The Rajasthan High Court in the case Rajasthan Granite Mining Association Versus Union of India observed and has upheld that the GST demand on royalty paid to the Mining Department towards mining lease.
The bench comprising of Justice Vijay Bishnoi and Justice Praveer Bhatnagar in the case observed and has relied upon the decision of the Rajasthan High Court, the Jaipur Bench in the case of Sudershan Lal Gupta & Ors. versus Union of India And Ors, wherein the court dismissed the batch of writ petitions challenging the levy of GST on reverse charge basis on royalty of mining extraction.
The petitioner in the plea moved also challenged the show cause notice or the assessment orders which are issued by the respondent, GST Department wherein the demand is raised of GST on royalty paid towards mining lease to the respondent, Mining Department.
Further, it has also been submitted by the department that the issue involved in this writ petition has already been decided by Court vide order dated September, 29, 2022 which is being rendered in the case Shree Basant Bhandar Int Udyog Vs. Union of India & Ors. and other connected writ pleas filed wherein the court relied on the order dated September, 27, 2022 being passed by the Jaipur Bench of this Court in the bunch of writ petitions in the case Sudershan Lal Gupta Vs. Union of India & Ors.
The court in the case also noted that the petitioner being not in a position to dispute the fact that the issue regarding demand of GST on royalty paid towards mining lease to the respondent – Mining Department which has already been decided by the Court.
The counsel, D.D. Thanvi, Amit Vyas appeared for the petitioner.
The counsel, Sandeep Shah represented the respondent.
