RK Infracorp Private Limited Vs Assistant Commissioner State Tax (Andhra Pradesh High Court)
The writ petition concerned a registered GST dealer engaged in works contract services whose books of accounts for the years 2021–22 and 2022–23 were audited by the State tax authorities. Pursuant to the audit, a show cause notice was issued proposing levy of a differential tax on infrastructure development works relating to laying of internal roads, on the ground that the petitioner had paid tax at 12% instead of the applicable 18%. Following adjudication, an order dated 14.08.2025 was passed levying tax at 18% under both SGST and CGST, along with interest under Section 50 of the GST Act and penalties at 10%.
The petitioner contended that the contractee had paid tax only at 12% and refused to reimburse the differential 6%, asserting that the applicable rate was 12%. Initially, the petitioner sought a direction against the contractee to pay the differential tax, interest, and penalty. Subsequently, the petitioner amended the prayer to challenge the adjudication order itself, seeking reassessment on the basis that the works were infrastructure/public road works taxable at 12%. In support, certificates dated 11.12.2025 issued by the Executive Officer of the Industrial Area Local Authority were produced, certifying that the roads were laid to facilitate industrial activity and general public movement and were treated and maintained as public roads.
