Andhra Pradesh High Court – Amravati
Jawaharlal Nehru Technological … vs Joint Commissioner on 27 April, 2026
Author: R Raghunandan Rao
Bench: R Raghunandan Rao
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W.P.No.23535 of 2023 and batch
APHC010454232023
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI [3529]
(Special Original Jurisdiction)
MONDAY, THE TWENTY SEVENTH DAY OF APRIL
TWO THOUSAND AND TWENTY SIX
PRESENT
THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
W.P.No.23535, 31934 of 2023, 7867 and 26414 of 2025 and W.P.9123 of
2026
WRIT PETITION NOs: 23535 of 2023
Between:
1. JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA
(JNTUK), REPRESENTED BY ITS REGISTRAR, PITHAPURAM
ROAD, KAKINADA, EAST GODAVARI DISTRICT, ANDHRA
PRADESH-533 003
...PETITIONER
AND
1. THE PRINCIAPL COMMISSIONER OF CENTRAL TAX,
VISAKHAPATNAM CGST COMMISSIONERATE, GST BHAVAN,
PORT AREA, VISAKHAPATNAM-530 035
2. THE ADDITIONAL COMMISSIONER OF CENTRAL TAX, OFFICE OF
THE PRINCIPAL COMMISSIONER- OF CENTRAL TAX,
VISAKHAPATNAM CGST COMMISSIONERATE, GST BHAVAN,
PORT AREA, VISAKHAPATNAM-530 035
3. THE UNION OF INDIA, THROUGH ITS REVENUE SECRETARY,
DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, 128-
A/NORTH BLOCK, NEW DELHI
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...RESPONDENT(S):
Petition under Article 226 of the Constitution of India praying that in the
circumstances stated in the affidavit filed therewith, the High Court may be
pleased to issue a Writ, Order or Direction particularly one in the nature of
‘WRIT OF MANDAMUS’ a)Setting aside the Order-in-Original No. VSP-
CGST-ADC 08-23-24 dt.06.06.2023 demanding Goods and Services Tax for
an amount of Rs. 2,64,87,723/- along with interest and penalties as being
arbitrary, illegal, perverse, and contrary to the provisions of the Central Goods
and Services Tax Act, 2017 and Rules made thereunder. and b)Pass
IA NO: 1 OF 2023
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased
For the reasons stated in the affidavit filed in support of the above Writ
Petition, the petitioner prays that this Honourable Court to direct Respondent
No.2 to refrain from recovery of the demands confirmed in the Order-in-
Original No. VSP-CGST-ADC-08-23-24 dt.06.06.2023 passed by the
Respondent No.2 and pass such other order or orders as the Honourable
Court may deem fit and proper in the circumstances of the case
IA NO: 2 OF 2023
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased
pleased to vacate the interim order passed in LA No. 1 of 2023 in
dt.11.10.2023 in W P No. 23535 of 2023 and to pass
Counsel for the Petitioner:
1. LAKSHMI KUMARAN SRIDHARAN
Counsel for the Respondent(S):
1. HARINATH N (DEPUTY SOLICITOR GENERAL OF INDIA))
2. SANTHI CHANDRA (Jr. Standing Counsel for CBIC)
Date of Judgment Reserved : 07.04.2026
Date of Pronouncement : 27.04.2026
Date of Upload : 27.04.2026
3RRR,J & TCDS,J
W.P.No.23535 of 2023 and batchThe Court made the following common order:
(per Hon‟ble Sri Justice R. Raghunandan Rao)
As the issues raised in all these Writ Petitions are common, they are
being disposed of, by way of this common order.
2. The petitioners, in all these Writ Petitions are Public
Universities, established by the State of Andhra Pradesh, by way of different
Acts. All these Universities have suffered orders of assessment, calling upon
the petitioners to pay GST on the affiliation fees and No Objection Certificate
(NOC) fees received by these Universities, from their affiliated colleges. The
details of the orders of assessment etc., are given herein below:
Name of the Period of Date of Order
S.No. W.P.No.
