M/S Shri Bherunath Mines PVT. LTD. vs. Union Of INDIA

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CW/4317/2023HC RajasthanGSTCNR RJHC01019828202304 May 2023Bench: VIJAY BISHNOI,YOGENDRA KUMAR PUROHIT2 pages
AI SummaryDismissed

Facts

M/s Shri Bherunath Mines Pvt. Ltd. (the petitioner) filed a writ petition challenging show cause notices and assessment orders issued by the GST Department. These notices raised a demand for GST on royalty paid to the Mining Department for mining leases. The respondents, including the Union of India and the Superintendent of CGST, were arrayed. The petitioner's counsel did not dispute that the issue of demanding GST on royalty paid for mining leases had been previously decided by the Rajasthan High Court in connected writ petitions, specifically citing the judgments in DB Civil Writ Petition No. 5678/2022 (Shree Basant Bhandar Int Udyog vs. UOI & Ors.) and DB Civil Writ Petition No. 8109/2022 (Sudershan Lal Gupta vs. Union of India & Ors.).

Held

The Court dismissed the writ petition. The decision was based on the reasoning that the issue concerning the demand of GST on royalty paid to the Mining Department for mining leases had already been conclusively decided by this Court in prior judgments, namely Sudershan Lal Gupta's case and Shree Basant Bhandar Int Udyog's case. In Sudershan Lal Gupta's case, the Division Bench had held that the imposition of GST on royalty by the respondents was not subject to interference. Therefore, following the precedent set by these earlier decisions, the present writ petition was dismissed. No specific amount in dispute was mentioned in the judgment. No issues were expressly left undecided.

Key Issues

1. Whether the demand of GST on royalty paid to the Mining Department towards a mining lease is liable to be interfered with by this Court? The petitioner's side did not dispute the fact that the issue had already been decided by the Court. The respondents, through learned AAG, argued that the issue involved in the present writ petition has already been decided by this Court in previous judgments, specifically in Sudershan Lal Gupta's case and Shree Basant Bhandar Int Udyog's case. They contended that in Sudershan Lal Gupta's case, the Division Bench had held that the action of the respondents with regard to the imposition of GST on royalty is not liable to be interfered with.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
[2023/RJJD/013438] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 4317/2023 M/s Shri Bherunath Mines Pvt. Ltd., Having Its Principal Place Of Business At Sardulkhera, Rajsamand, Rajasthan, 313324, Through Its Director Devi Singh Rajput S/o Sardar Singh Rajput, Aged About 56 Years, R/o Sardulkhera Post Boraj, Teh And District Rajsamand, Rajasthan. ----Petitioner Versus 1. Union Of India, Through Secretary Finance, Ministry Of Finance, North Block New Delhi - 110001. 2. Superintendent, Cgst Range-Xvi, Kankroli, Opp. Rk Hospital, Housing Board Colony, Kankroli, Rajsamand - 313342 3. Central Board Of Indirect Taxes And Customs, Through Its Chairman, North Block, Central Secretariat, New Delhi - 110001 ----Respondents For Petitioner(s) : Mr. Sachin Saraswat For Respondent(s) : HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE MR. JUSTICE YOGENDRA KUMAR PUROHIT

Order 04/05/2023 The present writ petition has been filed by the petitioner challenging the show cause notice/assessment orders issued by the GST Department raising demand of GST on royalty paid to the Mining Department towards mining lease. Mr. Sandeep Shah, learned AAG has submitted that the issue involved in this writ petition has already been decided by this Court vide order dated 29.9.2022 passed in DB Civil Writ Petition No.5678/2022 (Shree Basant Bhandar Int Udyog vs. UOI & Ors.)

[2023/RJJD/013438] (2 of 2) [CW-4317/2023] and other connected writ petitions, while relying on a judgment passed by this Court in DB Civil Writ Petition No.8109/2022 (Sudershan Lal Gupta vs. Union of India & Ors., decided on 27.09.2022). It is argued that in Sudershan Lal Gupta’s case (supra), the Division Bench of this Court has held that action of the respondents with regard to imposition of GST on royalty is not liable to be interfered with. Learned counsel for the petitioner is not in position to dispute the fact that the issue regarding demand of GST on royalty paid to the Mining Department towards mining lease has already been decided by this Court in Sudershan Lal Gupta’s case (supra) and Shree Basant Bhandar Int Udyog’s case (supra). In view of the above, this writ petition is dismissed in terms of the judgments passed in Sudershan Lal Gupta’s case (supra) and Shree Basant Bhandar Int Udyog’s case (supra). (YOGENDRA KUMAR PUROHIT),J (VIJAY BISHNOI),J 4-AjaySingh/-

Reproduced from the public record of the Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.