Arham Marbles At Kelwa vs. Central Board Of Excise And Customs
Held
The Court held that there was no merit in the writ petition. It noted that a coordinate bench of the Rajasthan High Court at Jaipur had already repelled an identical challenge to the levy of GST on royalty in the case of Sudarshan Lal Gupta vs. Union of India & Ors. dated September 27, 2022. Although the petitioner argued that the Jaipur Bench had failed to correctly interpret a Supreme Court judgment, and that the larger issue was pending before a nine-judge bench of the Supreme Court, the Court was not inclined to take a different view from its coordinate bench. Therefore, the writ petition was dismissed. The ratio decidendi is that a coordinate bench's decision on a similar issue, even if under challenge or pending larger adjudication, is binding on another coordinate bench unless there are compelling reasons to deviate.
Facts
The petitioner, Arham Marbles, filed a writ petition challenging orders and notices issued by the respondent tax authorities demanding Goods and Services Tax (GST) on royalty collected by the petitioner. This challenge was identical to that made in a batch of writ petitions led by Sudarshan Lal Gupta vs. Union of India & Ors. A Division Bench of the Rajasthan High Court at Jaipur, in the Sudarshan Lal Gupta case decided on September 27, 2022, had previously rejected a similar challenge to the levy of GST on royalty. Despite this, the petitioner's counsel argued that the Jaipur Bench had misinterpreted a Supreme Court judgment.
Key Issues
1. Whether the Rajasthan High Court, Jaipur Bench, correctly interpreted the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha (Civil Appeal No.6492/2002) in its decision in Sudarshan Lal Gupta vs. Union of India & Ors. regarding the levy of GST on royalty? Petitioner's contention: The learned Division Bench in Sudarshan Lal Gupta erred in its interpretation of the Supreme Court judgment, and therefore, the present writ petition should be accepted. Respondent's contention: Not recorded in the judgment. The judgment notes that similar previous judgments have been challenged before the Supreme Court, and the issue is pending before a nine-judge bench in Mineral Area Development Authority etc. & Ors. vs. M/s. Steel Authority of India & Ors., but a coordinate bench of this court has already repelled the same challenge.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 12490/2022 Arham Marbles At Kelwa, Kelwa Rajsamand Through Its Authorised Signatory Phooli Devi Bohara W/o Bheru Lal Bohara Aged About 76 Years R/o Arham Palace Kelwa Rajsamand Raj. 313334 ----Petitioner Versus
Central Board Of Excise And Customs, Govt. Of India Ministry Of Finance Deptt. Of Revenue (Tax Research Unit) North Block New Delhi Through Its Secretary
Chief Commissioner, State Tax Rajasthan Jaipur Kar Bhawan Ambedkar Circle C-Sheme Bhawani Singh Rd, Jaipur Raj. 302005
Deputy Commissioner, Circle Rajsamand-B State Tax Deptt. Rajsamand Raj. ----Respondents For Petitioner(s) : Mr. Prateek Gattani For Respondent(s) : --- HON'BLE THE CHIEF JUSTICE MR. PANKAJ MITHAL HON'BLE MR. JUSTICE SANDEEP MEHTA Order 19/10/2022 The petitioner, through this writ petition, has laid challenge to the impugned orders/notice issued by the respondent Department demanding GST on the royalty collected by the petitioner. In a bunch of writ petitions led by D.B. Civil Writ Petition No.8109/2022 (Sudarshan Lal Gupta vs. Union of India & Ors.) and connected matters, Division Bench of this Court at Jaipur Be
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