University Assessment of Assessment
Jawaharlal Nehru
W.P 23535 Technological 01/07/2017 to
1 06/06/2023
of 2023 University Kakinada 31/03/2020
(JNTUK)
W.P 31934 Acharya Nagarjuna 01/07/2017 to
2 25/08/2023
of 2023 University 31/03/2022
W.P 7867 Adi Kavi Nannayya 01/07/2017 to
3 19/11/2024
of 2025 University 31/03/2022
W.P 26414 Vikrama Simhapuri 01/04/2019 to
4 03/09/2025
of 2025 University 31/03/2025
W.P 9123 01/04/2018 to
5 Krishna University 01/12/2025
of 2026 31/03/2024
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3. The petitioners have been established under different Acts. The
details of these Acts are given below:
The Act under which the
Sl.No. W.P.No. Name of the University
University has been establishedJawaharlal Nehru
W.P 23535 Jawaharlal Nehru Technologies
1 Technological University
of 2023 University act, 2008
Kakinada (JNTUK)W.P 31934 Acharya Nagarjuna Andhra Pradesh Universities
2
of 2023 University Act, 1991W.P 7867 of Adi Kavi Nannayya Andhra Pradesh Universities
3
2025 University Act, 1991
W.P 26414 Vikrama Simhapuri Andhra Pradesh Universities
4
of 2025 University Act, 1991
W.P 9123 of Andhra Pradesh Universities
5 Krishna University
2026 Act, 1991
4. The assessing authorities in all these cases have sought to tax
the receipt of affiliation fees and N.O.C fees, under the GST Act, on the
ground that the fees had been paid for services rendered by the respective
Universities and the same is taxable under the GST Act. The petitioners had
objected to the said taxation, on the ground that they are universities
incorporated under the respective Acts, passed by the Andhra Pradesh State
Legislature and the affiliation fee and statutory fee collected by them is in
discharge of statutory functions which cannot be treated as supply of services
in the course of business activity. The petitioners also took the stand that
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these fees would fall under Entry No.66 of GST exemption notification No.12
of 2017, dated 28.06.2017, and as such, no GST can be levied on supply of
such services. The assessing officers rejected these contentions on the
ground that any supply of service, even if it is a supply of service, in
pursuance of statutory function, would be taxable, in view of the provisions of
the GST Act. The Assessing Officer further held that the petitioners are not
entitled to the exemption set out under Entry No.66 of Notification 12 of 2017
on the ground that the supply of service of affiliation and issuance of No
Objection Certificates do not fall within the ambit of Entry No.66 of
Notification 12 of 2017.
5. Various ancillary issues on the question of whether Section 74
of the GST Act can be invoked, against the petitioners have also been raised.
All the aforesaid orders are now under challenge in the present Writ Petitions.
6. Heard Sri C. Raghavan Ramabhadran, Sri Shaik Jeelani
Basha, Sri S. Suri Babu, Sri C. Sanjeeva Rao, learned counsel appearing
for the Petitioners and Smt. Shanti Chandra, learned Standing Counsel
appearing for the Respondent.
7. In order to consider the contentions raised by the petitioners, it
would be appropriate that the facts relating to one case be taken up for
consideration. Accordingly, the petition in W.P.No.23535 of 2023 is being
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taken up for consideration. It may also be noted that the contentions
raised by the petitioners are essentially the same.
8. Sri C. Raghavan Ramabhadran, the learned counsel appearing
for the petitioner in this Writ Petition contends as follows:
A. The petitioner is the Jawaharlal Nehru Technological University,
Kakinada which has been established under the Jawaharlal Nehru
Technological Universities Act, 2008. This University has been established to
have jurisdiction over eight erstwhile Districts of Andhra Pradesh. The said Act
sets out the various functions that will be carried out by the petitioner
university as well as the structure of the petitioner university and other
aspects. The petitioner University has to act in accordance with the UGC
guidelines, which are issued from time to time. Under the relevant UGC
guidelines, no college can admit students without obtaining affiliation from the
appropriate university. All Engineering Colleges, which are sought to be
established and run in the area of jurisdiction of the petitioner university, are
required to obtain affiliation from the petitioner university. Similarly, the
colleges are also required to obtain no objection certificates from the
University for Recognition by the government. The application for grant of
affiliation and for no objection certificates are governed by statute. As far as
grant of affiliation is concerned, the UGC guidelines require Colleges seeking
affiliation to make formal applications and for the concerned universities to
ascertain whether the colleges have necessary infrastructure and faculty for
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W.P.No.23535 of 2023 and batchconduct of classes. After such examination and verification, the concerned
universities are required to grant affiliation. All these functions are mandatory
and the petitioner university does not have any discretion in the matter. The
petitioner university would have to consider any application made by any
college, within its area, for grant of affiliation and grant such affiliation if all the
conditions necessary for such affiliation are complied or refuse affiliation, if
such conditions are not complied. The grant of affiliation and issuance of no
objection certificates are not voluntary acts by the petitioner university and are
acts, which are regulated and governed by the statute as well as the UGC
guidelines. Another aspect of the matter is that the petitioner university is not a
private organization, but an entity which has been established under a State
Act and is discharging functions, stipulated under the said Act and other
guidelines such as the UGC guidelines. This would make the petitioner
university a government entity or a government authority, for the purposes of
the GST Act.
