M/S Baba Ramdev Chemical And Mineral vs. Union Of INDIA

Facts

The petitioner, M/s Baba Ramdev Chemical and Mineral, a partnership firm, filed a writ petition challenging show cause notices and assessment orders issued by the respondent GST Department. These notices raised a demand for GST on royalty paid to the respondent Mining Department for a mining lease. The petitioner is represented by Mr. V.K. Aggarwal and Mr. Dalpat Singh Solanki. The respondents include the Union of India, the State of Rajasthan (Finance Department and Mining and Land Department), and the Superintendent Central Goods and Services Tax, Jodhpur. The respondents are represented by Mr. Sandeep Shah, Sr. Advocate/AAG, assisted by Mr. Abhimanyu Singh Rathore, Mr. Rajvendra Saraswat, and Mr. Sandeep Bhandawat.

Held

The Court held that the writ petition is dismissed. This decision is based on the reasoning that the issue concerning the demand of GST on royalty paid for a mining lease has already been decided by this Court in previous judgments. Specifically, the Court referred to its own orders in Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and Sudershan Lal Gupta Vs. Union of India & Ors. In the latter case, the Division Bench had previously held that the imposition of GST on royalty is not liable to be interfered with. The petitioner's counsel could not dispute this established precedent. Consequently, the Court found no grounds to deviate from its prior rulings and dismissed the present petition in terms of those earlier orders. The stay petition filed by the petitioner was also dismissed.

Key Issues

1. Whether the imposition of GST on royalty paid for a mining lease is liable to be interfered with by this Court? (Question of law) The petitioner argued that the GST Department's action of demanding GST on royalty paid for a mining lease was under challenge. The petitioner's counsel was unable to dispute the fact that this specific issue had already been decided by the High Court. The respondents, through their counsel Mr. Sandeep Shah, argued that the issue involved in this writ petition has already been decided by this Court in previous judgments, specifically citing Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and Sudershan Lal Gupta Vs. Union of India & Ors. They contended that in Sudershan Lal Gupta’s case, the Division Bench had held that the action of respondents with regard to the imposition of GST on royalty is not liable to be interfered with.