2024 (8) TMI 192 - HC - GST

Levy of GST on royalty paid to the Government - HELD THAT - It is noticed that the assessee has been permitted to file their replies. The Authorities have been asked to keep adjudication in abeyance until the Nine Judges Constitutional Bench of the Hon ble Supreme Court decides the case. These Writ Petitions are disposed of by directing the respondent to keep the recovery abeyance, pending further orders of the Hon ble Supreme Court.

Summary

Issues:
Guidelines on show cause notice, pending Supreme Court decision on GST levy on royalty, abeyance of adjudication, recovery abeyance, implications of Supreme Court decision on recovery.

Analysis:
The judgment pertains to the disposal of five Writ Petitions based on guidelines issued in a previous Division Bench order regarding a case involving the levy of GST on royalty paid to the Government. The authorities have been directed to keep the adjudication in abeyance until a Nine Judges Constitutional Bench of the Supreme Court decides the case. The petitioner approached the court after the impugned orders were passed, leading to the direction for the respondent to keep the recovery abeyance pending further orders from the Supreme Court.

The judgment emphasizes that if the levy is upheld by the Supreme Court, the respondent can proceed against the petitioner for tax recovery. However, if the Supreme Court rules against the revenue, the impugned order will be considered quashed from the date of the Supreme Court's decision. The Writ Petitions are disposed of with these directions, and no costs are imposed. The connected miscellaneous petitions are also closed as a result of this judgment.