B. Section 9 of the GST Act provides for levy of tax on supply of
services. The expression supply of services, is contained in the inclusive
definition set out under Section 7 of the GST Act. The said definition makes it
clear that only activities conducted in the course or furtherance of a business
can be categorized as supply of services which are taxable under Section 9.
This is in view of the Definition of business contained in Section 2 (17) of the
GST Act.
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W.P.No.23535 of 2023 and batchC. A conjoint reading of all the aforesaid provisions and submissions
would make it clear that the petitioner university is not conducting business
nor supplying services in the course of or in furtherance of business. In such
circumstances, there can be no levy of GST under Section 9 of the GST Act.
D. In the alternative, even if the said activities are to be treated as
taxable supplies of service, the same are exempt on account of Entry No. 66
in Notification Number 11 of 2017, dated 28.06.2017. Apart from this there is a
further exemption available under Entry 4 and Entry 5 of notification number
12 of 2017 dated 28.06.2017.
E. Entry No. 66 of Notification Number 1 of 2017 states that any
service provided by an educational institution to its students, faculty or staff
would also be exempt from tax if such service provides for admission of
students to colleges. In the present case, no college can admit students
unless the university has given affiliation to the college. Therefore, the
Admission of students being dependent upon the grant of affiliation,
automatically brings the ground of affiliation within the exempted services
under Entry No. 66.
F. Entry 4 of Notification Number 12 of 2017 exempts services of a
governmental authority, by way of any activity which could be entrusted to a
Municipality under Article 243-W of the Constitution. Similarly, services by a
governmental authority in relation to any function entrusted to a panchayat
would also be exempt. The definition of governmental authority contained in
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that notification at Clause 2(z)(f) and the definition of government entity
contained in clause 2 (z)(f)(a) includes anybody, which is set up under an Act
of a State Legislature. This provision would be squarely applicable to the
petitioner university as it has been set up under an Act of a State Legislature.
Further, the petitioner university is also carrying out the function of the
Panchayaths and Municipalities.
G. These issues have been considered by the High Court of
judicature of Bombay at Goa in Goa University versus Joint Commissioner
of CGST Panjab.1 ; the High Court of Delhi in the case of Central Electricity
Regulatory Commission vs. The Additional Director, DGGI.2 ; The Hon‟ble
High Court of Karnataka in the case of Bengaluru North University vs. Joint
Commissioner of central tax3, and all the High Courts have held in favour of
the Petitioners.
9. Smt. Shanti Chandra, the learned Standing Counsel, on the other
hand, would contend that any supply of service, by a governmental authority is
taxable in view of the provisions of Section 7 as well as Section 2(17) defining
the term „business.‟ She would further contend that the said provisions, when
read together, make out a case where any supply of service by a government
or any governmental authority, would be taxable unless such activities have
been enumerated in schedule-III of the GST Act or where specific exemptions
1
2025 (96) GSTL 513 (Bombay)
2
2025 (95) G.S.T.L. 277 (Del.)
3
2025:KHC:16686
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are granted by the government under the provisions of Section 7(2)(b). She
would submit that since the activities, in question, do not fall under schedule-
III nor has any exemption been given under Section 7(2)(b) of the GST Act,
the contention that the fees collected, for grant of affiliation and issuance of
No Objection Certificates, are taxable.
10. Smt. Shanthi Chandra would also contend that the petitioner does
not get any exemption either under Entry No.66 of Notification Number 11 of
2017, dated 28.06.2017 and or Entries 4 and 5 of Notification Number 12 of
2017, dated 28.06.2017. She would further submit that this issue has already
been considered by the Hon‟ble High Court of Telangana in W.P.No.34617 of
2022 and batch, decided on 17.10.2023. She would contend that the Hon‟ble
High Court of Telangana after considering the very same arguments followed
by the petitioners, in the present case, had rejected these arguments and had
held that there was no exemption, under the aforesaid entries in Notification
Number 1 of 2017 or Notification Number 12 of 2017.
