M/S Sri Bongapolamma Modern Rice Mill vs. Assistant Commissioner Of Sate Tax
Held
The Court allowed the writ petition, stating that the issue involved is squarely covered by a previous order dated 20.11.2020 passed by a Division Bench of the same High Court 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 like broken rice, bran, and husk, treating them as part of the consideration paid for milling. The reasoning was that these by-products should not be considered part of the consideration for milling. The present writ petition was allowed in terms of that earlier order. The Court did not make any specific findings or reasoning on the second issue regarding the GST on Custom Milled Rice charges, as the petition was disposed of based on the precedent.
Facts
The petitioner filed a writ petition challenging an order dated 17.08.2020 passed by the 2nd respondent, which confirmed an order dated 05.01.2019 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 these orders and declare that they are not liable to pay GST on broken bran and husk retained as by-products during paddy milling 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. The petitioner contended that these are by-products allowed to be retained and not part of the consideration for milling services. The revenue's contention is not explicitly recorded in the judgment. 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 argued for this specific GST rate and value. The revenue's stance on this issue is not detailed in the judgment.
Sections Cited
CGST Act, 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. 25590 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.ZH370820OD10927, 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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