Shree Gajanan Industries Vs Assistant Commissioner (Central Tax) (Telangana High Court)
Telangana High Court Directs GST Assessee to Avail Statutory Appeal Against Section 74 Demand on Rice Milling By-Products
The Telangana High Court reiterated that disputes involving taxability and classification issues under the GST regime should ordinarily be adjudicated by the statutory appellate authorities. While the petitioner relied on a favorable High Court precedent concerning the taxability of rice milling by-products, the Court declined to examine the merits and permitted the taxpayer to pursue the appellate remedy under Section 107 of the GST Act.
Introduction
In Shree Gajanan Industries vs Assistant Commissioner (Central Tax) & Others, the Telangana High Court dealt with a challenge to an Order-in-Original passed under Section 74 of the Central Goods and Services Tax Act, 2017.
The dispute centered around the levy of GST, interest, and penalty on the value of broken rice, rice bran, and rice husk generated during the milling of paddy. The petitioner contended that the issue was already covered by judicial precedent and that the assessing authority had failed to properly apply the law.
However, during the hearing, the petitioner chose to pursue the statutory appellate remedy, prompting the Court to dispose of the writ petition accordingly.
