M/S. Sri Ganesh Srinivasa Traders vs. The Assistant Commissioner
Held
The Court allowed the Writ Petition, stating that the issue involved was squarely covered by a previous order dated 20.11.2020 passed by a Division Bench of the same High Court in W.P.No.45971 of 2018. The operative portion of that prior order, which was attached to this judgment, 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 for milling paddy. Consequently, this Writ Petition was also allowed in terms of the said prior order. No costs were awarded. The Court did not expressly leave any issue undecided.
Facts
The petitioner filed a Writ Petition challenging an order dated 24.09.2019 passed by the 1st Respondent (Central GST authority) for the period July 2017 to November 2018. The petitioner sought to set aside this order, declaring they were 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 24.09.2019 passed by the 1st Respondent, levying GST on the value of custom milling charges received by the petitioner, is illegal, arbitrary, contrary to law, and in violation of principles of natural justice, as contended by the petitioner. Petitioner's Contention: The petitioner argued that the order was illegal, arbitrary, contrary to law, and in gross violation of principles of natural justice and without authority of law and jurisdiction. They sought to set aside the order and declare that they are not liable to GST on custom milling charges, or alternatively, that the 2nd Respondent should bear the liability. Revenue's Contention: The judgment records that learned counsel on both sides submitted that the issue involved in this writ petition 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 were recorded for the revenue beyond this submission.
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.19388 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 24.9.2019 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 a
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Andhra Pradesh High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.