Smt. Minaxi Kanwar vs. Union Of INDIA
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The petitioner, Smt. Minaxi Kanwar, filed a writ petition challenging show cause notices and assessment orders issued by the respondent GST Department. These notices raised a demand for Goods and Services Tax (GST) on royalty paid by the petitioner to the respondent-Mining Department for a mining lease. The petitioner sought to challenge the authority's action in imposing GST on such royalty payments. The matter was brought before the High Court of Judicature for Rajasthan at Jodhpur.
Held
The Court held that the action of the respondents with regard to the imposition of GST on royalty is not liable to be interfered with. This finding was based on the precedent set by the Division Bench of the same Court in the case of Sudershan Lal Gupta Vs. Union of India & Ors. and other connected writ petitions, which had previously decided the issue. The ratio decidendi is that royalty payments for mining leases are subject to GST, and the GST Department's action in imposing such tax is therefore valid. The Court dismissed the present writ petition in terms of its earlier orders in the cited cases. No specific operative directions were issued beyond the dismissal of the petition and the stay petition.
Key Issues
1. Whether the imposition of GST on royalty paid for a mining lease by the respondent GST Department is legally sustainable? This question turns on the interpretation of relevant GST provisions concerning the taxable event and the nature of royalty payments. The petitioner contended that the GST Department's action in imposing GST on royalty is not liable to be interfered with. The revenue's argument was not explicitly recorded in the judgment, but the court's decision implies that they supported the imposition of GST. The court relied on previous decisions of the same High Court in similar matters, specifically 'Sudershan Lal Gupta Vs. Union of India & Ors.' and 'Shree Basant Bhandar Int Udyog Vs. Union of India & Ors.', which had already addressed this issue.
Sections Cited
None explicitly mentioned in the provided text, though the context implies discussion of GST provisions related to taxable events and royalty payments.
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Cause title — parties, addresses and appearances
Order 18/01/2024
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.
Learned counsel for the petitioner fairly submits 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
[2024:RJ-JD:2869-DB] (2 of 2) [CW-703/2024] 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).
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.
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.
(YOGENDRA KUMAR PUROHIT),J (ARUN BHANSALI),J 34-Arun P/-
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.