A C R D Rengarajan vs. The Assistant Commissioner (St)

Facts

The petitioner, A.C.R.D.Rengarajan, filed a writ petition challenging an order dated 03.03.2026 passed by the Assistant Commissioner (ST), Virudhunagar-II Assessment Circle. The petitioner had not obtained GST registration and had not paid GST on seigniorage fee/royalty for quarrying and transporting mines and minerals under the Reverse Charge Mechanism (RCM). The petitioner had also not made any contributions to the District Mineral Foundation Trust (DMFT). The impugned order was passed under the provisions of the respective GST Enactments. The petitioner sought to quash the order as illegal, without jurisdiction, and in violation of the Principles of Natural Justice.

Held

The Court disposed of the Writ Petition at the admission stage with the consent of both parties. The Court noted that the petitioner had not obtained GST registration and had not paid GST on seigniorage fee/royalty for quarrying and transporting mines and minerals under the Reverse Charge Mechanism, nor had they made contributions to the DMFT. The Court found the facts of the present case to be almost identical to those in the case of S.Pichandhi (supra). In that case, the Court had directed the proceedings to be kept in abeyance, awaiting the decision of the Hon'ble Supreme Court on the dispute relating to the levy of GST on seigniorage fee/royalty. The Court held that the order in S.Pichandhi would hold good for the present writ petition as well. Accordingly, the Writ Petition was disposed of on the same terms as the cited case, with no costs. The operative direction was to keep proceedings in abeyance and await the Supreme Court's decision.

Key Issues

1. Whether the impugned order dated 03.03.2026 passed by the Assistant Commissioner (ST) is illegal, without jurisdiction, and in gross violation of the Principles of Natural Justice? The Petitioner argued that the impugned order should be quashed on grounds of illegality, lack of jurisdiction, and violation of natural justice. The Petitioner's counsel relied on a previous order of the same High Court in S.Pichandhi, Proprietor of Sri Murugan Ready Mix Concrete and Blue Metal Industries, Vellore Vs. The Deputy State Tax Officer, Vellore Rural Assessment Circle, Vellore, in W.P.Nos.35883 and 35889 of 2025 dated 25.09.2025. This precedent involved a similar dispute regarding the levy of GST on seigniorage fee/royalty for quarrying and transporting minerals, which was pending before the Hon'ble Supreme Court. The Respondent (Revenue) did not record any specific arguments in the judgment, but their counsel appeared and consented to the disposal of the writ petition at the admission stage.