M/S Hariom Mines And Minerals vs. Union Of INDIA
Held
The Court held that there was no merit in the writ petition. It noted that a coordinate bench of the Rajasthan High Court had previously repelled an identical challenge to the leviability of GST on royalty in the case of Sudarshan Lal Gupta vs. Union of India & Ors. Although the petitioner argued that this previous decision was based on an incorrect interpretation of a Supreme Court judgment and that the larger issue is pending before a nine-judge Bench of the Supreme Court, the Court stated it was not inclined to take a different view from its coordinate bench. Therefore, the petition was dismissed. The Court did not expressly leave any issue undecided.
Facts
The petitioner, M/s Hariom Mines And Minerals, filed a writ petition challenging orders and 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 a bunch of writ petitions led by D.B. Civil Writ Petition No.8109/2022 (Sudarshan Lal Gupta vs. Union of India & Ors.). The petitioner argued that the Jaipur Bench's decision in Sudarshan Lal Gupta failed to correctly interpret a Supreme Court judgment. Despite this, the Court noted that the issue of GST on royalty is pending before a nine-judge Bench of the Supreme Court in the case of Mineral Area Development Authority etc. & Ors. vs. M/s. Steel Authority of India & Ors.
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 leviability 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. Revenue's contention: The judgment records no specific contention for the revenue or state respondents, other than implicitly supporting the demand for GST on royalty as upheld in previous judgments.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 15281/2022 M/s Hariom Mines And Minerals, Through Its Partner Mr. Hemendra Kalal S/o D.k Kheda, Aged About 29 Years, R/o S/f 29, Dungarpur, Rajasthan 314001. ----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, Circle A, Enforcement Branch Ii, State Tax, Jaipur, Rajasthan. ----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 17/10/2022 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 matt
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