Adapt Infra Private Limited vs. Principal Commissioner, Central Goods And Services Tax

CW/12405/2021HC RajasthanGSTCNR RJHC02071924202128 January 2026Bench: PUSHPENDRA SINGH BHATI,SANGEETA SHARMA5 pages

AI SummaryDismissed

Facts

The petitioners, Adapt Infra Private Limited and individuals associated with it, filed writ petitions before the Rajasthan High Court challenging actions by the Central Goods and Services Tax (CGST) and Rajasthan State Goods and Service Tax (RSGST) authorities. The core issue raised by the petitioners pertained to the leviability of GST on royalty payments. The respondents, represented by various CGST and RSGST officials, contended that the issue was squarely covered by a previous judgment of a coordinate bench of the same High Court. The petitioners attempted to distinguish their case, arguing that the broader issue of GST leviability on royalty remained open for adjudication.

Held

The Court held that the issue of leviability of GST on royalty is covered by the judgment of a coordinate bench in Sudershan Lal Gupta Contractor v. Union of India & Ors. The Court perused the cited judgment and found that all issues pertaining to the same prayer had been duly dealt with. Consequently, the Court was not persuaded to take a different view. The reasoning was based on the principle of judicial discipline and adherence to precedents set by coordinate benches. The Court dismissed the present petitions based on the prior decision. However, the petitioners were granted liberty to raise any other issues, apart from the leviability of GST on royalty, if the need arose.

Key Issues

1. Whether the issue of leviability of GST on royalty is open for adjudication by this Court, or if it is covered by previous judgments of this Court? Petitioner's Contention: The petitioner argued that the broader issue of the leviability of GST on royalty is still open and requires adjudication by the Court, attempting to distinguish the present case from prior rulings. Respondent's Contention: The respondent revenue authorities argued that the issue of leviability of GST on royalty is squarely covered by the judgment of a coordinate bench of this Court in Sudershan Lal Gupta Contractor v. Union of India & Ors. (D.B. Civil Writ Petition No. 8109/2022), decided on 27.09.2022, and other connected matters. They relied on judgments in Udaipur Chambers of Commerce and Industry & Ors. v. Union of India & Anr., M/s Mateshwari Minerals & Anr. v. Union of India & Anr., M/s Shivalik Silica v. Union of India & Ors., and Rajasthan Small Mines (Cheja Patthar) Lease Holders Association & Ors. v. State of Rajasthan & Ors.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2026:RJ-JP:3745-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 12405/2021 Adapt Infra Private Limited, Having Registered Office At 602, Apex Tower, Lal Kothi Scheme, Tonk Road Jaipur - 302015 Through Its Director Shri Gaurav Khandelwal S/o Shri Prakash Chand Khandelwal ----Petitioner Versus 1. Principal Commissioner, Central Goods And Services Tax, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur, Rajasthan-302001. 2. Joint Commissioner, Anti Evasion, Central Goods And Services Tax, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur Rajasthan-302001 3. Commissioner, Commercial Taxes Department, Rajasthan State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, C-Scheme, Jaipur. 4. Deputy Commissioner, State Tax, Anti Evasion, Zone Iii, Rajasthan State Goods And Service Tax, Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. 5. Assistant Commissioner, State Tax, Circle N, Rajasthan State Goods And Service Tax Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. ----Respondents Connected With D.B. Civil Writ Petition No. 12365/2021 Gaurav Khandelwal S/o Shri Prakash Chand Khandelwal, Resident Of 802-803, Somdutt Landmark, Coral Block, Hawa Sadak, Civil Lines, Jaipur, Rajasthan - 302006 ----Petitioner Versus 1. Principal Commissioner, Central Goods And Services Tax, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur, Rajasthan-302001. 2. Joint Commissioner, Anti Evasion, Central Goods And Services Tax, New Central Revenue Building, Statue [2026:RJ-JP:3745-DB] (2 of 5) [CW-12405/2021] Circle, C-Scheme, Jaipur Rajasthan-302001 3. Commissioner, Commercial Taxes Department, Rajasthan State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, C-Scheme, Jaipur. 4. Deputy Commissioner, State Tax, Anti Evasion, Zone Iii, Rajasthan State Goods And Service Tax, Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. 5. Assistant Commissioner, State Tax, Circle N, Rajasthan State Goods And Service Tax Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. ----Respondents D.B. Civil Writ Petition No. 14623/2021 Hari Singh Choudhary S/o Shri Gaja Nand Choudhary, Resident Of 87, Mansinghpura, Tonk Road, Durgapur, Jaipur, Rajasthan - 302018. ----Petitioner Versus 1. Principal Commissioner, Central Goods And Services Tax, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur, Rajasthan-302001. 2. Joint Commissioner, Anti Evasion, Central Goods And Services Tax, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur Rajasthan-302001 3. Commissioner, Commercial Taxes Department, Rajasthan State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, C-Scheme, Jaipur. 4. Deputy Commissioner, State Tax, Anti Evasion, Zone Iii, Rajasthan State Goods And Service Tax, Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. 5. Assistant Commissioner, State Tax, Circle N, Rajasthan State Goods And Service Tax Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. ----Respondents D.B. Civil Writ Petition No. 14625/2021 Rinkal Khandelwal W/o Gaurav Khandelwal, Resident Of 802- 803, Coral Block, Somdatt Landmark, Civil Line, Hawa Sadak, [2026:RJ-JP:3745-DB] (3 of 5) [CW-12405/2021] Jaipur, Rajasthan-302006. ----Petitioner Versus 1. Principal Commissioner, Central Goods And Services Tax, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur, Rajasthan-302001. 2. Joint Commissioner, Anti Evasion, Central Goods And Services Tax, New Central Revenue Building, Statue Circle, C-Scheme, Jaipur Rajasthan-302001 3. Commissioner, Commercial Taxes Department, Rajasthan State Goods And Service Tax, Kar Bhawan, Ambedkar Circle, C-Scheme, Jaipur. 4. Deputy Commissioner, State Tax, Anti Evasion, Zone Iii, Rajasthan State Goods And Service Tax, Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. 5. Assistant Commissioner, State Tax, Circle N, Rajasthan State Goods And Service Tax Zonal Kar Bhawan, Jhalana Doongri Institutional Area, Jaipur, Rajasthan. ----Respondents For Petitioner(s) : Mr. Ravindra Pal Singh, Adv. Mr. Ranjan Mehta, Adv. For Respondent(s) : Ms. Mahi Yadav, AAG with Ms. Harshita Verma, Adv. Mr. Rohan Mittal, Adv. Mr. Kinshuk Jain, with Mr. Parth Khandal, Adv. Mr. Sourabh Jain, Adv. Mr. Sunil Yadav, Adv. Mr. Siddharth Ranka, Adv. HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI HON'BLE MRS. JUSTICE SANGEETA SHARMA

