll, Kakinada Port Circle, Kakinada Division, D. No.10-355, 2nd FIoor, Commercial Taxes Complex, Pithapuram Road, KakI'nada, Andhra Pradesh (Addressee Nos.2 to 8 by SPEED POST)-
10. One CC to SRI. RAMALAKSHMANA REDDY SANEPALLI Advocate [OPUC] ll. Two CCs to GP FOR FINANCE PLANNING ,High Court Of Andhra Pradesh. [OUT]
12.Two cos to GP FOR COMMERCIAL TAX, High Court of Andhra Pradesh.
[OUT]
13.Two CCs to GP FOR INDUSTRIES AND COMMERCE ,High Court ofAndhra Pradesh. [OUT]
14. Two spare copies Kj * HIGH COURT RRR,J & JS,J DATED :25/06/2025 POST ON 09.07.2025 ORDER WP.No.14945 of 2025 DIRECTION