Consideration of the Court:
11. It would be necessary to notice certain provisions of law and
entries in the notifications. Section 2(17), Section 7 and Section 9(1) of the
GST Act read as follows:
2(17) “business” includes—
(a) any trade, commerce, manufacture, profession, vocation,
adventure, wager or any other similar activity, whether or not it
is for a pecuniary benefit;
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(b) any activity or transaction in connection with or incidental or
ancillary to sub-clause (a) ;
(c) any activity or transaction in the nature of sub-clause (a) ,
whether or not there is volume, frequency, continuity or
regularity of such transaction;
(d) supply or acquisition of goods including capital goods and
services in connection with commencement or closure of
business;
(e) provision by a club, association, society, or any such body
(for a subscription or any other consideration) of the facilities or
benefits to its members;
(f) admission, for a consideration, of persons to any premises;
(g) services supplied by a person as the holder of an office
which has been accepted by him in the course or furtherance of
his trade, profession or vocation;
5[(h) activities of a race club including by way of totalisator or a
license to book maker or activities of a licensed book maker in
such club; and]
(i) any activity or transaction undertaken by the Central
Government, a State Government or any local authority in
which they are engaged as public authorities;
Section 7. Scope of supply.
(1) For the purposes of this Act, the expression “supply”
includes—
(a) all forms of supply of goods or services or both such
as sale, transfer, barter, exchange, Licence, rental, lease
or disposal made or agreed to be made for a
consideration by a person in the course or furtherance of
business;
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[(aa) the activities or transactions, by a person, other
than an individual, to its members or constituents or
vice-versa, for cash, deferred payment or other valuable
consideration.
Explanation.—For the purposes of this clause, it is hereby
clarified that, notwithstanding anything contained in any other
law for the time being in force or any judgment, decree or order
of any Court, tribunal or authority, the person and its members
or constituents shall be deemed to be two separate persons
and the supply of activities or transactions inter se shall be
deemed to take place from one such person to another;]
(b) import of services for a consideration whether or not in the
course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be
made without a consideration;
[(1A) Where certain activities or transactions constitute a supply
in accordance with the provisions of sub-section (1), they shall
be treated either as supply of goods or supply of services as
referred to in Schedule II.]
(2) Notwithstanding anything contained in sub-
section (1),—
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the
Central Government, a State Government or any local
authority in which they are engaged as public authorities,
as may be notified by the Government on the
recommendations of the Council, shall be treated neither
as a supply of goods nor a supply of services.
(3) Subject to the provisions of [sub-sections (1),
(1A) and (2)], the Government may, on the recommendations of
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the Council, specify, by notification, the transactions that are to
be treated as—
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
Section 9. Levy and collection.
(1) Subject to the provisions of sub-section (2), there
shall be levied a tax called the central goods and
services tax on all intra-State supplies of goods or
services or both, except on the supply of alcoholic
liquor for human consumption and un-denatured
extra neutral alcohol or rectified spirit used for
manufacture of alcoholic liquor, for human
consumption, on the value determined under section
15 and at such rates, not exceeding twenty per
cent., as may be notified by the Government on the
recommendations of the Council and collected in
such manner as may be prescribed and shall be
paid by the taxable person.
12. Sl.Nos.4 and 5, of Notification 12 of 2017 and Serial No. 66 of
Notification No.1 of 2017 are extracted below:
4 Chapter 99 Services by governmental authority Nil Nil
by way of any activity in relation to
any function entrusted to a
municipality under article 243 W of
the Constitution.
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5. Chapter 99 Services by a “Governmental Nil Nil
Authority] by way of any activity in
relation to any function entrusted to a
Panchayat under article 243G of the
Constitution
(Heading Services provided-
9992 or
66 Heading
(a) by an educational institution to its
9963) students, faculty and staff;
(aa) by an educational
institution by way of conduct of
entrance examination against
consideration in the form of entrance
fee.
(b) to an educational institution, by
way of-
(i) transportation of students, faculty
and staff;
(ii) catering, including any mid-day
meals scheme sponsored by the
Central Government, State
Government or Union territory,
(iii) security or cleaning or
housekeeping services performed in
such educational institution;
(iv) services relating to admission to,
or conduct of examination by, such
institution:
(v) Supply of online educational
journals or periodicals:]
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13. Section 9(1) provides for levy of tax on all intra-state supplies of
goods and services barring certain categories. The term “supply of services”
has not been defined in the definitions clause contained in Section 2 of the
GST Act. However, the scope of supply, has been explained in Section 7 of
the GST Act. This provision, which is an inclusive provision, brings within its
ambit, any supply of services, in any form, if it is in the course of or in
furtherance of business. While Section 7(1) describes supply of services in the
above manner, Section 7(2) (a) states that any activity or transaction
contained in schedule-III to the GST Act, would not be treated as a supply of
services, even if it falls within the ambit of Section 7(1) of the GST Act.
