Murlidhar Bathija vs. Union Of INDIA

Held

The High Court has not yet delivered a final decision on the merits of the case. It has acknowledged the petitioner's challenge to the imposition of GST on royalty payments and noted the existence of similar pending cases. The Court has issued notice to the respondents, indicating that their response will be sought. As an interim measure, the Court has granted protection to the petitioner by ordering that no coercive action will be taken against him pursuant to the Assessment Order dated 27.06.2025. The core issue of whether royalty is subject to GST remains undecided, pending further proceedings and arguments from both sides. The principle that can be derived at this stage is the Court's willingness to grant interim protection in cases involving identical legal questions pending before it.

Facts

The petitioner, Murlidhar Bathija, has filed a writ petition challenging the imposition of Goods and Services Tax (GST) on royalty paid to the State Government under the Mines and Mineral (Development and Regulation) Act, 1957. The petitioner contends that an identical issue is pending before the High Court in Writ Petition No. 5027 of 2017 and other related matters. The Court has issued notice to the respondents and listed the case along with the aforementioned writ petitions. Pending further orders, the Court has directed that no coercive action will be taken against the petitioner concerning the Assessment Order dated 27.06.2025.

Key Issues

1. Whether the royalty paid to the State Government under the Mines and Mineral (Development and Regulation) Act, 1957, is exigible to Goods and Services Tax (GST)? (Question of law) Petitioner's contention: The petitioner argues that royalty payments are not subject to GST. They rely on the pendency of an identical issue in Writ Petition No. 5027 of 2017 and other batch matters before this Court, implying a pre-existing legal challenge to such imposition. Revenue/State's contention: The judgment records no specific arguments from the respondents (Union of India and others, and the State) regarding this issue at this stage. The Court has issued notice, indicating that their response will be sought.