Sri Lakshmi Ganapathi Venkateswara Modern Rice Mill vs. The Assistant Commissioner (State Taxes) Akividu Circle
Held
The Court allowed the writ petition, following a previous order passed by a Division Bench of the same High Court on November 20, 2020, in W.P.No.45971 of 2018. The previous order had set aside the impugned assessment order to the extent it levied GST on the value of by-products (broken rice, bran, and husk) by treating them as part of the consideration paid for milling paddy. The present writ petition was allowed in terms of that earlier order. The operative direction was to set aside the impugned assessment order concerning the levy of GST on the value of by-products, as in the precedent case. No costs were awarded. The issue expressly left undecided is not recorded.
Facts
The petitioner filed a writ petition challenging an order dated September 19, 2019, passed by the 1st Respondent for the period July 2017 to November 2018, concerning Central GST. The petitioner sought to set aside this order, arguing it was illegal, arbitrary, and in violation of natural justice. The core of the dispute was the petitioner's liability to pay GST on custom milling charges received from the 2nd Respondent Corporation. In the alternative, the petitioner requested the 2nd Respondent to bear the liability if it was deemed payable. The petitioner sought a declaration that they were not liable for GST on these charges.
Key Issues
1. Whether the order dated September 19, 2019, passed by the 1st Respondent for the period July 2017 to November 2018, levying GST on custom milling charges, is illegal, arbitrary, and contrary to law, in violation of principles of natural justice and without jurisdiction? Petitioner's contention: The petitioner argued that the order was illegal and arbitrary, violating principles of natural justice and exceeding the authority of the respondent. They sought to be declared not liable for GST on the custom milling charges. Revenue's contention: The judgment records that learned counsel on both sides submitted that the issue was covered by a previous order of the High Court. No specific arguments were detailed for the revenue, but their submission implies agreement with the precedent.
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.19001 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
The judgment continues below.
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