Order 28/01/2026

[2026:RJ-JP:3745-DB] (4 of 5) [CW-12405/2021]

Learned counsel for the petitioner submits that the issue of leviability of GST on royalty is the core issue and requires adjudication by this Court.

Mr. Kinshuk Jain, learned counsel appearing for the respondent, submits that the issue stands squarely covered by the judgment rendered by a coordinate Bench of this Court in the case of Sudershan Lal Gupta Contractor v. Union of India & Ors. (D.B. Civil Writ Petition No. 8109/2022), decided on 27.09.2022, along with other connected matters. He further submits that the coordinate Bench of this Court, while deciding the matter, relied upon the judgments rendered in the cases of Udaipur Chambers of Commerce and Industry & Ors. v. Union of India & Anr. (D.B. Civil Writ Petition No. 14578/2016, decided on 26.07.2021); M/s Mateshwari Minerals & Anr. v. Union of India & Anr. (D.B. Civil Writ Petition No. 7650/2021, decided on 17.12.2021); M/s Shivalik Silica v. Union of India & Ors. (D.B. Civil Writ Petition No. 14849/2021); and Rajasthan Small Mines (Cheja Patthar) Lease Holders Association & Ors. v. State of Rajasthan & Ors. (D.B. Civil Writ Petition No. 5199/2022).

Learned counsel for the petitioner tried to distinguish this case by saying that the broader issue of leviability of GST on royalty is still open.

This Court, upon perusing the judgment rendered in the case of Sudershah Lal Gupta (supra), finds that all issues pertaining to the same prayer have been duly dealt with, and is thus not persuaded to take any other different view.

[2026:RJ-JP:3745-DB] (5 of 5) [CW-12405/2021]

In view of the decision rendered in the case of Sudershah Lal Gupta (supra), the present petitions are dismissed. However, the petitioners shall be at liberty to take up any other issue(s) other than the issue of leviability of GST on royalty, if the need arises. (SANGEETA SHARMA),J (DR. PUSHPENDRA SINGH BHATI),J Sudheer/Heena/58-61

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.