Dalpat Singh vs. Union Of INDIA

Facts

The petitioner, Dalpat Singh, filed a writ petition challenging show cause notices and assessment orders issued by the respondent GST Department. These notices raised a demand for GST on royalty paid to the respondent-Mining Department for a mining lease. The petitioner sought to challenge these demands. The respondent authorities include the Union of India, the Secretary of the Finance Department (Tax Division), the Secretary of the Rajasthan Mining and Geology Department, the Deputy Commissioner of Central Goods and Service Tax, and the Assistant Commissioner of State Tax.

Held

The Court dismissed the writ petition. The Court noted that the issue involved in the present petition had already been decided by this Court in previous judgments. Specifically, the Court referred to its order dated 29.09.2022 in Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. (D.B. Civil Writ Petition No.5678/2022) and other connected writ petitions. These decisions, in turn, relied on an order dated 27.09.2022 passed by the Jaipur Bench of this Court in Sudershan Lal Gupta Vs. Union of India & Ors. (D.B. Civil Writ Petition No.8109/2022). In Sudershan Lal Gupta’s case, the Division Bench had held that the action of the respondents regarding the imposition of GST on royalty is not liable to be interfered with. Therefore, following these precedents, the present writ petition was dismissed. The stay petition also stood dismissed.

Key Issues

1. Whether the imposition of GST on royalty paid for a mining lease is liable to be interfered with by this Court. The petitioner argued that the GST Department's action of imposing GST on royalty payments for mining leases is not legally tenable. The petitioner relied on previous judgments of this Court. The respondents, through their counsel, contended that the action of imposing GST on royalty is in accordance with law and should not be set aside. They referred to the decisions of this Court in similar matters.