Pioneer Bakers V. Union of India and Commissioner, Central, Goods and Services Tax and Central Excise and State of Odisha and Odisha Appellate Authority for Advance Ruling, Goods and Services Tax and Assistant Commissioner of GST & Central Excise Sambalpur-I Division and Superintendent, CGST & Central Excise Sambalpur-I Division

WP(C)/2220/2022

AI Insights

The case involves M/s. Pioneer Bakers, a partnership firm engaged in the bakery business, challenging the legality of an appellate order by the Odisha Appellate Authority for Advance Ruling (AAAR). The dispute centered on the classification of their services and goods under the Goods and Services Tax (GST) regime, specifically whether their operations could be classified under 'restaurant services' which attract a different GST rate compared to other classifications. The AAAR overturned the initial ruling by the Authority for Advance Ruling (AAR), which had favored the petitioner, leading to this writ petition. The High Court found that the AAAR had not followed the principles of natural justice by not allowing the petitioner to confront the adverse material used in the appellate decision.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 800454 (HC-CUTTACK)
• Appeal Type: Others
• Pronouncement Date: 25-01-2024
• Assessment Year: misc
• Other Referred Cases: Smt. Maneka Gandhi Vrs. Union of India, A.K. Kraipak Vrs. State of M.P., Biecco Lawrie Limited Vrs. State of West Bengal, Mangilal Vrs. State of M.P., Aureliano Fernandes Vrs. State of Goa, State of Odisha Vrs. Dr. (Miss) Binapani Dei, K.I. Shephard Vrs. Union of India, Deo Ispat Alloys Ltd. Vrs. Commissioner of Commercial Taxes, C. Vasantlal and Co. Vrs. Commissioner of Income-tax, Bombay City, State of Kerala Vrs. K.T. Shaduli Yusuff, Kishinchand Chellaram Vrs. Commissioner of Income-tax, Bombay City-II, Delhi Transport Corporation Vrs. D.T.C. Mazdoor Congress, Basudeo Tiwary Vrs. Sido Kanhu University, J.S. Refineries Ltd. Vrs. CST, Kalra Glue Factory Vrs. Sales-tax Tribunal, Raghubar Mandal Harihar Mandal Vrs. State of Bihar, Andaman Timber Industries Vrs. Commissioner of Central Excise
• Laws Referred To: Constitution of India, 1950, Odisha Goods and Services Tax Act, Central Goods and Services Tax Act, 2017
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: PRASANNA KUMAR PARHI; RADHEYSHYAM CHIMANKA
• Assessee Lawyers: JAGABANDHU SAHOO; KAJAL SAHOO
• Keywords: Advance ruling; Composite supply; GST tariff rate; Natural Justice; Restaurant services
• Section: 96; 30; 226; 2(30); 99; 227; 97; 104(1); 2(90)

Judgement Text

" W.P.(C) No.2220 of 2022 Page 1 of 60 ORISSA HIGH COURT : CUTTACK W.P.(C) No.2220 of 2022 In the matter of an Application under Articles 226 and 227 of the Constitution of India, 1950 *** 1. M/s. Pioneer Bakers Regn. No.GSTIN: 21AAQFP6408F1ZB At: Sahayog Nagar, P.O.: Budharaja District: Sambalpur – 768 003, (Odisha) represented through Shri Amit Singhania, Aged about 44 years, R/o.: 8kc, Mani Tribhuvan, Raghunathpur Patia, Bhubaneswar, Odisha … Petitioner -VERSUS- 1. Union of India Represented through its Secretary Ministry of Finance (Department of Revenue), North Block, New Delhi. 2. Commissioner, Central, Goods and Services Tax and Central Excise, At Rajaswa Vihar, GST Bhawan, Bhubaneswar – 751 007, Odisha. 3. State of Odisha Represented through Secretary, Department of Finance, At: Secretariat Building Sachivalaya Marg, Unit-2, Keshari Nagar, Bhubaneswar – 751 001, Odisha. 4. Odisha Appellate Authority for Advance Ruling, Goods and Services Tax Represented through its Assistant Commissioner, CGST W.P.(C) No.2220 of 2022 Page 2 of 60 Office of the Chief Commissioner At: Rajaswa Vihar, GST Bhawan Bhubaneswar – 751 007, Odisha. 5. Assistant Commissioner of GST & Central Excise Sambalpur-I Division, At: Danipali, Budharaja Sambalpur – 768 004, Odisha. 6. Superintendent, CGST & Central Excise Sambalpur-I Division, At: Danipali Budharaja, Sambalpur – 768 004 Odisha. … Opposite parties Counsel appeared for the parties: For the petitioner : Mr. Jagabandhu Sahoo, Senior Advocate, along with M/s. Kajal Sahoo, Saurav Tibrewal, Abhay Khandelwal, Pankaj Khandelwal, Advocates For the opposite party : Mr. Prasanna Kumar Parhi No.1 Deputy Solicitor General of India For the opposite party : Mr. Radheyshyam Chimanka, Nos.2 to 6 Senior Standing Counsel, GST, Central Excise & Customs P R E S E N T: THE HONOURABLE ACTING CHIEF JUSTICE DR. B.R. SARANGI AND THE HONOURABLE MR. JUSTICE MURAHARI SRI RAMAN Date of Hearing : 25.01.2024 :: Date of Judgment : 25.01.2024 W.P.(C) No.2220 of 2022 Page 3 of 60 JUDGMENT MURAHARI SRI RAMAN, J.4 THE CHALLENGE BY THE PETITIONER: The petitioner, registered partnership firm engaged in the business of bakery products, craves to question the legality and propriety of Order No.02/Odisha- AAAR/Appeal/2021-22, dated 27.07.2021 passed in Appeal bearing No.01/Odisha-AAAR/Appeal/2021-22 by the Odisha Appellate Authority for Advance Ruling (