Paragon Marmo, A Partnership Firm 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 repelled an identical challenge to the leviability of GST on royalty in the case of Sudarshan Lal Gupta vs. Union of India & Ors. Despite the petitioner's contention that the earlier judgment had misinterpreted a Supreme Court ruling and that the matter was pending before a larger bench of the Supreme Court, the High Court declined to take a different view from its own coordinate bench. The Court's ratio decidendi is that it will follow the precedent set by its own coordinate benches on identical issues, even if the broader issue is under consideration by a higher court.
Facts
The petitioner, Paragon Marmo, a partnership firm, 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 in the case of Sudarshan Lal Gupta vs. Union of India & Ors. (D.B. Civil Writ Petition No.8109/2022). Despite the earlier ruling, the petitioner's counsel argued that the Division Bench had misinterpreted a Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha. The petitioner also noted that the issue of GST on royalty was pending before a nine-judge Bench of the Supreme Court in Mineral Area Development Authority etc. & Ors. vs. M/s. Steel Authority of India & Ors.
Key Issues
1. Whether the Division Bench of the Rajasthan High Court correctly interpreted the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha in its decision in Sudarshan Lal Gupta vs. Union of India & Ors., concerning the leviability of GST on royalty. Petitioner's Contention: The petitioner argued that the Division Bench in Sudarshan Lal Gupta had failed to correctly interpret the Supreme Court's decision in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha, and therefore, the present writ petition should be accepted. The petitioner also highlighted that the broader issue of GST on royalty was pending before a nine-judge Bench of the Supreme Court. Respondents' Contention: The judgment does not record any specific arguments made by the respondents.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 12335/2022 Paragon Marmo, A Partnership Firm, Having Its Registered Address At 94, New Fatehpura, Udaipur Through Its Partner Vikas Surana S/o Shri Bhatgwat Singh Surana, Aged About 51 Years, R/o Near Uit Circle, New Fatehpura, Udaipur (Raj.). ----Petitioner Versus
Union Of India, Through Finance Secretary, Finance Department, New Delhi.
State Of Rajasthan, Through Principal Secretary, Department Of Mines And Minerals, Government Of Rajasthan, Secretariat, Jaipur, Rajasthan.
Finance Secretary, State Finance Department (Tax Division), Jaipur (Raj.).
Assistant Commissioner, State Tax, Ward 1, Circle D, Udaipur (Raj.). ----Respondents For Petitioner(s) : Mr. Paramveer Singh For Respondent(s) : -- HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR Order 13/10/2022 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.) a
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