A Narayana Perumalsamy vs. The Commissioner / Additional Chief Secretary

Facts

The petitioner, A Narayana Perumalsamy, filed a writ petition challenging an order dated 25.02.2026 passed by the Deputy State Tax Officer-2 (3rd Respondent). The impugned order levied GST, interest, and penalty on seigniorage fee and DMFT paid for quarrying and transporting rough stone and gravel from a patta lease quarry for the tax period 2021-2022. The petitioner had not obtained GST registration and had not paid GST on seigniorage fee/royalty under the Reverse Charge Mechanism (RCM), nor had they made contributions to the District Mineral Foundation Trust (DMFT). The impugned order was issued under Section 63 of the GST enactments read with Rule 100(2) of the GST Rules.

Held

The Court held that the present writ petition is identical in facts to the case of 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. In that case, the Court had directed the respondent to keep all proceedings in abeyance and await the decision of the Hon'ble Supreme Court on the dispute relating to the levy of GST on seigniorage fee/royalty paid for quarrying mines and minerals. The Court found that the aforesaid order would hold good for the present writ petition as well. Consequently, 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 pending the Supreme Court's decision.

Key Issues

1. Whether the impugned order levying GST, interest, and penalty on seigniorage fee and DMFT paid for quarrying and transporting rough stone and gravel for the tax period 2021-2022 is illegal and liable to be quashed? Petitioner's contention: The petitioner argued that the issue of levy of GST on seigniorage fee/royalty paid for quarrying and transporting minerals is pending before the Hon'ble Supreme Court. They 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, wherein proceedings were kept in abeyance pending the Supreme Court's decision. Revenue's contention: The judgment does not record any specific arguments made by the revenue or state respondents.