2021 (10) TMI 840 - HC - GST

Levy of GST or not - royalty paid for grant of mining lease - HELD THAT - Though, the learned Standing Counsel for the respondents has urged that in the matters before the Supreme Court, an issue regarding constitutionality of Section 174 of the Central Goods and Services Tax Act, 2017 has been raised, but no such pleading has been raised by the petitioner in this petition. The matter requires consideration - List this matter after two months.

Summary

Issues:
Challenge to order on GST levy for mining lease royalty, consideration of Supreme Court order on similar issue, constitutionality of Section 174 of CGST Act not raised in petition.

Analysis:
The petition challenges an order partially allowing the petitioner's appeal against the levy of GST on royalty paid for a mining lease. The petitioner relies on a Supreme Court order in a related case staying the payment of GST for grant of mining lease/royalty. The Standing Counsel for the respondents points out that the constitutionality of Section 174 of the Central Goods and Services Tax Act, 2017 has been raised in Supreme Court cases but not in this petition. However, it is acknowledged that the Supreme Court decision will impact the present case directly.

The Court grants the Standing Counsel three weeks to file a counter affidavit and allows two weeks for a rejoinder affidavit. The case is scheduled for the next hearing after two months. The Court orders a stay on the payment of GST by the petitioner until further notice. It is clarified that any statutory deposit made by the petitioner as per the U.P. GST Act, 2017 need not be refunded during the case proceedings.