Special Lime Stone PVT. LTD. vs. Union Of INDIA
Facts
The petitioners, Special Lime Stone Pvt. Ltd. and Amrit Lal Dava and Ghanchi Minerals, have filed writ petitions challenging show cause notices and assessment orders issued by the respondent GST Department. These notices raise a demand for Goods and Services Tax (GST) on royalty paid to the respondent Mining Department for mining leases. The respondent GST authorities passed these orders. The amount in dispute is not explicitly stated. The procedural history involves the filing of these writ petitions and connected stay petitions.
Held
The Court held that the issue regarding the demand of GST on royalty paid to the Mining Department for mining leases has already been decided by this Court in the cases 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, a Division Bench of this Court had previously ruled that the action of the respondents in imposing GST on royalty is not liable to be interfered with. The reasoning is based on the precedent set by these earlier judgments. Consequently, the present writ petitions were dismissed in terms of the orders passed in the aforementioned cases. The stay petitions filed in connection with these writ petitions were also dismissed.
Key Issues
1. Whether the action of the respondents in imposing GST on royalty paid for mining leases is liable to be interfered with by this Court? The petitioner's contention is that the GST demand on royalty is not sustainable. However, the judgment notes that the learned counsels for the petitioners were not in a position to dispute the fact that the issue regarding the demand of GST on royalty paid to the Mining Department for mining leases has already been decided by this Court. The respondent's argument, as presented through learned AAG/Sr. Advocate, is that this issue has been decided by the 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., where it was held that the imposition of GST on royalty is not liable to be interfered with.
AI-generated summary — verify with the full judgment below
[2023:RJ-JD:26816-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 1361/2023 Special Lime Stone Pvt. Ltd., Registered Office At J-190, IInd Phase Basani, Jodhpur Through Its Director Shri Vishnu Prakash Jajoo S/o Shri Bal Kishan Ji Age 52 Years, R/o J-190, II Nd Phase, Basani, Jodhpur. ----Petitioner Versus
Union Of India, Through Secretary, Finance Department, New Delhi.
The State Of Rajasthan, Through Secretary, Finance Department (Tax Division), Govt. Of Rajasthan, Jaipur.
The Secretary, Mining And Land Department, Govt. Of Rajasthan, Jaipur.
The Assistant Commissioner, Circle-B, State Tax Department Jodhpur-First, Jodhpur. ----Respondents CONNECTED WITH D.B. Civil Writ Petition No. 19122/2022
Amrit Lal Dava S/o Shri Balkishan Dava, Aged About 48 Years, R/o Baman Tunkar, Tehsil And District Rajsamand.
Ghanchi Minerals, Through Partner Goverdhan Lal Teli S/o Shri Moti Lal Ji Teli Age About 45 Years, R/o Deopura, Tehsil And District Rajsamand. ----Petitioners Versus
Union Of India, Through Secretary, Finance Department, New Delhi.
The State Of Rajasthan, Through Secretary, Finance Department (Tax Division), Govt. Of
The judgment continues below.
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