Similarly, Section 7(2)(b) takes out supply of services, undertaken by a
Central Government, State Government or local authority, from the ambit of
Section 7, if such activities or transactions are notified by the government on
the recommendation of the Council.
14. A reading of these provision, reveals that the legislature was
envisaging two categories of supplies. Firstly, supplies made by Non State
authorities and secondly, by State authorities. Section 7(1), which deals with
the first category, covers supply of services, in the course of or in the
furtherance of business. This would mean that any supply of service which is
not in the course of business, would not be a taxable supply of service.
Though, Section 7 (1) is couched as an inclusive definition, the above
interpretation appears to be the appropriate interpretation, in the absence of
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any further guidance, in this provision. However, the legislature while
considering supply of services by the Central Government or State
Government or by any local authority appears to have removed the question
of whether supply is made in the course of business or not. It appears that the
Central, State and Local Governments have been put under a separate
category where questions of whether supply of services is in pursuance of
business or not, is irrelevant and all supplies of services, irrespective of
whether it is in the course of business or not, are taxable, unless they are
protected by including them in Schedule-III or by way of a specific notification.
15. This view is further fortified by Section 2(17)(i) which has brought
in all activities of the Central Government, State Government or Local
Authority into the ambit of business whether the conditions set out in Section
2(17)(a) to (h) are attracted or not. The legislature by including Section 7(2),
though in a negative form, appears to reiterate that all activities of the Central
Government, State Government, or Local Authorities would be taxable
whether they are in the course of or in furtherance of business, or not.
16. This brings up the question of whether the petitioner universities
would be the Central Government, a State Government or a Local Authority.
This issue comes up because the supply of the service, of grant of affiliations
or issuance of No Objection Certificate, by the petitioner university would be
taxable, without going into the question of whether such activity is in the
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course of or in furtherance of business or not, if the university answers the
description of the Central Government, State Government or Local Authority.
17. The petitioner universities are all universities which are separate
entities, created and established under the Acts of the State Legislature and
they are not part of the State Government or Local Authority. They are not
part of the Central Government either. In such circumstances, the provisions
of Section 7(2) or Section 2(17)(i) would not be applicable to the petitioner
universities.
18. The term „business‟, as defined in Section 2(17), clearly does not
include statutory functions, which are cast upon the petitioner universities. The
activities mentioned in Section 2(17) are voluntary actions. However, the
petitioner universities are duty bound and are mandated to consider and grant
or refuse to grant affiliation or No Objection Certificates. In such a situation,
the activity of the petitioner universities in granting affiliations is a statutory
function and is not a business activity. Consequently, the activities of the
petitioner universities do not constitute supply of service as provided in
Section 7 of the GST Act. Consequently, these services would not be exigible
to tax.
19. This view, of this Court, is fortified by the aforesaid judgments
cited by Sri C. Raghavan Ramabhadran. This Court does not propose to
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extract any of the aforesaid judgments. However, this Court would only record
that it is in respectful agreement with the aforesaid judgments.
20. The second issue of whether these services are exempted under
the notifications mentioned above would remain. In view of the fact that this
Court has now held that the services, which are sought to be taxed, are not
taxable, the question of whether such services require the exemption granted
under the aforesaid notifications could not arise. Before parting with the case,
it would also be necessary to record that, in the judgment of the Hon‟ble High
Court of Telangana, cited by Smt. Shanthi Chandra, the issue raised before
the Hon‟ble High Court of Telangana was only on the question of whether the
entries in the notifications mentioned above, provide such exemption. The
issue of whether the said services were not taxable, in the first place, was not
raised. In such circumstances, the said judgment may not be relevant for the
purposes of determining whether the services are taxable or not.
21. In view of the above, these Writ Petitions are allowed setting
aside the orders, which have been impugned in these writ petitions, and set
out in the table extracted above. There shall be no order as to costs.
As a sequel miscellaneous applications, if any, shall stand closed.
_______________________
R RAGHUNANDAN RAO, J
________________
T.C.D.SEKHAR, J
RJS
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THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO
AND
THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
W.P.No.23535, 31934 of 2023, 7867 and 26414 of 2025 and W.P.9123 of
2026
(per Hon’ble Sri Justice R Raghunandan Rao)
27.04.2026
RJS
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