Whether value of the broken rice, bran and husk is liable to be taken into account in determining the consideration
Section 2 of CGST Act, 2017— Consideration — The appellant department challenged High Court Order dated 20.11.2020. The respondent, a Rice Miller, prayed for quashing Assessment Order dated 29.10.2018 for the tax period July, 2017 to February, 2018 before the High Court. He submitted that the broken rice, bran and husk given to him by the 4th respondent not as consideration, but in exchange for the own rice given by the petitioner to make up the shortfall of the rice after milling. The court observed that the by-products form part of compensation but not consideration and allowed the Petition by setting aside the Assessment Order. The appellant’s counsel submitted that the value of the broken rice, bran and husk is liable to be taken into account in determining the consideration which is payable in terms of Section 2(31) of the Act and the High Court has erred in holding that in terms of clause 17 of the agreement, the consideration was only the price for milling of paddy, as fixed.
Held that:- The Hon’ble Supreme Court issued notice.
Whether value of the broken rice, bran and husk is liable to be taken into account in determining the consideration
Section 2 of CGST Act, 2017— Consideration — The appellant department challenged High Court Order dated 20.11.2020. The respondent, a Rice Miller, prayed for quashing Assessment Order dated 29.10.2018 for the tax period July, 2017 to February, 2018 before the High Court. He submitted that the broken rice, bran and husk given to him by the 4th respondent not as consideration, but in exchange for the own rice given by the petitioner to make up the shortfall of the rice after milling. The court observed that the by-products form part of compensation but not consideration and allowed the Petition by setting aside the Assessment Order. The appellant’s counsel submitted that the value of the broken rice, bran and husk is liable to be taken into account in determining the consideration which is payable in terms of Section 2(31) of the Act and the High Court has erred in holding that in terms of clause 17 of the agreement, the consideration was only the price for milling of paddy, as fixed.
Held that:- The Hon’ble Supreme Court issued notice.