Hukum Singh vs. Union Of INDIA
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The petitioner, Hukum Singh, filed a writ petition challenging show cause notices and assessment orders issued by the respondent GST authorities. 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 imposition of GST on this royalty payment. The respondent authorities include the Union of India, the Secretary of Finance Departments (Central and State), the Secretary of the Rajasthan Mining and Geology Department, the Deputy Commissioner of Central GST, and the Assistant Commissioner of State Tax.
Held
The Court dismissed the writ petition, holding that the action of the respondents with regard to the imposition of GST on royalty is not liable to be interfered with. This decision was based on previous orders passed by the same Court. Specifically, the Court relied on its own 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 connected petitions, which in turn relied on the order dated 27.09.2022 passed by the Jaipur Bench 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 imposition of GST on royalty is not to be interfered with. The ratio decidendi is that the established precedent of the High Court on the taxability of royalty payments under GST is binding and will be followed.
Key Issues
1. Whether the imposition of GST on royalty paid for a mining lease is liable to be interfered with by this Court? (Question of law) The petitioner argued that the GST authorities' action of imposing GST on royalty payments for mining leases is not legally sustainable. The petitioner relied on previous judgments of the Rajasthan High Court. The respondents, through their counsel, did not present any specific arguments but were bound by the Court's prior decisions. The Court's decision hinges on the interpretation and application of relevant GST provisions concerning the taxability of 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:2872-DB] (2 of 2) [CW-736/2024] 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 36-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.