Nagem Cori vs. The Deputy State Tax Officer-1
Facts
The petitioner, Nagem Cori, represented by its Proprietor Aliar Urawther Ibrahim Kunju, filed a writ petition challenging a show cause notice dated 09.12.2024 and an assessment order dated 12.06.2025, issued by the Deputy State Tax Officer-1, Tenkasi. The assessment order pertains to the financial year 2021-22 and levies GST on royalty and seigniorage charges related to the petitioner's mining activities. The petitioner contends that GST is not payable on mining activities, a matter awaiting a final decision from the Supreme Court in the case of Udaipur Chambers of Commerce and Industry and Others Vs. Union of India and Others. The Madras High Court has been keeping recovery proceedings in abeyance pending this Supreme Court decision.
Held
The Court acknowledged that the issue of GST leviability on royalty and seigniorage charges for mining activities is pending before the Supreme Court in the case of Udaipur Chambers of Commerce and Industry and Others Vs. Union of India and Others. The Madras High Court has consistently held a position of keeping recovery proceedings in abeyance until the Supreme Court's decision. In light of this, the Court granted the petitioner liberty to file a statutory appeal within four weeks from the receipt of the order's copy. Such an appeal, if filed within the stipulated period, would be numbered without reference to limitation. Furthermore, the petitioner would not be required to make any pre-deposit, in view of the Supreme Court's decision. The Court disposed of the writ petition with these directions.
Key Issues
1. Whether GST is leviable on royalty and seigniorage charges payable on account of mining activities, in light of the pending Supreme Court decision in Udaipur Chambers of Commerce and Industry and Others Vs. Union of India and Others (Special Leave to Appeal (C)No.37326 of 2017)? (Question of law) Petitioner's Contentions: The petitioner argued that GST is not payable on mining activities, as this issue is sub-judice before the Supreme Court. They relied on the consistent stand of the Madras High Court to keep recovery proceedings in abeyance pending the Supreme Court's decision. Respondent's Contentions: The respondent (Deputy State Tax Officer-1, Tenkasi) did not record any specific arguments in the judgment. However, the issuance of the assessment order indicates their position that GST is leviable.
AI-generated summary — verify with the full judgment below
1 W.P.(MD)NO.29295 OF 2025 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 25.10.2025 CORAM THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN W.P.(MD)No.29295 of 2025 AND W.M.P.(MD)Nos.22645 & 22646 of 2025 Nagem Cori, Rep. by its Proprietor, Aliar Urawther Ibrahim Kunju, No.7/182-2, Main Road, Ariyanayagipuram, K.M.Meenachipuram – 627 862. ... Petitioner Vs. The Deputy State Tax Officer-1, Tenkasi, O/o.the Assistant Commissioner (State Tax), Near Yaanaipalam, Tenkasi – 627 811. ... Respondent Prayer: Writ petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, to call for the records from the file of the respondent in the impugned show cause notice in Reference No.ZD331224065197H in GSTIN/ID No.33AEGP16630C1Z0 dated 09.12.2024 and the impugned order in Reference
No.ZD330625116190U
in GSTIN/1D No.33AEGP16630C1Z0 dated 12.06.2025 issued for the F.Y.2021-22 and quash the same as without juri iction and violative of principles of natural justice, erroneous on facts and law. 1/4 https://www.mhc.tn.gov.in/judis
2 W.P.(MD)NO.29295 OF 2025 For Petitio
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