Mamaji Chemicals vs. Union Of INDIA

CW/18524/2023HC RajasthanGSTCNR RJHC01086744202301 December 2023Bench: VIJAY BISHNOI,MUNNURI LAXMAN2 pages

AI SummaryDismissed

Facts

The petitioner, Mamaji Chemicals, filed a writ petition challenging show cause notices and assessment orders issued by the GST Department. These notices raised a demand for GST on royalty paid to the Mining Department for a mining lease. The petitioner's counsel was unable to dispute that this specific issue had already been decided by the Rajasthan High Court in previous cases. The respondents, including the Union of India and the State of Rajasthan, were represented. The tax period(s) and the specific amount in dispute were not explicitly stated in the provided text. The procedural history involves the filing of the writ petition and the respondent's submission that the matter was already adjudicated.

Held

The Court held that the writ petition should be dismissed. This decision was based on the reasoning that the issue concerning the imposition of GST on royalty paid for a mining lease had already been conclusively decided by the Rajasthan High Court in prior judgments, namely Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and Sudershan Lal Gupta Vs. Union of India & Ors. The Court noted that the petitioner's counsel could not dispute this fact. The ratio decidendi is that where a specific issue has been decided by a coordinate bench of the High Court, subsequent writ petitions raising the same issue are to be dismissed in terms of the earlier pronouncements, without re-examining the merits. The Court did not provide any operative directions beyond dismissing 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? (Question of law, turning on the interpretation of GST provisions related to the nature of royalty payments). Petitioner's contention: The petitioner's counsel was unable to dispute the respondents' contention that the issue had already been decided by this Court. Respondents' contention: The respondents argued that the issue involved in this writ petition had already been decided by this Court in previous judgments, specifically citing 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 respondents with regard to imposition of GST on royalty is not liable to be interfered with.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

[2023:RJ-JD:41329-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 18524/2023 Mamaji Chemicals, Prop. - Chandri Devi W/o Bhiya Ram Age About 70 Years, R/o Jato Ka Bass, Manakpur, Nagaur, Rajasthan, Through P/o Holder Baldev Ram So Bhiya Ram Ji Age About 57 Years R/o Jato Ka Bas, Manakpur, Nagaur, Rajasthan. Gst. No. 08Akqpc1143C1Zm. ----Petitioner Versus 1. Union Of India, Through Secretary, Finance Department, New Delhi. 2. The State Of Rajasthan, Through Secretary, Finance Department (Tax Division), Govt. Of Rajasthan, Jaipur. 3. The Secretary, Mines And Geology Department, Govt. Of Rajasthan, Jaipur. 4. Deputy Commissioner, Gst /state Tax Department, Circle Nagaur, Ac/ Cto Ward Circle, Nagaur, Rajasthan. ----Respondents For Petitioner(s) : Mr. Amit Vyas For Respondent(s) : Mr. Sandeep Shah, Sr.Advocate-cum-AAG assisted by Mr. A. S. Rathore Mr. Rajvendra Saraswat HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE MR. JUSTICE MUNNURI LAXMAN

Order 01/12/2023 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

[2023:RJ-JD:41329-DB] (2 of 2) [CW-18524/2023] 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 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.