M/S. Shri Kalyan Marbles vs. The Union Of INDIA

Held

The Court held that the writ petition is liable to be dismissed based on a consistent view taken by the High Court in a large number of cases. These previous judgments had dismissed writ petitions challenging the levy of GST on royalty. The Court specifically relied on its earlier decisions in Sudershan Lal Gupta Contractor Vs. Union of India & Others, Udaipur Chambers of Commerce and Industry & Others Versus The Union of India & Another, M/s. Mateshwari Minerals & Another Versus Union of India & Another, M/s. Shivalik Silica Versus Union of India and Others, and Rajasthan Small Mines (Cheja Patthar) Lease Holders Association & Others Versus State of Rajasthan & Others. The ratio decidendi is that the levy of GST on royalty has been consistently upheld by this Court, and therefore, the present petition, raising the same challenge, must also be dismissed. No specific operative directions were issued other than the dismissal of the petition.

Facts

The petitioner, M/s. Shri Kalyan Marbles, through its proprietor Smt. Meena Devi Sahu, filed a writ petition challenging the levy of Goods and Services Tax (GST) on royalty. The petitioner argued that the imposition of GST on royalty falls outside the legislative competence of the government. The petition sought this principal relief, with other reliefs being consequential. The respondents were the Union of India, the State of Rajasthan through its Finance Department and Mining Department, and the Deputy Commissioner, State Tax, Enforcement Wing-I, Jaipur.

Key Issues

1. Whether the levy of GST on royalty is beyond the legislative competence of the legislature, turning on the interpretation of relevant constitutional provisions and GST legislation. Petitioner's contention: The petitioner argued that the imposition of GST on royalty is beyond the legislative competence of the government. Revenue's contention: The respondents did not explicitly record any arguments in the judgment. However, the Court's decision implies reliance on previous judgments that upheld the levy. The Court referred to a consistent view taken in numerous previous cases by the same High Court, including those challenging the levy of GST on royalty.