M/S. Sri Surya Ratna Modern Rice Mill vs. Assistant Commissioner Of State Tax
Held
The Court allowed the writ petitions, setting aside the appellate orders passed by the 2nd respondent and the assessment orders passed by the 1st respondent. The Court reasoned that the subject matter was covered by its previous order in W.P.No.45971 of 2018, dated 20.11.2020. The GST was levied on the value of by-products (broken rice, bran, and husk) by treating them as part of the consideration for custom milling of paddy. The ratio decidendi is that if a previous High Court judgment squarely covers the issue, subsequent similar cases should follow that precedent. The operative direction was to set aside the impugned orders. However, the Court clarified that the petitioners remain liable to pay tax on the sale of these by-products if they are statutorily taxable. No issue was expressly left undecided.
Facts
The petitioners filed writ petitions challenging appellate orders passed by the 2nd respondent, which confirmed assessment orders issued by the 1st respondent. These assessment orders levied Goods and Services Tax (GST) on the value of broken rice, bran, and husk. These by-products were obtained by the petitioners 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 did not dispute this contention. The Court was considering these writ petitions.
Key Issues
1. Whether the by-products of custom milling, namely broken rice, bran, and husk, obtained by the petitioners, are to be treated as part of the consideration for custom milling services, thereby attracting GST. The petitioners contended that the issue is squarely covered by this Court's order in W.P.No.45971 of 2018, dated 20.11.2020, and therefore, the GST levied on these by-products should be set aside. The Revenue (represented by the Government Pleader for Commercial Tax) did not dispute the applicability of the previous High Court order, implying no argument was presented against the petitioners' claim on this point.
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 Nos.3252, 3261, 3269 and 3271 of 2021
COMMON ORDER: (per UDPR,J)
These writ petitions are filed challenging the appellate orders passed by the 2nd respondent in confirming 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 K.V.J.L.N.Sastry, learned Government Pleader for Commercial Tax representing on behalf of respondents 1 to 3, learned Assistant Solicitor General, representing on behalf of 4th respondent and Sri P.Hema Chandra, learned standing counsel 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.
The judgment continues below.
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