Encasa Mines And Minerals Private Limited vs. State Of Rajasthan Through The Secretary
Held
The Court disposed of the writ petition. It took note of the order passed by the Principal Seat at Jodhpur in SBCWP No. 5354/2018 and the order of a coordinate bench in SBCWP No. 11849/2018. Crucially, the Court considered the statement made by the counsel for the respondents that no GST was being charged on the excess royalty. Based on this submission and the prior judicial pronouncements, the Court found no further grounds to proceed with the challenge. The operative direction was to dispose of the writ petition.
Facts
The petitioner, Encasa Mines And Minerals Private Limited, challenged the charging of GST on royalty imposed upon it. The petitioner relied on a previous decision by the Principal Seat at Jodhpur in SBCWP No. 5354/2018, which had quashed and set aside a State Government order dated 08.11.2017 concerning a similar controversy. The respondents, representing the State of Rajasthan and the Union of India, submitted that a coordinate bench of the High Court had previously declared similar writ petitions infructuous in SBCWP No. 11849/2018. This was due to a subsequent notification dated 26.07.2018 issued by the State Government, which exempted excess royalty by providing a 'Nil' rate. The respondents also stated that no GST was being charged on excess royalty.
Key Issues
1. Whether the petitioner is liable to pay GST on the royalty imposed upon it, considering the prior judgment of the Principal Seat at Jodhpur in SBCWP No. 5354/2018 which quashed a similar State Government order. Petitioner's contention: The petitioner argued that the charging of GST on royalty was illegal and relied on the precedent set by the Principal Seat at Jodhpur in SBCWP No. 5354/2018, where a similar order was set aside. Respondents' contention: The respondents contended that the issue had become infructuous due to a subsequent notification dated 26.07.2018 issued by the State Government, which exempted excess royalty by providing a 'Nil' rate. They further stated that no GST was currently being charged on excess royalty.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR S.B. Civil Writs No. 16059/2018 Encasa Mines And Minerals Private Limited, Head Office 802, Royal Chgs, Plot No. 23, Sector 43, Gurugram-122001 Through Its Jagwant Singh S/o Sh. Padam Singh R/o 169, Sector 9A, Gurugram (Haryana) ----Petitioner Versus
State Of Rajasthan Through The Secretary, Mines And Geology Department, Government Of Rajasthan, Secretariat, Jaipur
The Secretary, Department Of Finance, Government Of Rajasthan, Secretariat, Jaipur
The Director, Mines And Geology Department, Udaipur, Rajasthan.
Mining Engineer, Dholpur, Rajasthan.
Union Of India, Through Its Secretary, Ministry Of Finance, Nirman Bhawan, New Delhi.
The Under Secretary (St-Ii), Ministry Of Finance, Department Of Revenue, State Tax Division, New Delhi. ----Respondents For Petitioner(s) : Mr. Vimal Chand Choudhary, Adv. For Respondent(s) : Mr. Nikhil Simlote, Adv. HON'BLE MR. JUSTICE ASHOK KUMAR GAUR Order 16/11/2018 The instant petition has been filed by the petitioner challenging the charging of GST on the royalty imposed upon the petitioner. Mr. Vimal Chand Choudhary, counsel for the petitioner submits that similar co
The judgment continues below.
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