Shree Gajanan Industries Vs Assistant Commissioner (Central Tax) (Telangana High Court)
Telangana High Court Directs GST Assessee to Pursue Appeal Against Section 74 Demand on Rice Milling By-Products for FY 2021-22
The Telangana High Court reiterated that disputes concerning GST liability on rice milling by-products such as broken rice, bran, and husk should ordinarily be adjudicated through the statutory appellate mechanism. While the petitioner relied upon an Andhra Pradesh High Court ruling in its favor, the Court refrained from examining the merits and granted liberty to pursue an appeal under Section 107 of the GST Act.
Introduction
In Shree Gajanan Industries vs Assistant Commissioner (Central Tax) & Others, the Telangana High Court considered a challenge to an Order-in-Original passed under Section 74 of the Central Goods and Services Tax Act, 2017.
The dispute related to GST, interest, and penalty levied on the value of broken rice, rice bran, and rice husk generated during the milling of paddy for the financial year 2021-22. The petitioner argued that the issue was already settled by judicial precedent and that the assessing authority had wrongly ignored the applicable law.
However, during the hearing, the petitioner sought liberty to avail the statutory appellate remedy, leading the Court to dispose of the writ petition accordingly.
