M/S. Sri Rama Mini Modern Rice Mill vs. The Assistant Commissioner
Held
The Court allowed the writ petition in terms of a previous order dated November 20, 2020, passed by a Division Bench in W.P.No.45971 of 2018. That previous order had set aside 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 of paddy. The reasoning for allowing this writ petition is based on the joint submission of learned counsel for both sides that the issue was squarely covered by the aforementioned prior judgment. Therefore, the rectification order levying GST on the by-products was implicitly set aside, and the petitioner was held not liable for GST on these by-products. No costs were awarded.
Facts
The petitioner filed a writ petition challenging a rectification order dated November 6, 2020, passed by the first respondent, which revised an assessment order dated September 14, 2018. The rectification order pertained to the period of July 2017 to March 2018. The petitioner sought to declare the action of the first respondent as illegal and arbitrary, and to set aside the rectification order. The petitioner also sought a declaration that they are not liable for GST on by-products retained by the second respondent Corporation, or alternatively, that the second respondent should bear the liability. The petitioner contended that the rectification order violated principles of natural justice and was passed without authority or jurisdiction.
Key Issues
1. Whether the action of the first respondent in passing the rectification order dated 06.11.2020, revising the assessment order dated 14.09.2018 for the period July 2017 to March 2018, is illegal, arbitrary, contrary to law, and in violation of principles of natural justice and without jurisdiction? 2. Whether the petitioner is liable to pay GST on the by-products retained by the second respondent Corporation? The petitioner argued that the rectification order was illegal, arbitrary, and passed without jurisdiction, violating principles of natural justice. The revenue's contentions are not explicitly recorded in the judgment. However, the parties jointly submitted that the issue was covered by a previous order of the High Court.
Sections Cited
None explicitly mentioned in the provided text, other than Article 226 of the Constitution of India.
AI-generated summary — verify with the full judgment below
THE HONOURABLE SRI JUSTICE C.PRAVEEN KUMAR AND THE HONOURABLE SRI JUSTICE R.RAGHUNANDAN RAO WRIT PETITION No.24634 OF 2020
ORDER:- (Per Hon’ble Sri Justice C.Praveen Kumar)
The present Writ Petition came to be filed under Article 226 of the Constitution of India seeking the following relief:- “……..to issue a Writ of Mandamus or any other appropriate Writ or order or direction, declaring the action of the 1st respondent in passing the rectification order of the 1st respondent, dated 06.11.2020 for the period July 2017 to March 2018, revising the assessment order, dated 14.09.2018 as illegal, arbitrary and contrary to law, in gross violation of principles of natural justice and without authority of law and jurisdiction, and set aside the same and consequently declare that the petitioner is not liable to GST on the byproducts retained by the 2nd respondent Corporation, or in the alternative, direct the 2nd respondent Corporation to bear the liability if it is held to be payable, and pass such other order or orders….”
Heard Sri K.Srinivasa Rao, learned counsel for the petitioner, learned Government Pleader for Commercial Taxes appearing for res
The judgment continues below.
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