M/S Sri Vijayalaxmi Ganesha Modern Rice Mill vs. Assistant Commissioner Of State Tax
Held
The Court allowed the writ petition, stating that the issue was squarely covered by a Division Bench order dated November 20, 2020, in W.P.No.45971 of 2018. In that prior case, the assessment order was set aside insofar as it related to the levy of GST on the value of by-products (broken rice, bran, and husk), treating them as part of the consideration paid for milling paddy. The present writ petition was allowed in terms of that previous order. The operative direction was to set aside the impugned assessment order concerning the levy of GST on by-products. The issue regarding the direction for the 5th respondent to pay GST on Custom Milled Rice charges was implicitly addressed by allowing the petition in terms of the previous order, which specifically dealt with the levy on by-products.
Facts
The petitioner filed a writ petition challenging an order dated August 17, 2020, passed by the 2nd respondent, which confirmed an order dated January 5, 2019, passed by the 1st respondent. These orders pertained to the tax period from July 2017 to June 2018 under the CGST/Andhra Pradesh SGST Act. The petitioner sought to quash the confirmation order and declare that they are not liable to pay GST on the value of broken bran and husk retained as by-products from milling paddy for the 5th respondent. Additionally, the petitioner sought a direction for the 5th respondent to pay GST at 5% on Custom Milled Rice charges of Rs. 15/- per quintal.
Key Issues
1. Whether the petitioner is liable to pay GST on the value of broken bran and husk retained as by-products in the course of milling paddy for the 5th respondent, under the CGST/Andhra Pradesh SGST Act? 2. Whether the 5th respondent should be directed to pay GST at 5% on the value of Custom Milled Rice charges of Rs. 15/- per quintal? The petitioner contended that they are not liable to pay GST on the by-products. The revenue's contentions were not explicitly recorded in the judgment. The Court noted that the issue was squarely covered by a previous order of a Division Bench.
Sections Cited
CGST/Andhra Pradesh SGST Act
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HON’BLE SRI JUSTICE C. PRAVEEN KUMAR & HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO
W.P. No. 25586 of 2020
O R D E R:- (Per Hon’ble Sri Justice C.Praveen Kumar)
This writ petition is filed for the following substantive relief: “….to issue a writ of Certiorari quashing the order of the 2nd respondent in Order No.ZH370820OD83329, dated 17.08.2020, confirming the orders passed by the 1st respondent dated 05.01.2019 passed for the tax period from July, 2017 to June, 2018 under the CGST/Andhra Pradesh SGST Act and declare that the petitioner is not liable to pay tax on the value of the broken bran and husk which are allowed to be retained, as by-products in the course of milling of the paddy for the 5th respondent and further direct the 5th respondent to pay GST @ 5% on the value of the Custom Milled Rice charges of Rs.15/- per quintal.”
Heard the learned counsel for both the parties and perused the material placed on record.
It is brought to the notice of this Court that the issued involved in this case is squarely covered by an order dated 20.11.2020 passed by a Division Bench of this Court in W.P.No.45971 of 2018 wh
The judgment continues below.
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