M/S Santosh Chemicals vs. State Of Rajasthan
Facts
The petitioner, M/s Santosh Chemicals, filed a writ petition challenging show cause notices and assessment orders issued by the 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 respondents, including the State of Rajasthan and the Union of India, were represented. The petitioner's counsel acknowledged that the issue of levying GST on royalty paid for mining leases had already been decided by the High Court in previous cases.
Held
The Court held that the issue regarding the demand of GST on royalty paid to the Mining Department for a mining lease had already been decided by this Court in the cases of Shree Basant Bhandar Int Udyog and Sudershan Lal Gupta. In Sudershan Lal Gupta's case, the Division Bench had previously ruled that the respondents' action of imposing GST on royalty was not liable to be interfered with. Therefore, following these precedents, the present writ petition was dismissed. The Court did not expressly leave any issue undecided. The operative direction was the dismissal of the writ petition and the stay petition.
Key Issues
1. Whether the imposition of GST on royalty paid for a mining lease is liable to be interfered with by the Court? The petitioner argued that the GST Department's action in demanding GST on royalty was not liable to be interfered with, as this issue had been decided by the Court in previous judgments. The respondents, through their counsel, contended that the issue had already been decided by this Court in the case of Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and Sudershan Lal Gupta Vs. Union of India & Ors. In Sudershan Lal Gupta's case, the Division Bench had held that the action of the respondents with regard to the imposition of GST on royalty was not liable to be interfered with.
AI-generated summary — verify with the full judgment below
[2023:RJ-JD:31885-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 11430/2018 M/s Santosh Chemicals, Through Partner Smt. Ram Guddiya W/o Shri Ram Kripal Ji, Age About 35, R/o Gotan Tehsil Merta District Nagaur. ----Petitioner Versus
State Of Rajasthan, Through Secretary, Mines And Geology Department, Government Of Rajasthan, Jaipur.
Secretary Finance Department, Government Of Rajasthan, Jaipur, Rajasthan.
Director, Mines And Geology Department, Udaipur.
Mining Engineer, Mines And Geology Department, Nagaur, Rajasthan.
Union Of India Through Its Secretary, Ministry Of Finance, Nirman Bhawan, New Delhi.
The Under Secretary, (St-Ii) Ministry Of Finance Department Of Revenue State Tax Division New Delhi. ----Respondents For Petitioner(s) : Mr. Arvind Vyas. For Respondent(s) : Mr. Sandeep Shah, AAG with Mr. Abhimanyu Singh. Mr. Mukesh Rajpurohit, Dy. S.G. Mr. Kuldeep Vaishnav. HON'BLE THE CHIEF JUSTICE AUGUSTINE GEORGE MASIH HON'BLE MR. JUSTICE VINIT KUMAR MATHUR Order 27/09/2023 (Oral) : The present writ petition has been filed by the petitioner challenging the show cause notice/assessment orders issued by the respondent
The judgment continues below.
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