ALLAHABAD HIGH COURT
Falgungiri Mines …..Appellant
V/s
Union of India and 4 Others …..Respondent
Honble Justice
Shekhar B. Saraf and Vikas Budhwar, JJ.
Date : 31/08/2024
Appearance:
Ishir Sripat, Satyarth Agarwal, Siddharth Agrawal for the Petitioner.
A.S.G.I., C.S.C., Priyanka Midha for the Respondent.
Case Adjourned
Issues Involved :- Issue is related to applicability of GST on the royalty payable by the miners. list this case along with the Writ Tax No. 475 of 2021 on the date fixed therein. In the meantime, the demand of GST on the royalty payable by the petitioners shall remain stayed.
Section: GST on Royalty Payments
Subject: Stay on GST Demand for Royalty on Mining
Matter Involved: The petitioner disputed the demand for GST on royalty payments for mining activities, citing that the Supreme Court is already considering a similar issue in SLP (C) No. 37326 of 2017, where a stay has been granted. The petitioner requested similar relief, pointing out that the issue is also pending before the Allahabad High Court in Writ Tax No. 475 of 2021, which involves identical facts and legal questions.
Held by Court: The court acknowledged that the matter of GST on mining royalty is already under consideration by the Supreme Court and that the payment of GST on such royalty has been stayed in the SLP. Consequently, the court granted a stay on the demand for GST in the present case, pending a final decision. The court directed the filing of counter-affidavits and listed the case along with Writ Tax No. 475 of 2021 for a future date.
Case referred/cited :-
Udaipur Chambers of Commerce and Industry Versus Union of India & Ors. — [2024] 75 TAXLOK.COM 098 (SC) A.D. Agro Foods Pvt. Ltd. Versus Union of India — [2021] 42 TAXLOK.COM 129 (Allahabad)
JUDGMENT
1. Heard learned counsel for the petitioner, Ms. Priyanka Midha, learned counsel appearing on behalf of respondent nos. 2 and 4.
2. It has been informed by the parties that the issue with regard to the fact as to whether GST was to be paid on the royalty as was payable by the miners was engaging the attention of the Supreme Court in SLP (C) No. 37326 of 2017 [2024] 75 TAXLOK.COM 098 (SC). Learned counsel for the petitioners has also stated that in the SLP the payment of the GST on royalty paid for mining had been stayed.
3. Upon hearing learned counsel appearing on behalf of the parties, it appears that at the matter requires consideration and the affidavits are required to be exchanged between the parties.
4. Accordingly, let the counter affidavit be filed within four weeks; rejoinder affidavit if any, within two week thereafter.
5. Similar issue raised in the present petition is already engaging attention of this Court in Writ Tax No. 475 of 2021 [2021] 42 TAXLOK.COM 129 (Allahabad). Accordingly, list this case along with the Writ Tax No. 475 of 2021 on the date fixed therein.
6. In the meantime, for the reasons contained in the leading case being Writ Tax No. 475 of 2021 [2021] 42 TAXLOK.COM 129 (Allahabad), the demand of GST on the royalty payable by the petitioners shall remain stayed.