M/S Sanwariya Stone vs. Union Of INDIA
Held
The Court held that there was no merit in the writ petition. It reasoned that a coordinate bench of the same High Court had already considered and repelled an identical challenge to the leviability of GST on royalty in the case of Sudarshan Lal Gupta. Despite the petitioner's argument that this previous decision was based on a misinterpretation of a Supreme Court judgment, and acknowledging that similar issues are pending before the Supreme Court, the Court stated it was not inclined to take a different view. Therefore, the writ petition was dismissed.
Facts
The petitioner, M/s Sanwariya Stone, filed a writ petition challenging orders/notices issued by the respondent Department demanding Goods and Services Tax (GST) on royalty collected by the petitioner. This challenge was identical to one previously considered by a Division Bench of the Rajasthan High Court at Jaipur in the case of Sudarshan Lal Gupta vs. Union of India & Ors. dated September 27, 2022. The petitioner argued that the Division Bench in Sudarshan Lal Gupta had misinterpreted a Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha. The Court noted that similar matters are pending before the Supreme Court, including a nine-judge bench case concerning the leviability of GST on royalty.
Key Issues
1. Whether the Division Bench of this Court in Sudarshan Lal Gupta vs. Union of India & Ors. correctly interpreted the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha, thereby correctly repelling the challenge to the demand of GST on royalty? Petitioner's Contention: The petitioner argued that the Division Bench in Sudarshan Lal Gupta failed to make a correct interpretation of the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha, and therefore, the writ petition merits acceptance. Respondents' Contention: The judgment does not record any specific contentions made by the respondents. However, it notes that a coordinate bench had previously repelled a similar challenge.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 13227/2022 M/s Sanwariya Stone, Through Its Authorised Signatory Shri Mrityunjay Sanadhya S/o Shri Kamlesh Kumar Sanadhya, Aged About 45 Years, Office At B-330, R.k. Colony, Bhilwara, Rajasthan 311001. ----Petitioner Versus
Union Of India, Through The Secretary, Finance Department, Government Of India, New Delhi.
The State Of Rajasthan, Through The Principal Secretary, Finance Department (Tax Division), Secretariat, Jaipur.
The Secretary, Mining Department, Government Of Rajasthan, Secretariat, Jaipur.
Deputy Commissioner (State Tax Department), Circle C, Bhilwara, Rajasthan 311001. ----Respondents For Petitioner(s) : Mr. Vinay Kothari Mr. Pradeep Khichi Mr. Ayush Goyal Mr. Lokesh Babel For Respondent(s) : --- HON'BLE THE CHIEF JUSTICE MR. PANKAJ MITHAL HON'BLE MR. JUSTICE SANDEEP MEHTA Order 18/10/2022 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.
The judgment continues below.
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