M/S Neelkanth Mahadev Marble vs. State Of Rajasthan
Facts
The petitioner, M/s Neelkanth Mahadev Marble, filed a writ petition challenging show cause notices and assessment orders issued by the GST Department. These orders sought to levy Goods and Services Tax (GST) on royalty paid by the petitioner to the Mining Department for mining leases. The petitioner argued that this issue had already been decided by the Rajasthan High Court in previous writ petitions, specifically citing 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 respondents are the State of Rajasthan, the Deputy Commissioner, Circle-B, Rajsamand, and the Central Board of Indirect Taxes and Customs.
Held
The Court dismissed the writ petition, holding that the issue of imposing GST on royalty paid for mining leases has already been decided by this Court in previous judgments. Specifically, the Court referred to its decision in DB Civil Writ Petition No. 8109/2022 (Sudershan Lal Gupta vs. Union of India & Ors.), wherein it was held that the action of the respondents with regard to the imposition of GST on royalty is not liable to be interfered with. Consequently, the present writ petition was dismissed in terms of the judgments in Sudershan Lal Gupta (supra) and Shree Basant Bhandar Int Udyog (supra). The ratio decidendi is that if a similar issue has been conclusively decided by the High Court, subsequent petitions raising the same issue are likely to be dismissed based on the existing precedent.
Key Issues
1. Whether the imposition of GST on royalty paid for mining leases is liable to be interfered with by this Court? The petitioner contended that the issue of levying GST on royalty paid to the Mining Department for mining leases has already been decided by this Court in prior judgments, specifically in Sudershan Lal Gupta (supra) and Shree Basant Bhandar Int Udyog (supra). They relied on these precedents to argue that the current demand is unsustainable. The respondents, through the Court's reference to prior judgments, implicitly argued that the imposition of GST on royalty was valid, as indicated by the Court's dismissal of the petition based on those prior decisions. The Court's order does not explicitly detail arguments made by the respondents in this specific writ petition, but rather refers to the established position from previous cases.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 4296/2023 M/s Neelkanth Mahadev Marble, Having Its Principal Place Of Business At Kelwa, Rajsamand, Rajasthan, 313334, Through Its Partner Sushil Kumar Sharma S/o Biswa Nath Sharma, Aged About 65 Years, Resident Of Kelwa Tehsil And District Rajsamand - 313334 (Raj.). ----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-B, Rajsamand Kar Bhawan, 100 Ft Road, Opp. Collector Bungalow, Rajsamand.
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) : HON'BLE MR. JUSTICE ARUN BHANSALI HON'BLE MR. JUSTICE RAJENDRA PRAKASH SONI Order 24/04/2023
The present writ petition has been filed by the petitioner challenging the show cause notice/assessment orders issued by the GST Department raising demand of GST on royalty paid to the Mining Department towards mining lease.
Counsel for the p
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