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2024 (11) TMI 375 - HC - GST


Issues:
1. Whether GST can be levied on royalty paid by a Mineral Concession Holder for any mining concession granted by the State.

Analysis:
The petition sought the quashing of various notifications and demands related to GST on royalty paid by a Mineral Concession Holder. The primary issue was whether GST could be imposed on such royalty payments. The petition relied on a previous judgment by the Supreme Court in India Cement Ltd.'s case, which had declared royalty itself as a tax. However, this argument was countered by a subsequent judgment by a Nine-Judge Bench in Mineral Area Development Authority v. M/s Steel Authority of India, which clarified that royalty is not a tax. Therefore, it was determined that the respondents were legally entitled to levy GST on royalty paid by mineral concession holders for mining concessions granted by the State.

The Court noted that the demand for GST on royalty had been stayed previously, but the subsequent Supreme Court ruling clarified the legal position. Consequently, the Court upheld the notices and summons issued by the respondents, dismissing the petition and any pending applications. The parties were directed to bear their own costs in the matter.

In conclusion, the judgment clarified the legal standing regarding the levy of GST on royalty paid by Mineral Concession Holders for mining concessions. The decision was based on the interpretation of relevant Supreme Court judgments and established legal principles.

 

 

 

 

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