Phalaka Sher vs. The Union Of INDIA
Facts
The petitioners, Phalaka Sher and Fateh Mohammad, filed a writ petition challenging show cause notices and assessment orders issued by the respondent GST Department. These notices demanded GST on royalty paid to the respondent-Mining Department for mining leases. The petitioners are legal heirs and a business entity involved in mining. The respondent authorities include the Union of India, the State of Rajasthan, and various GST and Mining Department officials. The dispute pertains to the taxability of royalty payments under GST. The petitioners were issued a notice dated 21.10.2022, followed by subsequent notices.
Held
The Court dismissed the writ petition, holding that the issue concerning the imposition of GST on royalty paid to the Mining Department for mining leases had already been decided by this Court in previous judgments. Specifically, the Court referred to its decisions in D.B. Civil Writ Petition No.8109/2022 (Sudershan Lal Gupta vs. Union of India & Ors., decided on 27.09.2022) and D.B. Civil Writ Petition No.5678/2022 (Shree Basant Bhandar Int Udyog vs. UOI & Ors., decided on 29.09.2022). In those cases, the Division Bench had held that the action of the respondents in imposing GST on royalty was not liable to be interfered with. The ratio decidendi is that such demands are in line with established judicial precedent of the High Court. The operative direction was to dismiss the writ petition in terms of the aforementioned judgments. However, the petitioners were granted liberty to approach the Assistant Commissioner in response to the notice dated 21.10.2022 and subsequent notices.
Key Issues
1. Whether the imposition of GST on royalty paid to the Mining Department for mining leases is liable to be interfered with by this Court? (Question of law) The petitioners' counsel did not dispute that the issue regarding the demand of GST on royalty paid to the Mining Department for mining leases had already been decided by this Court in previous judgments. The respondents, through learned AAG, submitted that the issue involved in this writ petition has already been decided by this Court vide order dated 29.9.2022 in DB Civil Writ Petition No.5678/2022 (Shree Basant Bhandar Int Udyog vs. UOI & Ors.) and other connected writ petitions, relying on a judgment in DB Civil Writ Petition No.8109/2022 (Sudershan Lal Gupta vs. Union of India & Ors., decided on 27.09.2022). It was argued that in Sudershan Lal Gupta’s case, the Division Bench held that the action of the respondents with regard to imposition of GST on royalty is not liable to be interfered with.
Sections Cited
None explicitly mentioned as discussed in detail, but the context implies discussions related to GST applicability on royalty payments.
AI-generated summary — verify with the full judgment below
[2023/RJJD/010170] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 4708/2023
Phalaka Sher S/o Manjurashah, Aged About 52 Years, Legal Heir Of Manjurshah Ward No.3, 19 Pbn-A, Pilibanga, Hanumangarh - 335803
Fateh Mohammad S/o Nurashah, Aged About 49 Years, C/o M/s Khwaja Ent Udhyog Gstn 08Bpspm4358D1Zi Chak 19 Pbn - B, Dingwala, Pilibanga, Hanumangarh - 335803 ----Petitioners Versus
The Union Of India, Through Secretary, Finance Department, New Delhi
The State Of Rajasthan, Through Finance Secretary, Government Of Rajasthan, Secretariat, Jaipur
The Chief Commissioner, State Goods And Service Tax, Jaipur
The Chief Commissioner, Central Goods And Services Tax, New Delhi.
The State Of Rajasthan, Through Secretary, Rajasthan Mining And Land Department, Jaipur
The Assistant Commissioner, State Tax, Ward - Iii, Circle - B, Hanumangarh ----Respondents For Petitioner(s) : Mr. Abhay Singhla For Respondent(s) : HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE MR. JUSTICE PRAVEER BHATNAGAR Order 17/04/2023 The present writ petition has been filed by the petitioners challenging the show cause notice/assessment orders issued by the res
The judgment continues below.
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