Sabu Devi vs. State Of Rajasthan

Facts

The petitioner, Sabu Devi, through her Power of Attorney Holder, challenged 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 to the respondent Mining Department for mining leases. The respondents, including the State of Rajasthan and the Union of India, were represented. The petitioner's counsel acknowledged that the core issue had been previously decided by the High Court.

Held

The Court held that the writ petitions were to be dismissed in terms of the orders passed in the previously decided cases of Shree Basant Bhandar Int Udyog and Sudershan Lal Gupta. The reasoning was based on the principle of precedent, where the Court acknowledged that the issue regarding the demand of GST on royalty paid to the Mining Department for mining leases had already been conclusively decided by this Court in the aforementioned cases. The Court found no reason to interfere with the respondents' action of imposing GST on royalty, as per the established legal position in the prior judgments. The stay petitions were also dismissed.

Key Issues

1. Whether the imposition of GST on royalty paid to the Mining Department for mining leases is liable to be interfered with by this Court? Petitioner's Argument: The judgment does not record any specific arguments made by the petitioner's counsel beyond their inability to dispute the prior decisions. Respondent's Argument: The respondent argued that the issue involved in the writ petition had already been decided by this Court in previous judgments, specifically in 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 had held that the action of the respondents in imposing GST on royalty was not liable to be interfered with.