M/S. Sri Vasavi Traders vs. The Assistant Commissioner
Held
The Court allowed the writ petition, setting aside the appellate order of the 2nd respondent and the assessment order of the 1st respondent. The Court reasoned that the issue was covered by its previous order in W.P.No.45971 of 2018. The principle established is that by-products of custom milling, such as broken rice, bran, and husk, are not to be treated as part of the consideration for custom milling services for the purpose of levying GST, unless they are otherwise statutorily taxable upon their sale. The operative direction was to set aside the impugned orders. The Court clarified that the petitioner remains liable to pay tax on the sale of these by-products if they are statutorily taxable. No specific issue was left undecided.
Facts
The petitioner filed a writ petition challenging an appellate order passed by the 2nd respondent, which confirmed an assessment order by the 1st respondent. The assessment order levied GST on the value of broken rice, bran, and husk generated from the petitioner's custom milling of paddy. The petitioner contended that the issue was covered by a previous order of the High Court in W.P.No.45971 of 2018. The respondents, represented by the Government Pleader for Commercial Tax, did not dispute this contention. The tax period and the specific amount in dispute are not explicitly stated in the provided text.
Key Issues
1. Whether the by-products of custom milling, namely broken rice, bran, and husk, are to be treated as part of the consideration for custom milling services and thus subject to GST, as held by the assessing and appellate authorities? Petitioner's contention: The petitioner argued that the present writ petition is squarely covered by the High Court's order in W.P.No.45971 of 2018, dated 20.11.2020, and therefore, the same relief should be granted. The petitioner did not elaborate on the specific legal arguments from the cited precedent. Revenue's contention: The learned Government Pleader for Commercial Tax did not dispute the petitioner's submission that the matter is covered by the aforementioned High Court order.
AI-generated summary — verify with the full judgment below
HON'BLE SRI JUSTICE U. DURGA PRASAD RAO AND HON’BLE MS. JUSTICE J. UMA DEVI
WRIT PETITION No.5284 of 2021
ORDER: (per UDPR,J)
This writ petition is filed challenging the appellate order passed by the 2nd respondent in confirming the assessment order passed by the 1st respondent levying GST on the value of broken rice, bran and husk obtained by the petitioner on custom milling of the paddy.
Heard learned counsel for petitioner, Sri K. Srinivasa Rao, learned Government Pleader for Commercial Tax, representing on behalf of respondents 1 and 4, Sri P.Hema Chandra, learned standing counsel, representing on behalf of 2nd and 3rd respondents and learned Assistant Solicitor General of India, representing on behalf of the 5th respondent.
When the matter is taken up for hearing, learned counsel for petitioner would submit that the subject matter in this writ petition is squarely covered by the order passed by this Court in W.P.No.45971 of 2018, dated 20.11.2020 and the same order may be passed in this writ petition also. Learned Government Pleader for Commercial Tax representing on behalf of respondents has not disputed the said fact.
F
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