GST on royalty and seigniorage charges under reverse charge was challenged, with interim suspension granted on the notice.

A writ challenge concerned a show-cause notice proposing GST under the reverse charge mechanism on royalty or seigniorage charges linked to mining lease extraction services. The Court noted that interference at the notice stage is ordinarily limited, but considered the issue because it went to the very incidence of tax on royalty or seigniorage charges. Pending further proceedings, the impugned notice was kept in abeyance by interim suspension.

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Issues: Whether the Court should interfere at the stage of a show-cause notice raising GST liability on royalty or seigniorage charges for mining lease extraction services.

Analysis: The challenge was directed against a show-cause notice proposing tax under the reverse charge mechanism in relation to royalty or seigniorage charges. The Court noted that although interference at the notice stage is ordinarily rare, the core question concerned the very incidence of tax on royalty or seigniorage charges, and therefore the writ petition was entertained. Pending further proceedings, protection was granted by suspending the impugned notice.

Conclusion: The Court entertained the writ petition and granted interim suspension of the impugned show-cause notice.

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