C.Maheswari vs. The State Tax Officer

Facts

The petitioner, C. Maheswari, filed a writ petition challenging a notice dated 29.10.2025 issued by the respondent, The State Tax Officer, Sengottai. The notice sought to levy Goods and Services Tax (GST) amounting to Rs. 8,16,922/- on seigniorage fee/royalty and DMFT paid for quarrying and transporting minerals for the tax period 2022-2023. The petitioner contended that the issue of levying GST on seigniorage fee/royalty is currently pending before the Hon'ble Supreme Court. The High Court heard both sides at the admission stage.

Held

The Court acknowledged that the issue concerning the levy of GST on seigniorage fee/royalty is pending before the Hon'ble Supreme Court. Consequently, the Court decided to dispose of the writ petition at the admission stage by directing the respondent to keep all further proceedings in abeyance. The respondent is to await the final order from the Hon'ble Supreme Court and then proceed in accordance with law. As a condition, the petitioner is required to deposit 10% of the disputed tax amount as security. The Court did not decide the merits of the case but rather deferred action pending a higher court's ruling. No specific issue was expressly left undecided, as the decision was based on the pendency of a matter before the Supreme Court.

Key Issues

1. Whether the notice dated 29.10.2025 issued by the respondent for levying GST of Rs. 8,16,922/- on seigniorage fee/royalty and DMFT paid for quarrying and transporting minerals for the tax period 2022-2023 is liable to be quashed. Petitioner's Contention: The petitioner argued that the core issue regarding the levy of GST on seigniorage fee/royalty is presently sub judice before the Hon'ble Supreme Court. Therefore, proceedings should be stayed pending the Supreme Court's decision. Respondent's Contention: The judgment does not record any specific arguments made by the respondent at this stage, other than the fact that they were heard.