2024 (10) TMI 1423 - HC - GST

Imposition of GST on reverse charge mechanism on seigniorage fee, lease charges and payments made to the District Mineral Fund (DMF) - payment of interest and penalty - HELD THAT - As decided in recent judgment A.Venkatachalam 2024 (2) TMI 488 - MADRAS HIGH COURT in the cases, where the challenge is made to the show cause notices, the writ petitioners shall submit their objections / representations within a period of four weeks from the date of receipt of a copy of this order and upon receipt of the objections / representations from the write petitioners, the authority concerned shall proceed with the adjudication, on merits and in accordance with law, after affording reasonable opportunity of being heard to the petitioners. The orders of adjudication shall be kept in abeyance until the Nine Judge Constitution Bench decides the issue as to the nature of royalty. Thus, as it is made clear that there shall be no recovery of GST on royalty until the Nine Judge Constitution Bench takes a decision. These petitions are liable to be disposed of on the same terms in so far as the impugned assessment orders pertain to the imposition of interest and penalty on seigniorage fee, lease charges and DMF payments. In respect of all other aspects, the impugned assessment orders are not interfered with.

Summary

The petitioner challenged assessment orders on GST imposition. The court referred to a recent judgment and directed that no GST on royalty be recovered until a Nine Judge Constitution Bench decides. The petitions were disposed of accordingly, with no costs.