M/S. Udaipur Mineral Deve.Syndicate PVT vs. State Of Rajasthan And Ors.
Held
The Court held that the controversy in the present writ petition was squarely covered by the order dated August 28, 2018, passed by a co-ordinate Bench in a bunch of writ petitions led by Ladu Lal Hiran & Ors. Vs. State of Rajasthan & Ors. (S.B. Civil Writ Petition No.5354/2018). In that previous order, the co-ordinate Bench had quashed the letter dated November 8, 2017, issued by the Finance (Tax) Department, Government of Rajasthan, which is the same letter being assailed in this petition. Therefore, following the precedent, the Court quashed the impugned letter dated November 8, 2017, qua the petitioner. Any letter issued in pursuance thereof was also deemed quashed. The Court directed that the consequences shall follow. The issue of double burden and the correct method of GST collection on royalty were implicitly addressed by quashing the offending letter.
Facts
The petitioner, M/s Udaipur Mineral Development Syndicate Private Limited, filed a writ petition challenging a letter dated November 8, 2017, issued by the Finance (Tax) Department of the Rajasthan Government. The petitioner sought to quash this letter, requesting clarification to avoid a double burden on miners, leaseholders, and end-users regarding GST collection on royalty. They also prayed for directions to the respondent authorities to present the correct position of GST collection on royalty and to follow the correct method of collection. The petitioner is a private limited company involved in mineral development.
Key Issues
1. Whether the letter no. P12(52) finance/tax/2017-III dated 8/11/2017 issued by the Finance (Tax) Department, Rajasthan Government, is liable to be quashed and set aside? Petitioner's contention: The petitioner argued that the impugned letter leads to a double burden of GST collection on royalty, affecting miners, leaseholders, and end-users. They sought a clarification and amendment in law to rectify this situation. Respondents' contention: The respondents did not record any specific arguments in the judgment. However, the court noted that the controversy was covered by a previous order of a co-ordinate bench.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR S.B. Civil Writ No. 7559/2018 M/s Udaipur Mineral Development Syndicate Private Limited, Having Its Registered Office At 4Th Floor, Golcha Trade Center, M.i. Road, Jaipur Through Its Authorized Person Mr. Parkishit Singh S/o Mohan Singh Aged About 39 Years R/o Flat No. 104, Plot No. A/21-22, Citadel, Panchsheel Colony, Ajmer Road, Jaipur. ----Petitioner Versus
State Of Rajasthan Through Secretary, Mines And Geology Department, Government Of Rajasthan, Jaipur- 302001. 2. Secretary Finance Department, Government Of Rajasthan, Jaipur
Director, Mines And Geology Department, Udaipur, Rajasthan.
Mining Engineer, Bhilwara, Rajasthan ----Respondents For Petitioner(s) : Mr. Manish Shishodia For Respondent(s) : Mr. Akshat Verma HON'BLE MR. JUSTICE SANDEEP MEHTA Order 30/10/2018 By way of this writ petition, the petitioner has approached this court with the following prayers :- “1. The letter no. P12(52) finance/tax/2017-III dated 8/11/2017 (annex.4) issued by Finance (Tax) Department, Rajasthan Government may kindly be quashed and set aside.
(2 of 2) [CW-7559/2018]
A clarification may be issued to avoid, double b
The judgment continues below.
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