BharatTaxGST

Sri Venkata Ramalingeswara Rice And Flour Mill vs. Assistant Commissioner Of Central Tax

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WP/4221/2025HC Andhra PradeshGSTCNR APHC01006829202515 September 2026Bench: NINALA JAYASURYA,T.C.D.SEKHAR5 pages
For Petitioner: KARTHIK RAMANA PUTTAMREDDYFor Respondent: D NAGARAJA KUMARI Counsel for the, Respondents:GP FOR COMMERCIAL TAX

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Cause title — parties, addresses and appearances
APHC010068292025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) WEDNESDAY, THE 16th DAY OF SEPTEMBER 2026 PRESENT THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 4221 OF 2025 Between: 1. SRI VENKATA RAMALINGESWARA RICE AND FLOUR MILL, rep. by its Managing Partner, Mr. Gunnam Mohana Rao 24/375, Main Road, Tanuku to Attilli Road, Velpur (V), West Godavari District, AP-534 222. ...Petitioner AND 1. ASSISTANT COMMISSIONER OF CENTRAL TAX, Eluru CGST Division, Eluru. 2. Deputy Commissioner Audit of Central Tax, Guntur Audit Circle, Guntur. 3. State of Andhra Pradesh, rep. by its Principal Secretary to Government, Revenue (CT-II) Department, Secretariat, Velagapudi, Amaravathi, Guntur District. 4. Union of India, rep. by its Secretary, Ministry of Finance, Department of Revenue North Block, New Delhi-110001. 5. Andhra Pradesh State Civil Supplies Corporation, Sri Sai Towers, Ashok Nagar, Bandar Road Kanur, Eedupugallu, Vijayawada. ...Respondents 2 Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue a Writ of Mandamus or any other appropriate writ or order or direction to set aside the Order-In-Original NO.15/10/2023-24- GST (Adjn) of the 1st Respondent dated 23.12.2024 for the tax period June 2018 to March 2021 under the CGST/Andhra Pradesh SGST Act and declare that the Petitioner is not liable to pay tax on the value of the broken rice, bran and husk which are allowed to be retained as byproducts in the course of milling of the paddy for the 5th Respondent and pass IA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to grant stay of all further proceedings pursuant to Order-in-Origi nal No. 15/10/2023-24 GST (Adjn) of the 1st Respondent dated 23.12.2024 pending disposal of the Writ Petition, as otherwise the Petitioner will be put to severe loss and hardship. IA NO: 2 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased pleased to grant leave to the respondents to file the counter affidavit Counsel for the Petitioner: KARTHIK RAMANA PUTTAMREDDY Counsel for the Respondents: D NAGARAJA KUMARI Counsel for the Respondents:GP FOR COMMERCIAL TAX

The Court made the following order:

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THE HONOURABLE SRI JUSTICE NINALA JAYASURYA THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION No: 4221 OF 2025

ORDER: (per Hon’ble Sri Justice Ninala Jayasurya)

Petitioner registered under the Goods and Services Tax Act, 2017, is engaged in business of milling of paddy. On the basis of final audit report dated 27.12.2023, it is alleged that petitioner is not paying GST on custom milling charges where consideration was partly received in kind from the 5th respondent Corporation for carrying out milling of paddy into rice. Show- Cause-Notice dated 28.12.2013 was issued, for which, the petitioner submitted reply dated 27.10.2024. Thereafter, the 1st respondent passed the order impugned in the writ petition, which is under challenge on various grounds. Be that as it may.

2.

At the time of considering the matter, learned counsel for the petitioner submits that the issue involved in the present writ petition is squarely covered by a decision of the Co-ordinate Bench of this Court dated 20.11.2020 in W.P.No.45971 of 2018. 3. Smt. D. Naga Raja Kumari, learned Senior Standing Counsel for CBIC, appearing for respondent Nos.1 & 2, has not disputed the said statement. However, she submits that Department preferred an appeal, but no stay has been granted by the Hon’ble Supreme Court.

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4.

In the above said Writ Petition No.45971 of 2018, the Division Bench formulated the following point for consideration:

“12. The point for consideration is: Whether the impugned assessment order levying GST on the estimated by-products value, treating such by-products as part of the consideration for milling, is legally sustainable under the provisions of CGST/APGST Act, 2017 or not?” 5. therein, so far as it relates to the levy of GST on the value of the by-products i.e., broken rice, bran and husk, treating them as part of consideration paid to the petitioner for milling of the paddy.

6.

Having considered the submissions made and perusing the order dated 20.11.2020, the issue is covered. Therefore, the writ petition is allowed by setting aside the order dated 23.12.2024 of the 1st respondent, as prayed for.

7.

There shall be no order as to costs. Miscellaneous petitions, if any, shall stand closed. _____________________ NINALA JAYASURYA, J

_______________ T.C.D.SEKHAR, J

GVK/VS

1 (1997) SCC OnLine 1143

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33 THE HONOURABLE SRI JUSTICE NINALA JAYASURYA AND THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR

WRIT PETITION No. 4221 OF 2025

Dt. 16.09.2026

GVK

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.