M/S G.M. Mines vs. Union Of INDIA
Facts
The petitioner, M/s G.M. Mines, through its proprietor Mrs. Madhuri Shukla, filed a writ petition before the High Court of Rajasthan, Bench at Jaipur. The petition challenged the imposition of service tax/goods and service tax (GST) on royalty. The respondents were the Union of India, the State of Rajasthan, the Central Board of Indirect Taxes and Customs, and the Joint Commissioner (State Tax). The petitioner raised several grounds to contest the levy of GST on royalty. However, the Court referred to a previous order passed in a batch of petitions, including Sudershan Lal Gupta Contractor Versus Union of India and Others on September 27, 2022, which had already decided the issue concerning the imposition of GST on royalty.
Held
The Court dismissed the writ petition. The decision was based on the principle of stare decisis, as the Court noted that the specific issue of imposition of service tax/goods and service tax (GST) on royalty had already been decided by a previous order of the same High Court in Sudershan Lal Gupta Contractor Versus Union of India and Others on September 27, 2022. This prior judgment had attained finality on the said issue. Therefore, in view of the binding precedent, the Court found no reason to entertain the petitioner's challenge and consequently dismissed the petition. The operative direction was the dismissal of the writ petition.
Key Issues
1. Whether the imposition of service tax/goods and service tax (GST) on royalty is legally sustainable? The petitioner contended that the imposition of GST on royalty was not valid and raised multiple grounds to challenge it. The respondents, through their counsel, relied on the order passed by the same High Court in the case of Sudershan Lal Gupta Contractor Versus Union of India and Others on September 27, 2022. This prior judgment had already addressed and decided the issue of GST on royalty, implying that the respondents argued that the present petition was covered by this precedent and therefore liable to be dismissed on that specific point.
AI-generated summary — verify with the full judgment below
[2023/RJJP/012367] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 7283/2022 M/s G.M. Mines, Through It’s Proprietor Mrs. Madhuri Shukla W/o Gyan Prakash Shukla Age 56 Years, R/o 54 Vijay Nagar, Malviya Nagar, D- Block, Jaipur, Rajasthan-302017. ----Petitioner Versus
Union Of India, Under Secretary To The Government Of India, Department Of Revenue, Ministry Of Finance, North Block, New Delhi 110001. 2. State Of Rajasthan, Through Chief Commissioner State Taxes Kar Bhawan, Ambedkar Circle, Jaipur (Raj.)
Central Board Of Indirect Taxes And Customs, Through Chief Commissioner Central Taxes Central Revenue Building, Statute Circle, Jaipur (Raj.)
Joint Commissioner (State Tax), Circle-C, Zone Jaipur-II, Commercial Taxes Department, Zonal Kar Bhawan, Jaipur (Raj.) ----Respondents For Petitioner(s) : Mr. Jatin Harjai, Advocate with Mr. Mohit Kumar Soni, Advocate & Mr. Rohan Aggarwal, Advocate For Respondent(s) : Mr. R.D. Rastogi, ASG with Mr. C.S. Sinha, Advocate & Mr. Devesh Yadav, Advocate Mr. Kinshuk Jain, Advocate Mr. Punit Singhvi, Advocate HON'BLE THE ACTING CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE ANIL
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