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TMI Blog2024 (2) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... than. Subsequent thereto, with the introduction of GST, tax was levied on royalty. The same was challenged before the Apex Court. The Hon'ble Supreme Court has granted an interim order with regard to levy of Goods and Service Tax on royalty in Lakhwinder Singh Vs. Union of India Ors. [ 2021 (11) TMI 336 - SC ORDER] . Following directions have been issued: (i) 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. (ii) 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. (iii) It is made clear that there shall be no recovery of GST on royalty until the Nine Judge Constitution Bench takes a decision. (iv) Needless to state that on the matters being decided, the writ petitioners if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 34469, 34470, 34471, 34472, 34473, 34475, 34476, of 2022 and 55, 56, 1180, 1270, 4397, 4398, 4766, 5221, 5223, 5226, 5228, 5229, 5230, 5236, 5238, 5240, 5241, 5243, 5245, 5247, 5248, 5249, 5251, 5266, 5268, 5273, 5276, 5283, 5285,5286, 5287, 5356, 5357, 5358, 5359, 5384, 5600, 5612, 5614, 5616, 5617, 5619, 5620, 5650, 5653, 5657, 5659, 5813, 5816, 5818, 5820, 5822, 5945, 5951, 5954, 5958, 6080, 6085, 6093, 6096, 6102, 6244, 6248, 6251, 6257, 6477, 6482, 6830, 6832, 6836, 6838, 6846, 6847, 6973, 7008, 7011, 7013, 7016, 7014, 7018, 7023, 7024, 7027, 7028, 7255, 7256, 7259, 7260, 7533, 7535, 7540, 7541, 7543, 7544, 7545, 7546, 8108, 8541, 8639, 8640, 8641, 8642, 8644, 8645, 8648, 8651, 8655, 8656, 9242, 9244, 9247, 9249, 9252, 9253, 9256, 9258, 9261, 9262, 9359, 9362, 9365, 9366, 9368, 9372, 9377, 10370, 10371, 10374, 10375, 10377, 10378, 10379, 10380, 10382, 10383, 10612, 10614, 10618, 10619, 10620, 10621, 10624, 10625, 10626, 10627, 10631, 10632,10656, 10707, 10710, 10713, 10715, 10718, 10719, 10720, 10722, 11109, 11130, 11132, 11138, 11141, 11142, 11143, 12490, 12492,12495, 12497, 12499, 12500, 12501, 12502, 12503, 12504, 12506, 12507, 12512, 12515, 13700, 13701, 13703, 13704, 137 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 37 - licensing services for the right to use minerals including its exploration and evaluation . The validity of this notification is under challenge. 5. The Central Board of Indirect Taxes and Customs (CBIC), formerly known as Central Board of Excise and Customs (CBEC) has issued order/circular dated 06.10.2021 in exercise of power under Section 168 of the Central Goods and Services Tax Act, 2017, clarifying that rate of tax leviable on royalty was 18% even prior to G.O.Ms.No.72. The Board has placed reliance on a discussion made in the 45th GST Council Meeting held on 17.09.2021. It has also referred to conflicting rulings of the Authority for Advance Ruling and chosen to follow the view, which provides for levy higher rate even for the period prior to 1st January, 2019. Feeling aggrieved, the Circular dated 06.10.2021 of the Board, in particular paragraph 9 of the same, is challenged as it suffers from error apparent and being contrary to the Entry. 6. In all these Writ Petitions, the primary ground for the levy of Goods and Service Tax on royalty / seigniorage fee is that Royalty is a 'tax' and does not represent 'services'. The challenge is on the premise that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther royalty determined under Sections 9/15(3) of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957, as amended) is in the nature of tax? 2. Can the State Legislature while levying a tax on land under List II Entry 49 of the Seventh Schedule of the Constitution adopt a measure of tax based on the value of the produce of land? If yes, then would the constitutional position be any different insofar as the tax on land is imposed on mining land on account of List II Entry 50 and its interrelation with List I Entry 547 3. What is the meaning of the expression Taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development within the meaning of Schedule VII List II Entry 50 of the Constitution of India? Does the Mines and Minerals (Development and Regulation) Act, 1957 contain any provision which operates as a limitation on the field of legislation prescribed in List II Entry 50 of the Seventh Schedule of the Constitution of India? In particular, whether Section 9 of the aforementioned Act denudes or limits the scope of List II Entry 50? 4. What is the true nature of royalty/dead rent payable on minerals produced/min ..... X X X X Extracts X X X X X X X X Extracts X X X X
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