Daulat Singh And Sons vs. Union Of INDIA
Held
The Court held that it was not inclined to take a different view from that taken by a Coordinate Bench of the same High Court. Despite the petitioner's argument that the previous judgment in Sudarshan Lal Gupta (Supra) had misinterpreted the Supreme Court's decision in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha, and acknowledging that the issue of GST on royalty is pending before a larger Bench of the Supreme Court, the Court found no merit in the present writ petition. The Court's reasoning was based on the principle of following the precedent set by a Coordinate Bench of the same High Court. The Court did not provide any specific operative directions beyond dismissing the petition.
Facts
The petitioner, Daulat Singh And Sons, a partnership firm, filed a writ petition challenging orders and notices issued by the respondent Department demanding Goods and Services Tax (GST) on royalty collected by the petitioner. This challenge was made despite a previous decision by a Division Bench of the Rajasthan High Court at Jaipur in the case of Sudarshan Lal Gupta vs. Union of India & Ors. (D.B. Civil Writ Petition No.8109/2022) dated 27.09.2022, which had repelled an identical challenge to the GST demand on royalty. The petitioner argued that the Jaipur Bench's decision did not correctly interpret a Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha. The issue of GST on royalty is also pending before a nine-judge Bench of the Supreme Court in Mineral Area Development Authority etc. & Ors. vs. M/s. Steel Authority of India & Ors.
Key Issues
1. Whether the Rajasthan High Court, Jodhpur Bench, is bound by the decision of a Coordinate Bench at Jaipur in Sudarshan Lal Gupta vs. Union of India & Ors. (D.B. Civil Writ Petition No.8109/2022) which held that GST is leviable on royalty, despite the petitioner's contention that this decision failed to correctly interpret the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha. Petitioner's Argument: The petitioner argued that the Division Bench in Sudarshan Lal Gupta (Supra) misinterpreted the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha, and therefore, their writ petition should be accepted. Respondents' Argument: The judgment does not record any specific arguments made by the respondents.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 14526/2022 Daulat Singh And Sons, A Partnership Firm Through Its Partner Ranjeet Singh S/o Shri Daulat Singh Age 46 Years, R/o Ward No. 22 Near Kalka Mata Temple Badopal Road, Suratgarh District Sri Ganganagar. ----Petitioner Versus
Union Of India, Through Secretary Finance Department, New Delhi.
The State Of Rajasthan, Through Secretary Finance Department (Tax Division), Jaipur.
The State Of Rajasthan, Through Secretary Rajasthan Mining And Land Department, Jaipur.
Superintendent (Judicial Decision), Central Goods And Services Tax Assistant Commissioner Office, Sukhadia Nagar Sri Ganganagar Rajasthan. ----Respondents For Petitioner(s) : Mr. Vijay Kumar Aggarwal For Respondent(s) : -- HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR Order 13/10/2022 The petitioner, through this writ petition, has laid challenge to the impugned orders/ notice issued by the respondent Department demanding GST on the royalty collected by the petitioner. In a bunch of writ petitions led by D.B. Civil Writ Petition No.8109/2022 (Sudarshan Lal Gupta vs. Union of India & Ors.) and connec
The judgment continues below.
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