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2020 (5) TMI 686 - ANDHRA PRADESH HIGH COURTLevy of GST in addition to licence fee - business for the work of contract of maintenance of toilets in the Bus Station, Guntur, including all offices of the Bus Station on a monthly licence fee - HELD THAT:- The petitioner was entrusted with the work contract of maintenance of toilets in the Bus Station, Guntur by licence deed dated 19.02.2017 from 19.02.2017 to 18.02.2019 extendable to one year subject to satisfactory performance of the contract by the petitioner on a monthly enhanced licence fee payable to the Corporation by collecting user charges from the toilet users. As per clause 43 of the licence deed, the petitioner is liable to pay 18% towards GST (9% of Central GST and 9% of State GST) in addition to the licence fee. But, as per Notification No.12/2017- Central Tax (Rate), dated 28-06-2017 issued by the Central Government and G.O.Ms.No.588, Revenue (Commercial Taxes-II) Department, dated 12-12-2017 issued by the Government of Andhra Pradesh - On perusal of the impugned proceedings dated 19.01.2019, this court found that the 3rd respondent issued the said proceedings only based on the licence deed and without reference to the Notification and the G.O. It is well settled that any clauses and the terms and conditions in the agreement or licence deed, which are contrary to the provisions of law and the notifications issued by the Governments, could not bind the parties to the agreement. Therefore, the action of the respondents in insisting payment of GST as per clause 43 of the licence deed is found to be illegal, arbitrary and contrary to the Notification and the G.O. The 3rd respondent being the class-I officer of the respondent Corporation is under obligation to consider the purport of the notifications and the orders issued by the competent authority granting exemptions from payment of GST by the petitioner as he is supported by well competent legal department and legal advisors, instead of driving the petitioner to this court - the impugned proceedings issued by the 3rd respondent are liable to be set aside - Petition allowed.
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