M/S. Sri Venkata Ramana Rice And Flour 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. That previous order had set aside the assessment order impugned therein, specifically concerning the levy of GST on the value of by-products (broken rice, bran, and husk) treated as part of the consideration for milling paddy. The reasoning for allowing the present petition was that the issue involved was squarely covered by the aforementioned Division Bench order. Consequently, the rectification order passed by the 1st respondent was set aside. No costs were awarded. The Court directed the Registry to annex a copy of the order from W.P.No.45971 of 2018 to the present order.
Facts
The petitioner filed a writ petition challenging a rectification order dated 08.01.2019, passed by the 1st respondent for the period July 2017 to June 2018. This order revised an assessment order dated 27.08.2018. The petitioner contended that the rectification order was void ab initio, illegal, arbitrary, and passed without following principles of natural justice and due process, specifically by not generating it electronically in DRC-07 or DRC-08. The petitioner sought to declare that they are not liable for GST on by-products retained by the 2nd respondent-Corporation, or alternatively, that the Corporation should bear the liability.
Key Issues
1. Whether the rectification order dated 08.01.2019, revising the assessment order dated 27.08.2018 for the period July 2017 to June 2018, is void ab initio, illegal, arbitrary, and contrary to law for not being generated electronically in DRC-07 or DRC-08, thereby violating principles of natural justice and authority of law. Petitioner's Arguments: The petitioner argued that the rectification order was illegal and void as it was not generated electronically in the prescribed formats (DRC-07 or DRC-08), which is a mandatory procedural requirement. This failure, according to the petitioner, vitiated the entire order and violated principles of natural justice. The petitioner also sought a declaration that they are not liable for GST on by-products retained by the 2nd respondent-Corporation. Revenue's Arguments: The judgment does not record any specific arguments made by the revenue or the 1st respondent.
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE C. PRAVEEN KUMAR & HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO
W.P. No. 24334 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 mandamus declaring the action of the 1st respondent in passing the rectification order dated 08.01.2019 for the period July, 2017 to June, 2018 revising the assessment order dated 27.08.2018 without generating electronically in DRC- 07 or DRC-08, as void ab initio, 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 by-products 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.”
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 20.1
The judgment continues below.
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