M/S. Sri Sairam Modern Rice Mill vs. The Assistant Commissioner (St)
Held
The High Court allowed the Writ Petition. The Court held that the issue in the present petition is covered by its previous order dated 20.11.2020 in W.P.No.45971 of 2018. Consequently, the impugned order was set aside specifically in relation to the levy of GST on the value of by-products, namely broken rice, bran, and husk, when treated as part of the consideration paid to the petitioner for milling paddy. The reasoning is based on the precedent established by the earlier High Court order. The operative direction is to set aside the impugned order to the extent of the levy on by-products. No costs were awarded. No issues were expressly left undecided.
Facts
The petitioner filed a Writ Petition challenging an order concerning the levy of Goods and Services Tax (GST). The dispute pertains to the tax period not explicitly stated in the judgment. The impugned order, passed by an unspecified authority, sought to levy GST on the value of by-products, namely broken rice, bran, and husk, treating them as part of the consideration received by the petitioner for milling paddy. The petitioner contended that these by-products should not be subject to GST as part of the milling consideration. The matter was brought before the High Court.
Key Issues
1. Whether the by-products, specifically broken rice, bran, and husk, generated during the milling of paddy, constitute consideration for the milling service and are thus exigible to GST, as per the impugned order? Petitioner's contention: The petitioner argued that these by-products are not part of the consideration for milling services. The judgment does not explicitly record the petitioner's detailed arguments or any specific provisions or precedents relied upon, other than the submission that the issue is covered by a previous order of the High Court. Revenue's contention: The Revenue, represented by the Government Pleader, submitted that the issue in the present Writ Petition is covered by a prior order of the High Court dated 20.11.2020, passed in W.P.No.45971 of 2018. No further arguments or reliance on specific provisions or precedents by the Revenue were recorded.
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THE HONOURABLE SRI JUSTICE A.V.SESHA SAI
AND THE HONOURABLE MS.JUSTICE J.UMA DEVI
WRIT PETITION No.8293 of 2021
ORDER: (Per Honourable Sri Justice A.V.Sesha Sai)
When the matter is taken up, it is submitted by both the learned counsel for the petitioner and the learned Government Pleader for Commercial Tax that the issue in the present Writ Petition is covered by the order, dated 20.11.2020, passed by this Court in W.P.No.45971 of 2018. A copy of the said order is placed on record.
Following the above said order and for the reasons recorded therein, this Writ Petition is allowed, setting aside the order impugned insofar as the same relates to the levy of GST on the value of by-products i.e., broken rice, bran and husk treating them as part of consideration paid to the petitioner for milling of the paddy. There shall be no order as to costs.
As a sequel thereto, miscellaneous Petitions, if any, pending in these Writ Petitions, shall stand closed.
__________________ A.V.SESHA SAI, J
___________
The judgment continues below.
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