M/S.Tirumnala Mini Modem Rice Mill vs. The Assistant Commissioner (State Taxes)-Ii
Held
The Court allowed the writ petition, holding that the issue was squarely covered by a previous order dated November 20, 2020, passed by a Division Bench of the same High Court in W.P.No.45971 of 2018. In that prior case, the assessment order was set aside insofar as it related to 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 was that the prior order had already addressed and resolved this specific issue. Consequently, the present writ petition was allowed in terms of the aforementioned Division Bench order. The Court directed the registry to annex a copy of the previous order. No costs were awarded.
Facts
The petitioner filed a writ petition challenging a rectification order dated January 12, 2019, passed by the first respondent, which revised an assessment order dated August 27, 2018. The assessment order pertained to the tax period of July 2017 to June 2018. The petitioner sought to declare the rectification order illegal, arbitrary, and without jurisdiction, and to declare that they are not liable for GST on by-products retained by the second respondent-Corporation. Alternatively, the petitioner sought to direct the second respondent to bear the liability if it was found payable. The Court was informed that the issue was covered by a previous Division Bench order.
Key Issues
1. Whether the rectification order dated January 12, 2019, passed by the first respondent, revising the assessment order dated August 27, 2018, for the period July 2017 to June 2018, is illegal, arbitrary, contrary to law, in violation of principles of natural justice, and without authority or jurisdiction. Petitioner's arguments: The petitioner contended that the rectification order was illegal and arbitrary, violating principles of natural justice and lacking legal authority. They sought to be absolved of GST liability on by-products retained by the second respondent or to have the second respondent bear the liability. Revenue's arguments: The judgment does not record any specific arguments made by the revenue or the first respondent. However, the context implies that the revenue sought to levy GST on the by-products.
Sections Cited
None explicitly mentioned in the provided text, other than general reference to GST and assessment/rectification orders.
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HON’BLE SRI JUSTICE C. PRAVEEN KUMAR & HON’BLE SRI JUSTICE B. KRISHNA MOHAN
W.P. No. 23674 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 setting the rectification order of the 1st respondent dated 12.01.2019 for the period July 2017 to June, 2018 revising the assessment order dated 27.08.2018, 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 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 issued involved in this case is squarely covered by an order dated 20.11.2020 passed by a Division Bench of this Court in W.P.No.45971 of 2018 wherein the assessment orde
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