GST on Broken Rice, Bran, and Husk Exempted in Custom Milling; Tax Applicable Only if Statutorily Mandated.

The HC of Andhra Pradesh set aside an assessment order imposing GST on broken rice, bran, and husk obtained through custom milling of paddy. The Court aligned its decision with a prior ruling on a similar matter, determining that these by-products were not subject to GST under the challenged order. However, it clarified that the petitioner must pay tax if these by-products are statutorily taxable. The judgment closed any pending miscellaneous applications and did not award costs.

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Issues:
Challenge to assessment order levying GST on broken rice, bran, and husk obtained through custom milling of paddy.

Analysis:
The High Court of Andhra Pradesh heard a writ petition challenging an assessment order passed by the 1st respondent, which imposed GST on the value of broken rice, bran, and husk obtained through custom milling of paddy. The petitioner was represented by learned counsel, while the Government Pleader for Commercial Tax represented the respondents. During the hearing, the petitioner's counsel pointed out that the subject matter was similar to a previous order of the Court in another case. The Government Pleader did not dispute this fact.

In line with the previous order and the reasons stated therein, the High Court allowed the writ petition. The assessment order levying GST on the by-products (broken rice, bran, and husk) was set aside. However, the Court clarified that the petitioner would be liable to pay tax on the sale of these by-products if they are statutorily taxable. The judgment also mentioned that any pending miscellaneous applications would stand closed, and no costs were awarded in this matter.

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