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2023 (7) TMI 1056 - HC - GSTSeeking stay on recovery of GST for grant of mining lease / royalty / DMF from the petitioner - Entry 17 (viii) of the Table in Notification No. 11/2017 CT (Rate) dated 28.06.2017 (Annexure-5) as amended vide Notification No. 27/2018-CT (Rate) dated 31.12.2018 - HELD THAT - In the case of M/S. MANDHAN MINERALS CORPORATION AND OTHERS VERSUS 1. UNION OF INDIA THROUGH THE SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, GOVERNMENT OF INDIA NEW DELHI, DIRECTOR GENERAL OF G.S.T. INTELLIGENCE, REGIONAL UNIT, JAMSHEDPUR, ADDITIONAL DIRECTOR, G.S.T. INTELLIGENCE, REGIONAL UNIT, JAMSHEDPUR, SUPERINTENDENT (ADJUDICATION) , CENTRAL GOODS AND SERVICE TAX, DHANBAD 2022 (4) TMI 1296 - JHARKHAND HIGH COURT , this court has been pleased to stay the recovery of GST for grant of mining lease / royalty / DMF from the petitioner till further orders. Since in the present writ petition also, same issue of levy of GST on royalty is involved, case of the petitioner shall be governed by the interim order passed in M/S. MANDHAN MINERALS CORPORATION. Let this matter be listed along with W.P (T) No. 432/2021.
Issues involved:
The issue involves the levy of GST on royalty in respect of Financial Years 2017-2018 to 2021-2022, concerning a petitioner who is a lessee of minor minerals in the district of Bokaro. The petitioner seeks interim protection similar to that granted in a batch of writ petitions led by W.P (T) No. 432/2021. Summary of Judgment: Issue 1 - Levy of GST on royalty: The petitioner challenged the adjudication order passed under section 73 of JGST Act, 2017 holding them liable to pay GST on royalty for the mentioned financial years. An interim order dated 20.04.2022 stayed the recovery of GST for grant of mining lease/royalty/DMF from the petitioner until further orders. The court allowed three weeks for the CGST and State to file a counter affidavit and an additional one week for the petitioner to file a reply. Issue 2 - Interim Protection: The court noted that the case of the petitioner regarding the levy of GST on royalty aligns with the interim order passed in W.P (T) No. 432/2021. The interim order granted protection on the levy of GST on mining lease/royalty/DMF until further orders, while allowing the Revenue to conduct and complete assessment proceedings. Similar interim protection was granted in other cases challenging the levy of service tax on royalty/DMF, and those cases were also to be governed by the interim order dated 02.03.2021. Conclusion: The matter was to be listed along with W.P (T) No. 432/2021 for further proceedings, maintaining the stay on the recovery of GST for grant of mining lease/royalty/DMF until further orders. The court emphasized the interim protection granted and the pending legal position regarding royalty as a tax or profit pendre.
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