Since the very issue as to whether GST would be chargeable on minerals on which already royalty has been paid is actively under consideration before a Nine Judges Bench of the Hon’ble Supreme Court, in the present matter, the petitioner has made out a case for interim order. Accordingly, the matter be listed after disposal of earlier writ petition.
In the meantime, there shall be stay of the show cause notice issued to the petitioner.
GST on Royalty --- The petitioner prayed for directions declaring the SCN dated 07.10.2021 for the tax periods July, 2017 to August, 2021, as illegal, arbitrary and contrary to the provisions of the Act, (ii) declare Circular No.164/20/2021-GST, dated 06.10.2021 as arbitrary, irrational, illegal and void. The counsel for the petitioner submitted that he has already paid royalty charges for the minerals extracted, but still, he has been issued SCN. The Hon’ble Supreme Court has passed interim orders staying payment of GST for grant of mining lease/ royalty. The respondent counsel submitted that only show cause notice has been issued. The court observed that since the very issue as to whether GST would be chargeable on minerals on which already royalty has been paid is actively under consideration before a Nine Judges Bench of the Hon’ble Supreme Court and the petitioner has made out a case for interim order.
Held that:- The Hon’ble High Court listed the matter after disposal of Writ Petition and SLP(C) No.37326 of 2017. In the meantime, there shall be stay of the show cause notice dated 07.10.2021.
Since the very issue as to whether GST would be chargeable on minerals on which already royalty has been paid is actively under consideration before a Nine Judges Bench of the Hon’ble Supreme Court, in the present matter, the petitioner has made out a case for interim order. Accordingly, the matter be listed after disposal of earlier writ petition.
In the meantime, there shall be stay of the show cause notice issued to the petitioner.
GST on Royalty --- The petitioner prayed for directions declaring the SCN dated 07.10.2021 for the tax periods July, 2017 to August, 2021, as illegal, arbitrary and contrary to the provisions of the Act, (ii) declare Circular No.164/20/2021-GST, dated 06.10.2021 as arbitrary, irrational, illegal and void. The counsel for the petitioner submitted that he has already paid royalty charges for the minerals extracted, but still, he has been issued SCN. The Hon’ble Supreme Court has passed interim orders staying payment of GST for grant of mining lease/ royalty. The respondent counsel submitted that only show cause notice has been issued. The court observed that since the very issue as to whether GST would be chargeable on minerals on which already royalty has been paid is actively under consideration before a Nine Judges Bench of the Hon’ble Supreme Court and the petitioner has made out a case for interim order.
Held that:- The Hon’ble High Court listed the matter after disposal of Writ Petition and SLP(C) No.37326 of 2017. In the meantime, there shall be stay of the show cause notice dated 07.10.2021.