M/S. Sri Ramakrishna Modem Rice Mill vs. The Assistant Commissioner (State Taxes)
Held
The Court allowed the writ petition in terms of a previous order dated 20.11.2020 passed by a Division Bench in W.P.No.45971 of 2018. The operative portion of that prior order, which this Court followed, set aside the impugned assessment order in so far 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 to the petitioner for milling of paddy. The reasoning for the prior order is not detailed in this judgment, but the principle established in that case was applied. The Court directed that a copy of the order in W.P.No.45971 of 2018 be attached to this order. No costs were awarded.
Facts
The petitioner filed a writ petition challenging an order dated 19.09.2019 passed by the 1st Respondent (authority not specified, but implied to be a GST authority) for the period July 2017 to November 2018. The petitioner sought to set aside the order, declaring that they are not liable to pay GST on custom milling charges received from the 2nd Respondent Corporation. Alternatively, they sought a direction for the 2nd Respondent to bear the liability if it was found payable. The petitioner argued the order was illegal, arbitrary, contrary to law, and in violation of natural justice. The petition was filed under Article 226 of the Constitution of India.
Key Issues
1. Whether the order dated 19.09.2019 passed by the 1st Respondent, levying GST on custom milling charges received by the petitioner from the 2nd Respondent Corporation for the period July 2017 to November 2018, is illegal, arbitrary, contrary to law, and in violation of principles of natural justice, and thus liable to be set aside. Petitioner's contention: The petitioner argued that the impugned order is illegal, arbitrary, contrary to law, and passed without jurisdiction, violating principles of natural justice. They sought to be declared not liable for GST on custom milling charges or, in the alternative, for the 2nd Respondent to bear the liability. Revenue's contention: The judgment records that learned counsel on both sides submitted that the issue involved is squarely covered by a previous order of a Division Bench of the same High Court in W.P.No.45971 of 2018. No specific arguments for the revenue were detailed beyond this submission.
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.18914 OF 2019
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, setting aside the order of the 1st Respondent dated 19.9.2019 for the period July, 2017 to November, 2018 (Central GST), 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 value of custom milling charges received from 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….”
Heard Sri K.Srinivasa Rao, learned counsel for the petitioner, learned Government Pleader for Commercial Taxes appearing for respondent Nos.1 and 4, Sri P.Hemachandra, learned Standing Counsel appearing for respondent Nos.2
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