Subh Laxmi Chemical vs. Union Of INDIA
Original PDF →Facts
The petitioner, Subh Laxmi Chemical, has filed a writ petition challenging show cause notices and assessment orders issued by the GST Department. These notices raise a demand for GST on royalty paid to the Mining Department for a mining lease. The respondents, including the Union of India and the State of Rajasthan, have argued that the issue has already been decided by the High Court in previous cases. The petitioner's counsel could not dispute this fact. The writ petition and stay petition have been dismissed in light of these prior judgments.
Held
The Court held that the issue regarding the demand of GST on royalty paid to the Mining Department for a mining lease has already been decided by this Court in the cases of 'Shree Basant Bhandar Int Udyog Vs. Union of India & Ors.' and 'Sudershan Lal Gupta Vs. Union of India & Ors.'. In 'Sudershan Lal Gupta’s case', the Division Bench had previously ruled that the imposition of GST on royalty by the respondents was not liable to be interfered with. As the petitioner's counsel could not dispute the applicability of these prior judgments, the Court found no reason to deviate from its earlier pronouncements. Consequently, the writ petition was dismissed in terms of the aforementioned orders. The ratio decidendi is that once a legal issue has been authoritatively decided by a High Court, subsequent petitions raising the same issue, without distinguishing facts or law, are liable to be dismissed on the principle of precedent. The operative direction was the dismissal of the writ petition and the stay petition.
Key Issues
1. Whether the imposition of GST on royalty paid to the Mining Department for a mining lease is liable to be interfered with by this Court? The petitioner's contention is that the GST Department has issued show cause notices and assessment orders demanding GST on royalty paid for a mining lease. The respondents, represented by the learned AAG/Sr. Advocate, argued that this specific issue has already been decided by the High Court in previous judgments, namely '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 held that the action of the respondents regarding the imposition of GST on royalty is not liable to be interfered with. The petitioner's counsel was unable to dispute the existence and applicability of these prior decisions.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 29/01/2024 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. Sandeep Shah, learned AAG/Sr. Advocate 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
[2024:RJ-JD:4367-DB] (2 of 2) [CW-1107/2024] 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 Court in Sudershan Lal Gupta’s case (supra) and Shree Basant Bhandar Int Udyog’s case (supra). The stay petition also stands dismissed. (MUNNURI LAXMAN),J (VIJAY BISHNOI),J 10-AjaySingh/-
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.