2024 (10) TMI 1442 - HC - GST

GST liability under applicable GST laws in respect of seigniorage fee paid by the petitioner to the Government - Relevancy of decision made by a Nine Judge Constitution Bench on royalty - HELD THAT - As decided in TVL. A. VENKATACHALAM VERSUS THE ASSISTANT COMMISSIONER (ST) 2024 (2) TMI 488 - MADRAS HIGH COURT 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. Upon receipt of the objections / representations from the writ 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. However, the orders of adjudication shall be kept in abeyance until the Nine Judge Constitution Bench decides the issue as to the nature of royalty. It is made clear that there shall be no recovery of GST on royalty until the Nine Judge Constitution Bench takes a decision. Needless to state that on the matters being decided, the writ petitioners if still aggrieved, shall redress their grievance(s), if any, before the appropriate forum, including by filing appeal(s). Insofar as the challenge to the notification as well as the circular, it is open to the writ petitioners to act upon, after the outcome of the case pending before the Nine Judge Constitution Bench. In view of the said judgment, this petition is liable to be disposed of on the same terms. Consequently, the petitioner is permitted to submit his reply to the intimation with in a maximum period of four weeks from the date of receipt of a copy of this order.

Summary

The petitioner challenged the GST liability on seigniorage fee paid to the Government. The court directed the petitioner to submit objections within four weeks. Adjudication on the objections will be kept on hold until a decision is made by a Nine Judge Constitution Bench on royalty. No GST recovery on royalty until the decision. Petitioner can raise contentions in appropriate proceedings after the decision. Petitioner allowed to reply to the intimation within four weeks. Case disposed of with no costs.