Anmol Granites 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 Rajasthan High Court had already dealt with and 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 argument regarding misinterpretation of a Supreme Court judgment and the pendency of a related matter 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 writ petition was dismissed.
Facts
The petitioner, Anmol Granites, through its authorized signatory, 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. The petitioner argued that the earlier judgment 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 the issue of GST on royalty was 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 demand of GST on royalty collected by the petitioner is legally sustainable, considering the interpretation of the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha by a coordinate bench of this Court. Petitioner's contention: The learned Division Bench in Sudarshan Lal Gupta (supra) failed to correctly interpret the Supreme Court judgment in State of Assam vs. Barak Upatyaka D.U. Karmachari Sanstha, and therefore, the writ petition merits acceptance. Respondents' contention: Not recorded in the judgment.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 13951/2022 Anmol Granites, Through Its Authorised Signatory, Partner Shri Vinod Kumar S/o Shri Bhanwar Lal, Aged About 50 Years, R/o Village Nimbaheda Jaatan, Tehsil Maandal, Dist. Bhilwara (Raj.). ----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 C, 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, Division Bench of this Court
The judgment continues below.
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