M/S. Sri Venkatachalapathi Rice Traders vs. The Assistant Commissioner (St)
Held
The Court allowed the writ petition, setting aside the assessment order passed by the 1st respondent. The Court reasoned that the issue was covered by its previous order in W.P.No.45971 of 2018. The assessment order had levied GST on the value of by-products (broken rice, bran, and husk) by treating them as part of the consideration paid to the petitioner for custom milling of paddy. The Court clarified that the petitioner would still 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 assessment orders passed by the 1st respondent, which levied Goods and Services Tax (GST) on the value of broken rice, bran, and husk. These by-products were obtained by the petitioner during the 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, dated 20.11.2020. The learned Government Pleader for Commercial Tax, representing the respondents, did not dispute this contention. The writ petition was heard by a Division Bench of the High Court.
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 petitioner's submission that the issue is covered by a previous High Court order? (Question of law) Petitioner's Contention: 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, the same order should be applied to this case. 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 previous order.
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HON'BLE SRI JUSTICE U. DURGA PRASAD RAO AND HON’BLE MS. JUSTICE J. UMA DEVI
WRIT PETITION No.3886 of 2021
ORDER: (per UDPR,J)
This writ petition is filed challenging the assessment orders 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 G.Narendra Chetty, learned Government Pleader for Commercial Tax, representing on behalf of respondents 1 and 2, Sri P.Hema Chandra, learned standing counsel, representing on behalf of 3rd respondent and learned Assistant Solicitor General, representing on behalf of the 4th 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 therein, this writ petition i
The judgment continues below.
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