M/S. Vijaya Durga Rice Industries vs. The Assistant Commissioner (State Taxes)

Held

The Court allowed the Writ Petition. The decision was based on the submission made by both parties that the issue involved in the present writ petition was squarely covered by a previous order of the Division Bench of the High Court dated 20.11.2020, passed in W.P.No.45971 of 2018. The operative portion of the cited order indicated that the 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 for milling paddy, was set aside. Consequently, following the precedent established in W.P.No.45971 of 2018, the present Writ Petition was also allowed in terms of that order. No costs were awarded. The Court did not expressly leave any issue undecided; rather, it disposed of the matter based on the binding precedent.

Facts

The petitioner filed a Writ Petition seeking to set aside an order dated 18.02.2019 passed by the First Respondent for the period July 2017 to September 2018. The petitioner contended that the order was contrary to law, facts, and passed without jurisdiction. During the proceedings, both the petitioner's counsel and the counsel for the respondents (Government Pleader for Commercial Taxes and Standing Counsel for respondent No.3) submitted that the issue involved in the present writ petition was squarely covered by a previous order of the High Court dated 20.11.2020 in W.P.No.45971 of 2018. The previous order had dealt with a similar assessment order concerning the levy of GST on by-products.

Key Issues

1. Whether the assessment order dated 18.02.2019, passed by the First Respondent for the period July 2017 to September 2018, is contrary to law, facts, and without jurisdiction, as contended by the petitioner? Petitioner's Contention: The petitioner argued that the impugned order was illegal and passed without proper jurisdiction and authority. The petitioner relied on the principle that if a previous judgment of the High Court covers the exact issue, the current petition should be decided in line with that precedent. Revenue/State's Contention: The learned Government Pleader for Commercial Taxes and the learned Standing Counsel for respondent No.3 submitted that the issue in the present writ petition is squarely covered by a previous order of the Division Bench of this Court in W.P.No.45971 of 2018, dated 20.11.2020. They did not present any separate arguments against the petitioner's claim.