M/S. Vasavi Agr Food Industries vs. The Assistant Commissioner
Held
The Court allowed the writ petition. It held that the assessment order passed by the 1st respondent, which levied GST on the value of by-products (broken rice, bran, and husk) by treating them as part of the consideration paid for custom milling of paddy, was liable to be set aside. This decision was based on the reasoning that the issue was squarely covered by the High Court's previous order in W.P.No.45971 of 2018. The ratio decidendi is that if a matter is covered by a previous judgment of the High Court, a similar outcome should follow. The Court set aside the assessment order but clarified that the petitioner would be liable to pay tax on the sale of these by-products if they are statutorily taxable. No costs were awarded.
Facts
The petitioner filed a writ petition challenging an assessment order passed by the 1st respondent. This order levied Goods and Services Tax (GST) on the value of broken rice, bran, and husk, which were obtained by the petitioner from custom milling of paddy. The petitioner argued that the issue was covered by a previous order of the High Court in W.P.No.45971 of 2018, dated 20.11.2020. The learned Government Pleader for Commercial Tax, representing the respondents, did not dispute this submission. The writ petition was heard by a bench of the High Court.
Key Issues
1. Whether the assessment order passed by the 1st respondent, levying GST on the value of broken rice, bran, and husk obtained from custom milling of paddy, is liable to be set aside, considering the precedent set by this Court in W.P.No.45971 of 2018? Petitioner's Contention: The petitioner contended that the subject matter of the writ petition is squarely covered by the order passed by this Court in W.P.No.45971 of 2018, dated 20.11.2020, and therefore, a similar order should be passed in the present case. The petitioner relied on the said previous order of the High Court. Revenue's Contention: The learned Government Pleader for Commercial Tax, representing the respondents, did not dispute the petitioner's submission regarding the applicability of the previous 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.4801 of 2021
ORDER: (per UDPR,J)
This writ petition is filed challenging 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.
Following the above said order and for the reasons recorded the
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.