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). This 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 2022-2023. 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 case is almost identical to a previous case, 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, decided on 25.09.2025. In that case, due to the pendency of the issue before the Hon'ble Supreme Court, the Court had directed the respondent to keep all proceedings in abeyance and await the Supreme Court's decision before proceeding in accordance with the law. The Court also noted that in the cited case, the petitioner was directed to deposit 10% of the disputed tax as security. Following the precedent set in the similar case, the present Writ Petition was disposed of on the same terms. The operative direction was to keep all proceedings in abeyance and await the outcome of the Hon'ble 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 is illegal, in light of the pending dispute before the Hon'ble Supreme Court regarding the levy of GST on Seigniorage fee/Royalty for quarrying mines and minerals. Petitioner's contention: The petitioner argued that the issue of levying GST on Seigniorage fee/Royalty paid for quarrying and transporting minerals is currently pending before the Hon'ble Supreme Court. Therefore, proceedings should be kept in abeyance. Revenue's contention: The judgment does not record any specific arguments made by the Revenue or the State respondents.
Sections Cited
Section 63, Rule 100(2)
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT Dated: 20.04.2026 CORAM THE HONOURABLE MR JUSTICE D.BHARATHA CHAKRAVARTHY and W.M.P(MD)No.8616 of 2026 A Narayana Perumalsamy ... Petitioner – Vs. - 1.The Commissioner / Additional Chief Secretary, Commercial Tax Department, Ezhilagam, Chepauk, Chennai. 2.The Assistant Commissioner (St)-1 Commercial Taxes Building, N.G.O.Colony, Satchiapuram, Sivakasi-626123 3.The Deputy State Tax Officer-2, Sivakasi-1 Assessment Circle Office of the Assistant Commissioner (St)-1 Commercial Taxes Building, N.G.O.Colony, Satchiapuram, Sivakasi-626123. ... Respondents Prayer :Writ Petition is filed under Article 226 of the Constitution of India, praying this Court Writ Petition, filed under Article 226 of the Constitution of India, praying this court to issue a Writ of Certiorari calling for the records relating to the impugned order of the 3rd Respondent dated 25.02.2026 in Reference No.332500004037TMP/2022-23 levying GST, 1 https://www.mhc.tn.gov.in/judis interest and penalty on the Seigniorage fee and DMFT paid for quarrying and transpor
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