M/S Prince Udyog vs. The Union Of INDIA

CW/19343/2022HC RajasthanGSTCNR RJHC01087757202227 February 2024Bench: PUSHPENDRA SINGH BHATI,MUNNURI LAXMAN3 pages

AI SummaryDismissed

Facts

The petitioner, M/s Prince Udyog, through its proprietor, filed a writ petition before the Rajasthan High Court at Jodhpur. The petition challenged actions by the GST authorities, specifically the demand of GST on royalty paid towards a mining lease. The respondents, including the Union of India and the State of Rajasthan, were represented by their respective counsel. The respondents submitted that the exact controversy had already been decided by a Division Bench of the same High Court in a previous case, Shrimati Rasal Vs. State of Rajasthan & Ors., which itself relied on earlier decisions.

Held

The Court held that the present writ petition was to be dismissed on the same terms as the previous Division Bench judgments cited by the respondents. Specifically, the Court noted that the issue regarding the demand of GST on royalty paid to the Mining Department for a mining lease had already been decided in the cases of Sudershan Lal Gupta and Shree Basant Bhandar Int Udyog. In those cases, the Division Bench had held that the imposition of GST on royalty was not liable to be interfered with. Consequently, the writ petition and the stay petition were dismissed in terms of those prior orders. No specific amount in dispute was mentioned.

Key Issues

1. Whether the imposition of GST on royalty paid for a mining lease is liable to be interfered with by the Court? (Question of law turning on the interpretation of GST provisions concerning royalty payments for mining leases). Petitioner's Argument: The judgment does not record any specific arguments made by the petitioner. However, the context implies the petitioner was challenging the GST demand on royalty. Respondents' Argument: The respondents argued that the issue had already been decided by a Division Bench of the High Court in the case of Shrimati Rasal Vs. State of Rajasthan & Ors., which relied on the decision in 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 Court had held that the action of imposing GST on royalty was not liable to be interfered with.

Sections Cited

Not Specified

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2024:RJ-JD:9880-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 19343/2022 M/s Prince Udyog, F-6, Industrial Area, Phase-I, Hanumangarh Through Its Proprietor Shri Prince Garg S/o Shri Vijay Kumar Garg. ----Petitioner Versus 1. The Union Of India, Through Secretary, Finance Department, New Delhi. 2. The State Of Rajasthan, Through Finance Secretary, Government Of Rajasthan, Secretariat, Jaipur. 3. The Chief Commissioner, State Goods And Service Tax, Jaipur. 4. The Chief Commissioner, Central Goods And Service Tax, New Delhi. 5. The State Of Rajasthan, Through Secretary, Rajasthan Mining And Land Department, Jaipur. 6. The Joint Commissioner, State Tax, Circle-B, Hanumangarh. ----Respondents For Petitioner(s) : Mr. Lakshya Singh Udawat for Mr. Abhay Singhla For Respondent(s) : Mr. Sunil Bhandari Mr. Rajvendra Saraswat HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI HON'BLE MR. JUSTICE MUNNURI LAXMAN

Order 27/02/2024 1. [2024:RJ-JD:9880-DB] (2 of 3) [CW-19343/2022] Rajasthan & Ors. (D.B. Civil Writ Petition No.12005/2018) vide order dated 20.12.2023. The said order, passed by the Hon’ble Division Bench reads as follows:- “The present writ petition has been filed by the petitioner

challenging

the show

cause notice/assessment orders issued by the respondent - GST Department raising demand of GST on royalty paid to the respondent - Mining Department towards mining lease. Mr. Digvijay Singh Jasol has submitted that the issue involved in this writ petition has already been decided by this Court vide order dated 29.09.2022 rendered in Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. (D.B. Civil Writ Petition No.5678/2022) and other connected writ petitions while relying on the order dated 27.09.2022 passed by the Jaipur Bench of this Court in the bunch of writ petitions led by Sudershan Lal Gupta Vs. Union of India & Ors. (D.B. Civil Writ Petition No.8109/2022). It is argued that in Sudershan Lal Gupta’s case (supra), the Division Bench of this Court has held that the action of respondents with regard to imposition of GST on royalty is not liable to be interfered with. Learned counsel for the petitioner is not in a position to dispute the fact that the issue regarding demand of GST on royalty paid to the respondent - Mining Department towards mining lease has already been decided by this Court in Sudershan Lal Gupta’s case (supra) and Shree Basant Bhandar Int Udyog’s case (supra). In view of the above, this writ petition is dismissed in terms of the orders passed by this

[2024:RJ-JD:9880-DB] (3 of 3) [CW-19343/2022] Court in Sudershan Lal Gupta’s case (supra) and Shree Basant Bhandar Int Udyog’s case (supra). The stay petition also stands dismissed.”

As per the statement of Mr. Sunil Bhandari and Mr. Rajvendra Saraswat, learned counsel for respondents, the present writ petition along with the stay petition is also dismissed on the same terms. (MUNNURI LAXMAN),J (DR.PUSHPENDRA SINGH BHATI),J 58-BhumikaP/Ramesh-

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.