GALI BHANU PRAKASH Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) In this Writ Petition filed under Article 226 of the Constitution of India, the petitioner seeks the following relief:

(2.) The petitioner's grievance is that he is the owner of the Godown Nos.03, 07, 08 and 09 having total capacity of 35000 Mts situated at M/s Jagadish and Others Warehouses, Bhanuprakash Nagar, Sitarampet Village, Yerpedu Mandal, Chittoor District. The said godown were used to provide services of storage and warehousing to clients such as Andhra Pradesh State Civil Supplies Corporation Ltd (APSCSCL). The petitioner received monitory consideration as per the agreement for the period between 2017 and 2021 a sum of Rs.5.83,98,000. Later the Regional Vigilance and Enforcement Officer inspected his warehouse and thereafter a show cause notice was issued to the petitioner on 4/2/2022 stating that the services provided by the petitioner amounts to renting of immovable property and therefore the same is not exempted from tax. The petitioner filed objections contending that the services of storage and warehousing of food grains is exempted from levy of tax as per Notification No.12/2017 - Central Tax (Rate), dtd. 28/6/2017. The activity undertaken by the petitioner is that it had entered into an agreement with APSCSCL for providing storage, warehousing services involving loading, unloading, stacking, packing, care, custody and security etc., of food grains and the activity of storage or warehousing of rice is specifically covered under entries prescribed in Sl.No.24 and also under Sl.No.3 or Sl.No.54 of Notification No.12/2017-Central Tax (Rate), dtd. 28/6/2017 and it is exempted from payment of tax. However, without considering the reply of the petitioner in proper manner, the 2nd respondent held that the petitioner has let out 35000 Mts of space on monthly rental basis and delivered possession and therefore the said activity attracts tax @ 9% under SGST and CGST as prescribed in Entry No.997212 and disagreed with the contention of the petitioner that the services rendered by the petitioner are exempted under Notification No12/2017 - Central Tax (Rate), dtd. 28/6/2017.

(3.) The 2nd respondent filed counter and opposed the writ petition.