M/S Magimai M Sand vs. The State Tax Officer (Roving Squad -1)
Held
The Court noted that the issue of GST payable on royalty is the subject matter of an appeal before the Hon'ble Supreme Court in the case of Udaipur Chambers of Commerce and Industry and others Vs. Union of India and others. Consequently, the Court disposed of the writ petitions, directing them to await the orders of the Hon'ble Supreme Court. Pending further orders, all recovery proceedings were ordered to be kept in abeyance. The Court also granted liberty to the petitioner to file a statutory appeal before the Appellate Commissioner within 30 days from the receipt of the order, and the Appellate Commissioner was directed to entertain the appeal without reference to limitation, awaiting the Supreme Court's decision. The Court did not decide the merits of the GST levy on royalty.
Facts
The petitioner, M/s. Marginal M Sand, represented by its proprietor, filed four writ petitions challenging orders dated 28.03.2024 and 12.06.2024 passed by the State Tax Officer (Roving Squad -1) for the tax periods 2018-2019 to 2021-2022. The dispute concerns the levy of GST on royalty payable to the Government. The impugned orders confirmed the demand, and recovery proceedings were initiated, with part of the tax already recovered. The petitioner sought to quash these orders as illegal, arbitrary, and against natural justice.
Key Issues
1. Whether the levy of GST on royalty payable to the Government is legally sustainable, considering the pending appeal before the Hon'ble Supreme Court in Udaipur Chambers of Commerce and Industry and others Vs. Union of India and others? (Question of law) Petitioner's Contention: The petitioner argued that the issue of GST on royalty is currently under consideration by the Supreme Court, and therefore, the present proceedings should await the apex court's decision. The petitioner sought to keep recovery proceedings in abeyance. Revenue's Contention: The revenue did not explicitly record arguments. However, they were represented and took notice of the petitions.
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 14.08.2025 CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P(MD)Nos.17253, 17254, 17267 and 17308 of 2025 W.P(MD)No.22159 of 2025 M/s.Marginal M Sand, Rep by its Proprietor S.Abraham Muller, 33AHLPA8127G2ZK 1/292, Nathikudi, Sivakasi ... Petitioner Vs. 1.The State Tax Officer (Roving Squad -1), O/o. the Joint Commissioner (ST) (Int), Commercial Tax Building, Virudhuangar. 2.The Assistant Commissioner (ST) -I, Commercial Tax Building, Sivakasi. ...Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari, calling for the records in Ref.No 33AHLPA8127G2ZK /2018-19 dated 28.03.2024 on the file of the first respondent and quash the same as illegal, arbitrary, against the principles 1/8 https://www.mhc.tn.gov.in/judis of natural justice and pass such further or other orders as this Court may deem fit and necessary in the facts and c
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.