M/S. Sri Sivasankara Modern Rice Mill vs. The Assistant Commissioner (State Taxes)

Held

The Court allowed the writ petition, following its previous order in W.P.No.45971 of 2018. 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 for custom milling of paddy, was set aside. 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. The reasoning was based on the precedent established in the earlier writ petition, which was not disputed by the revenue. The operative direction was to set aside the impugned assessment order.

Facts

The petitioner filed a writ petition challenging an assessment order passed by the 1st respondent (authority not specified). 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 Government Pleader for Commercial Tax did not dispute this contention. The Court considered the previous order and the arguments presented.

Key Issues

1. Whether the assessment order levying GST on the value of broken rice, bran, and husk obtained from custom milling of paddy is valid, considering the precedent set by this Court in W.P.No.45971 of 2018 dated 20.11.2020? (Question of law) Petitioner's Contentions: - 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. - The same order should be passed in the present writ petition. Revenue's Contentions: - The learned Government Pleader for Commercial Tax representing the respondents did not dispute the fact that the matter is covered by the previous order.