Interim stay on GST show cause notice for minerals granted pending Supreme Court ruling on royalty-linked taxability.

GST liability on minerals where royalty has already been paid was noted to be under active consideration before a Nine Judges Bench of the Supreme Court. In view of that pending issue and the grant of similar interim protection in connected matters, the HC found a prima facie case for interim relief. It stayed the impugned show cause notice until the Supreme Court decides the issue, while keeping the writ petition pending.

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Issues: Whether interim protection should be granted by staying the show cause notice demanding GST on minerals after royalty had already been paid, pending consideration of the issue before the Supreme Court.

Analysis: The issue whether GST is chargeable on minerals for which royalty has already been paid was stated to be under active consideration before a Nine Judges Bench of the Supreme Court. In that context, and noting that similar interim protection had been granted in connected matters, the Court found that the petitioner had made out a case for interim relief. The Court therefore directed that the impugned show cause notice be stayed until the Supreme Court proceedings are decided, while keeping the writ petition pending.

Conclusion: Interim stay of the impugned show cause notice was granted in favour of the petitioner.

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