M/S Asha Stone Udhyog vs. State Of Rajasthan
Facts
The petitioner, M/s Asha Stone Udhyog, through its partner, 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 a mining lease. The respondents, including the State of Rajasthan and the Union of India, were arrayed as parties. The petitioner's counsel was unable to dispute that the issue of GST demand on royalty had been previously decided by the High Court.
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. The Court referred to its previous 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 the 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, the Division Bench had held that the respondents' action of imposing GST on royalty was not liable to be interfered with. Since the petitioner's counsel could not dispute this precedent, the Court dismissed the writ petition in terms of the previous orders. The stay petition was also 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? (Question of law) The petitioner contended that the GST Department's action of demanding GST on royalty was subject to challenge. The respondents, through the learned AAG/Sr. Advocate, argued that the issue had already been decided by this Court in previous writ petitions. They relied on the Division Bench's order in Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and the Jaipur Bench's order in Sudershan Lal Gupta Vs. Union of India & Ors., which held that 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:31401-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 11625/2018 M/s Asha Stone Udhyog, Loadsar, Tehsil Sujangarh, District Churu, Through Its Partner Damodar Prasad Sharma, S/o Sukhdev Sharma Aged About 37 Years, R/o Gram Panchayat Ke Samne Man Chok, Village Loadsar, Tehsil Ladnu, District Nagour. ----Petitioner Versus
State Of Rajasthan, Through The Secretary, Department Of Mines And Geology Jaipur.
The Secretary, Finance Department, Jaipur.
The Director, Mines And Geology Department Udaipur, Raj.
The Mining Engineer, Nagour, Rajasthan.
The Mining Engineer, Churu, 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. Baltej Singh For Respondent(s) : Mr. Sandeep Shah, Sr.Advocate-cum-AAG assisted by Ms. Akshiti Singhvi HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE MR. JUSTICE YOGENDRA KUMAR PUROHIT Order 22/09/2023 The present writ petition has been filed by the petitioner challenging the show cause notice/assessment orders is
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
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.