M/S Pradyuman Singh Ranawat vs. Union Of INDIA
Held
The Court held that it was not inclined to take a different view from the coordinate bench's decision in Sudarshan Lal Gupta vs. Union of India & Ors. The reasoning was that a similar challenge to the leviability of GST on royalty had already been repelled by a coordinate bench of the same High Court. Although the petitioner argued for a different interpretation of a Supreme Court judgment and noted that the issue is pending before a larger bench of the Supreme Court, the Court chose to follow the established precedent within the High Court. The Court found no merit in the writ petition. No specific operative directions were issued beyond dismissing the petition.
Facts
The petitioner, M/s Pradyuman Singh Ranawat, 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 the case of Sudarshan Lal Gupta vs. Union of India & Ors. (D.B. Civil Writ Petition No.8109/2022). Despite the petitioner's argument that the Sudarshan Lal Gupta judgment misinterpreted a Supreme Court ruling, 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 is bound by its previous decision in Sudarshan Lal Gupta vs. Union of India & Ors. regarding the leviability of GST on royalty, despite the petitioner's contention that it misinterprets the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha? Petitioner's Arguments: The petitioner argued that the Division Bench in Sudarshan Lal Gupta failed to correctly interpret the Supreme Court's judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha, and therefore, the writ petition should be accepted. The petitioner also highlighted that the issue is pending before a larger bench of the Supreme Court. Respondents' Arguments: The judgment does not record any specific arguments made by the respondents. However, the Court's decision implies reliance on the precedent set by the Jaipur Bench.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 13947/2022 M/s Pradyuman Singh Ranawat, Through Its Proprietor Mr. Pradyuman Singh Ranawat S/o Mandata Singh Ranawat, Aged About 35 Years, R/o 214, Indraprastha Tower, 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), Circle D, Bhilwara, Ac / Cto Ward Circle-D, Bhilwara Rajasthan 311001. ----Respondents For Petitioner(s) : Mr. Vinay Kothari For Respondent(s) : -- HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR Order 10/10/2022 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,
The judgment continues below.
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