M/S Shakambhari Natural Granites vs. State Of Rajasthan
Facts
The petitioner, M/s Shakambhari Natural Granites, filed a writ petition before the Rajasthan High Court at Jodhpur challenging show cause notices and assessment orders issued by the GST Department. These notices raised a demand for GST on royalty paid to the Mining Department for a mining lease. The respondents, including the State of Rajasthan and the Deputy Commissioner, GST Department, argued that the issue had already been decided by the High Court. They cited previous judgments in DB Civil Writ Petition No. 5678/2022 (Shree Basant Bhandar Int Udyog vs. UOI & Ors.) and DB Civil Writ Petition No. 8109/2022 (Sudershan Lal Gupta vs. Union of India & Ors.). The petitioner's counsel did not dispute that the issue had been previously adjudicated by the Court.
Held
The Court held that the issue regarding the imposition of GST on royalty paid to the Mining Department for a mining lease had already been decided by this Court in previous judgments. Specifically, the Court referred to its decision in Sudershan Lal Gupta vs. Union of India & Ors. (decided on 27.09.2022) and Shree Basant Bhandar Int Udyog vs. UOI & Ors. (decided on 29.09.2022). In Sudershan Lal Gupta's case, the Division Bench had held that the respondents' action with regard to the imposition of GST on royalty was not liable to be interfered with. Since the petitioner's counsel did not dispute the applicability of these precedents to the present case, the Court found no reason to deviate from its earlier findings. Consequently, the writ petition was dismissed in terms of the aforementioned judgments.
Key Issues
1. Whether the imposition of GST on royalty paid to the Mining Department for a mining lease is liable to be interfered with by this Court? This issue turns on the interpretation and application of relevant GST provisions concerning the taxability of royalty payments. The petitioner contended that the GST Department's action in demanding GST on royalty was incorrect. The respondents argued that the issue had been conclusively decided by this Court in previous judgments, specifically in Sudershan Lal Gupta's case and Shree Basant Bhandar Int Udyog's case. They relied on the findings in these prior decisions which held that the respondents' action regarding the imposition of GST on royalty was not liable to be interfered with. The petitioner's counsel did not dispute the applicability of these precedents.
AI-generated summary — verify with the full judgment below
[2023/RJJD/011882] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 4315/2023 M/s Shakambhari Natural Granites, Having Its Principal Place Of Business At Kharndia, Rajsamand, Rajasthan, 313324, Through Its Partner Shail Singh Chouhan S/o Man Singh Chouhan, Aged About 62 Years, R/o Kharndia Post Boraj, Teh And District Rajsamand, Rajasthan. ----Petitioner Versus
State Of Rajasthan, Through The Secretary Department Of Finance (Government Of Rajasthan) 1St Floor, Main Building, Gate 2, Government Secretariat, Jaipur, Rajasthan 302005. 2. Deputy Commissioner, Circle-A, Rajsamand Kar Bhawan, 100 Ft Road, Opp. Collector Bungalow, Rajsamand 313324. 3. Central Board Of Indirect Taxes And Customs, Through Its Chairman, North Block, Central Secretariat, New Delhi - 110001 ----Respondents For Petitioner(s) : Mr. Priyansh Arora For Respondent(s) : Mr. Sandeep Shah, Sr.Advocate-cum- AAG assisted by Mr. A. S. Rathore HON'BLE MR. JUSTICE VIJAY BISHNOI HON'BLE MR. JUSTICE PRAVEER BHATNAGAR Order 25/04/2023 The present writ petition has been filed by the petitioner challenging the show cause notice/assessment orders issued by the GST Department raising deman
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