Shree Mineral Khanij Udyog vs. Union Of INDIA
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The petitioner, Shree Mineral Khanij Udyog, 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 to the respondent Mining Department for mining leases. The petitioner is represented by Gokul Ram Choudhary, Partner. The respondents include the Union of India, the State of Rajasthan (through its Finance Department and Mines and Geology Department), and the Deputy Commissioner, State Tax Department, Jodhpur.
Held
The Court dismissed the writ petition. The decision was based on previous judgments rendered by the same High Court. Specifically, the Court relied on its order dated 29.09.2022 in Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and other connected writ petitions, which in turn relied on an order dated 27.09.2022 passed by the Jaipur Bench in Sudershan Lal Gupta Vs. Union of India & Ors. In Sudershan Lal Gupta’s case, a Division Bench of the High Court had held that the action of the respondents in imposing GST on royalty is not liable to be interfered with. The petitioner's counsel could not dispute this precedent. Consequently, the present writ petition was dismissed in terms of these prior orders. The stay petition also stood dismissed.
Key Issues
1. Whether the imposition of GST on royalty paid for mining leases is liable to be interfered with by this Court? (Question of law) The petitioner argued that the GST Department's action of imposing GST on royalty is not legally tenable. However, the petitioner's counsel was unable to dispute the fact that this specific issue had already been decided by the High Court in previous cases. The respondents, through Mr. Sandeep Shah, Sr. Adv.-cum-AAG, contended that the issue has been conclusively decided by this Court in prior judgments, specifically referencing Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and Sudershan Lal Gupta Vs. Union of India & Ors., where the imposition of GST on royalty was upheld.
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
Order 24/11/2023 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:40522-DB] (2 of 2) [CW-17078/2023] 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.
(YOGENDRA KUMAR PUROHIT),J (VIJAY BISHNOI),J 208-Arun/-
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.