M/S Mateshwari Minerals vs. Union Of INDIA
Held
The Court held that it was bound to follow the previous judgment of a Division Bench of the same High Court in the case of Udaipur Chambers of Commerce and Industry & Ors. Vs. Union of India & Anr. (DB Civil Writ Petition No.14578/2016), which had dismissed similar challenges to demands for Service Tax on royalty. The Court noted that the petitioners' counsel had brought this precedent to their attention. Despite the information that the said judgment was under challenge before the Hon'ble Apex Court and that interim orders had been passed, the Division Bench found no alternative but to follow the established precedent of their own Court. Consequently, the writ petition was dismissed on the same grounds as the earlier case.
Facts
The petitioners, M/s Mateshwari Minerals and Kshitij Kumar Choudhary, filed a writ petition before the Rajasthan High Court challenging a demand for Service Tax on royalty payable under the Rajasthan Minor Mineral Concession Rules, 2017. The petitioners' counsel brought to the Court's attention a previous judgment by a Division Bench of the same High Court in the case of Udaipur Chambers of Commerce and Industry & Ors. Vs. Union of India & Anr. (DB Civil Writ Petition No.14578/2016). In that case, similar challenges were dismissed by the Principal Seat, Jodhpur, via a judgment and order dated October 24, 2017. The petitioners' counsel also informed the Court that the Udaipur Chambers of Commerce and Industry judgment was under challenge before the Hon'ble Apex Court, with certain interim orders reportedly passed.
Key Issues
1. Whether the demand for Service Tax on royalty payable under the Rajasthan Minor Mineral Concession Rules, 2017, is legally sustainable? (Question of law). Petitioner's Contention: The petitioners sought to quash the demand for Service Tax on royalty. While not explicitly detailed in the judgment, their argument would implicitly be that such royalty is not exigible to Service Tax. They relied on the fact that the similar judgment in Udaipur Chambers of Commerce and Industry & Ors. Vs. Union of India & Anr. was under challenge before the Supreme Court, suggesting a potential for a different outcome or ongoing legal uncertainty. Respondent's Contention: The respondents, Union of India and the Directorate General of Goods and Services Tax Intelligence, did not explicitly present arguments in the provided text. However, their position would be to uphold the demand for Service Tax, likely relying on the Division Bench's previous dismissal of similar petitions.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 7650/2021
M/s Mateshwari Minerals, Through Its Partner Sh. Sunil Kulhari S/o Sh. Banwarilal, Aged About 38 Years, Having Its Registered Office At C/o Banwari Lal, Inside Charan Singh Gate, Nawalgargh Road, Sikar (Rajasthan).
Kshitij Kumar Choudhary S/o Shri Suryapal Choudhary, Aged About 34 Years, C/o Banwari Lal, Inside Charan Singh Gate, Nawalgarh Road, Sikar (Rajasthan). ----Petitioners Versus
Union Of India, Through The Secretary, Ministry Of Finance, Department Of Revenue, Government Of India, Shastri Bhawan, New Delhi.
The Directorate General Of Goods And Services Tax Intelligence, Through Additional Director General, Jaipur Zonal Unit, C-62, Sarojini Marg, C Scheme, Jaipur. ----Respondents For Petitioner(s) : Mr. Sandeep Singh Shekhawat For Respondent(s) : HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE SATISH KUMAR SHARMA Order 26/07/2021
Heard learned counsel for the petitioners.
Prayer in the writ application has been made seeking quashing of Demand of Service Tax on royalty payable under the Rajasthan Minor Mineral Concession Rules, 2017. 3. Learned counsel in
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