2024 (2) TMI 1502 - HC - GST

Challenge to assessment order issued under the Tamil Nadu Goods and Services Tax Act 2017 - imposition of GST under the reverse charge mechanism on the seigniorage paid by the petitioner to the Government - HELD THAT - Reliance placed in TVL. A. VENKATACHALAM VERSUS THE ASSISTANT COMMISSIONER (ST) 2024 (2) TMI 488 - MADRAS HIGH COURT where it was held that It is made clear that there shall be no recovery of GST on royalty until the Nine Judge Constitution Bench takes a decision. Petition disposed off.

Summary

In the case before the Madras High Court, presided over by Justice Senthilkumar Ramamoorthy, the petitioner challenged an assessment order under the Tamil Nadu Goods and Services Tax Act, 2017. This order imposed GST under the reverse charge mechanism on seigniorage payments made by the petitioner to the government. The respondent, represented by Mr. V. Prasanth Kiran, referenced a recent Division Bench judgment in A. Venkatachalam v. Assistant Commissioner (ST), which provided specific directions regarding similar issues.

The key directives from the referenced judgment include:

1. Petitioners challenging show cause notices must submit objections within four weeks of receiving the order.
2. Authorities are to adjudicate these objections on merit, providing a reasonable hearing opportunity, but must hold off on final orders until a decision by the Nine Judge Constitution Bench on the nature of royalty.
3. No GST recovery on royalty is to occur until the Constitution Bench's decision.
4. Petitioners retain the right to seek redress, including appeals, if aggrieved post-decision.
5. Challenges to notifications or circulars can proceed after the Constitution Bench's outcome.
6. All legal contentions remain open for petitioners post-decision.

Based on these directions, the current writ petition (W.P.No.627 of 2024) was disposed of in alignment with the aforementioned judgment, with no costs awarded, and related miscellaneous petitions were closed.