M/S Shiv Shakti Mines vs. State Of Rajasthan
Facts
The petitioner, M/s Shiv Shakti Mines, filed a writ petition challenging show cause notices and assessment orders issued by the GST Department. These notices demanded GST on royalty paid to the Mining Department for mining leases. The respondents, represented by the State of Rajasthan and the Joint Commissioner, State Taxes Department, argued that the issue had already been decided by the High Court. They referred to 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 acknowledged that the issue had indeed been previously decided by the Court.
Held
The Court held that the issue regarding the demand of GST on royalty paid to the Mining Department towards a mining lease had already been decided by this Court in the cases of Sudershan Lal Gupta (supra) and Shree Basant Bhandar Int Udyog (supra). In the case of Sudershan Lal Gupta, the Division Bench had previously ruled that the respondents' action of imposing GST on royalty was not liable to be interfered with. The petitioner's counsel acknowledged that this issue had been decided in the aforementioned cases. Consequently, the Court dismissed the present writ petition in terms of the judgments delivered in Sudershan Lal Gupta and Shree Basant Bhandar Int Udyog. The ratio decidendi is that if a legal issue concerning GST on royalty payments has been authoritatively decided by the High Court, subsequent writ petitions raising the same issue will be dismissed in accordance with the precedent.
Key Issues
1. Whether the imposition of GST on royalty paid to the Mining Department towards a mining lease is liable to be interfered with by this Court? Petitioner's Argument: The petitioner challenged the GST demand on royalty payments. However, the petitioner's counsel did not dispute the fact that this specific issue had already been decided by the High Court in prior cases. Revenue's Argument: The respondents contended that the issue of imposing GST on royalty paid to the Mining Department had already been decided by the High Court in the cases of Shree Basant Bhandar Int Udyog and Sudershan Lal Gupta. In the Sudershan Lal Gupta case, the Division Bench had held that the action of the respondents regarding the imposition of GST on royalty was not liable to be interfered with.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 3099/2023 M/s Shiv Shakti Mines, Having Principal Place Of Business At Near Rathori Kuwa Park, Rathori Kuwa, Nagaur (Rajasthan), Through Its Proprietor Shri Ram Swroop Shankhla S/o Shri Ram Baksh Sankhla, Aged About 61 Years, Resident Of Rathori Kuwa, Nagaur (Rajasthan) - 341001. ----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. Office Of Joint Commissioner, State Taxes Department, Circle Nagaur, Kar Bhawan, Manasar, Nagaur (Rajasthan) 341001. 3. Central Board Of Indirect Taxes And Customs, Through Its Chairman, North Block, Central Secretariat, New Delhi 110001. ----Respondents For Petitioner(s) : Mr. G.K. Chhangani. For Respondent(s) : Mr. Sandeep Shah, Sr. Adv. cum AAG assisted by Mr. Nishant Bafna. Mr. Rajvendra Saraswat. 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 GS
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