M/S. Sri Venkatalakshmi Modern Rice And Ground Nut Oil Mill vs. Assistant Commissioner Of State Tax
Held
The Court allowed the writ petition, stating that the issue involved 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 like 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 Court directed the registry to annex a copy of the order dated November 20, 2020, to the present order. No costs were awarded. 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 set aside the levy on by-products.
Facts
The petitioner filed a writ petition challenging an order dated August 20, 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 demand for tax on the value of broken bran and husk retained as by-products during the milling of paddy for the 5th respondent. Additionally, the petitioner requested 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, which are 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 argued that they are not liable to pay tax on the by-products. The revenue's contentions are not explicitly recorded in the judgment. The court noted that the issue was squarely covered by a previous order of a Division Bench of the same High Court.
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. 24952 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.ZH370820OD59422, dated 20.08.2020, 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 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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