Sri Sitaramanjaneya Rice Mill vs. The Assistant Commissioner (State Taxes)
Held
The Court allowed the writ petitions, following its previous order in W.P.No.45971 of 2018. The assessment orders 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 for custom milling of paddy, were set aside. The Court clarified that the petitioners would still be liable to pay tax on the sale of these by-products if they are statutorily taxable. The reasoning is based on the concession by the revenue that the present cases are covered by the earlier judgment. The ratio decidendi is that if a matter is covered by a previous High Court order, and the revenue does not dispute it, the same relief should be granted. The operative direction was to set aside the assessment orders.
Facts
The petitioners filed a batch of writ petitions challenging assessment orders passed by the 1st respondent (authority not specified but implied to be a GST authority). These orders levied Goods and Services Tax (GST) on the value of broken rice, bran, and husk, which were obtained by the petitioners as by-products from the custom milling of paddy. The petitioners 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 Government Pleader for Commercial Tax, representing the respondents, did not dispute this fact. The assessment orders treated these by-products as part of the consideration paid for custom milling.
Key Issues
1. Whether the assessment orders levying GST on the value of broken rice, bran, and husk obtained from custom milling of paddy are valid, considering the precedent set by this Court in W.P.No.45971 of 2018. Petitioner's contention: The subject matter of these writ petitions is squarely covered by the order passed by this Court in W.P.No.45971 of 2018, dated 20.11.2020, and therefore, the same order should be applied. No specific provisions or authorities were cited by the petitioner in the provided text, but the reliance is on a prior High Court judgment. Revenue's contention: The learned Government Pleader for Commercial Tax representing the respondents did not dispute the petitioner's submission that the matter is covered by the aforementioned High Court order.
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HON'BLE SRI JUSTICE U. DURGA PRASAD RAO AND HON’BLE MS. JUSTICE J. UMA DEVI
WRIT PETITION Nos.18543, 18594, 18897 and 18898 of 2019
COMMON ORDER: (per UDPR,J)
These batch of writ petitions are filed challenging the assessment orders passed by the 1st respondent levying GST on the value of broken rice, bran and husk obtained by the petitioners on custom milling of the paddy.
Heard learned counsel for petitioners, Sri Srinivasa Rao Kudupudi, 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 respondents 2 and 3 and learned Assistant Solicitor General representing on behalf of 5th respondent.
When the matter is taken up for hearing, learned counsel for petitioners would submit that the subject matter in these writ petitions 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 these writ petitions also. Learned Government Pleader for Commercial Tax representing on behalf of respondents has not disputed the said fact.
Following the above said order and
The judgment continues below.
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