The Jharkhand High Court has tagged the instant matter along with W.P (T) No. 432/2021 and analogous cases as it relates to common issue i.e. levy of GST on royalty upon the petitioner who is the lessee of minor minerals in the District of Sahebganj.
The Petitioner, M/s RQS Mining Private Limited, has sought quashing of the show-cause notice issued by theDeputy Commissioner of State Tax, whereby the Commissioner of State Tax, has asked the petitioner to file reply as to why taxes to the tune of Rs. 2,58,577.92 be not levied upon him for the period July 2017 to March 2018 on account of GST on royalty.
The Counsel for the petitioner submitted that the Court passed in a batch of writ petitions led by W.P.(T) No. 432 of 2021 in the case of M/s Mandhan Minerals Corporation v. Union of India and others have been pleased to grant interim protection from levy of GST on royalty. It is submitted that the issue being common, similar interim protection may be granted to the petitioner pending final adjudication.
The Counsel for the Respondent State submits that counter affidavit has already been filed and two weeks’ time is allowed to the counsel for the petitioner to file rejoinder, if necessary.
The Court of Justices Aparesh Kumar Singh and Deepak Roshan observed that “Since this Court has granted interim protection on the levy of GST on mining lease / royalty to similarly situated petitioners vide order dated 20.04.2022 passed in W.P.(T) No. 432 of 2021 and other analogous cases, interim protection in the same manner is being granted to the petitioner herein.”
The Bench further noted that “Following the interim order passed by the Apex Court in the case of M/s Lakhwinder Singh, this Court had been pleased to grant interim protection on levy of GST on mining lease / royalty/DMF. In the background of the legal position that royalty has been considered to be a tax or profit pendre and the issue is pending before the 9 Judge Constitution Bench, we are of the considered view that the petitioners have made out a case for interim protection.”
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