M/S. Sri Swamy Ayyappa Modern Rice Mill vs. Assistant Commissioner Of State Tax
Held
The Court allowed the writ petition, stating that the issue involved is squarely covered by a previous order dated November 20, 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 paddy. Therefore, following the precedent, the present writ petition was allowed in terms of the earlier order. The operative direction was to set aside the impugned assessment order concerning the levy of GST on the by-products. The Court did not expressly leave any issue undecided.
Facts
The petitioner filed a writ petition challenging an order dated August 20, 2020, passed by the second respondent, which confirmed an order dated January 11, 2019, passed by the first 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 impugned orders and declare that they are not liable to pay GST on the value of broken bran and husk retained as by-products during the milling of paddy for the fifth respondent. The petitioner also sought a direction for the fifth 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 fifth respondent, under the CGST/Andhra Pradesh SGST Act. Petitioner's Argument: The petitioner contended that they are not liable to pay tax on the value of broken bran and husk, which are by-products of paddy milling. They sought a declaration to this effect and a direction for the fifth respondent to pay GST on custom milled rice charges. Revenue's Argument: The judgment does not record any specific arguments made by the revenue. However, the impugned orders confirm the levy of GST on the value of by-products, implying the revenue's stance that these by-products are part of the consideration for the milling service.
Sections Cited
CGST/Andhra Pradesh SGST Act
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE C. PRAVEEN KUMAR & HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO
W.P. No. 24981 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.ZH370820OD57341, dated 20.08.2020, confirming the orders passed by the 1st respondent dated 11.01.2019 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 issue 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 whe
The judgment continues below.
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