Rajasthan High Court Upholds GST Demand On Royalty Paid To The Mining Department Towards Mining Lease

The Rajasthan High Court has upheld the GST demand on royalty paid to the Mining Department towards mining lease.

The Bench of Justice Vijay Bishnoi and Justice Praveer Bhatnagar has relied on the decision of the Rajasthan High Court, Jaipur Bench in the case of Sudershan Lal Gupta & Ors. versus Union of India & Ors. in which a batch of writ petitions were dismissed challenging the levy of GST on reverse charge basis on royalty of mining extraction.

The petitioner challenged the show cause notice/assessment orders issued by the respondent, GST Department raising demand of GST on royalty paid to the respondent, Mining Department towards mining lease.

The department submitted that the issue involved in this writ petition has already been decided by Court vide order dated 29.09.2022 rendered in Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and other connected writ petitions while relying on the order dated 27.09.2022 passed by the Jaipur Bench of this Court in the bunch of writ petitions led by Sudershan Lal Gupta Vs. Union of India & Ors.

The court has noted that the petitioner was not in a position to dispute the fact that the issue regarding demand of GST on royalty paid to the respondent - Mining Department towards mining lease has already been decided by the Court.

Case Title: Rajasthan Granite Mining Association Versus Union of India

Citation: D.B. Civil Writ Petition No. 4602/2023

Date: 12/04/2023

Counsel For Petitioner: D.D. Thanvi, Amit Vyas

Counsel For Respondent: Sandeep Shah

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