High Court Clarifies GST Notice Procedure for Quarry Operations, Directs Objection Submission and Compliance with Supreme Court Guidance

HC ruled that GST notice for seigniorage fee in quarry operations is procedural. Following SC's stay on GST for mining leases, the court directed petitioner to submit objections within 30 days and respondents to consider them in line with SC's judgment. Status quo maintained, with no costs awarded to either party.

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Issues:
Challenge to impugned notice for GST payment on seigniorage fee for quarry operations.

Analysis:
The petitioner participated in a tender process for quarry operations and was granted a lease for five years. The respondents are now demanding GST payment on the seigniorage fee paid by the petitioner. The petitioner argues that the issue of levying GST on seigniorage fee is pending before the Supreme Court and various High Courts. The petitioner also mentions a stay granted by the Apex Court on GST payment for mining leases, which has been followed by other courts, including this one. The petitioner challenges the issuance of the impugned notice as improper.

The Government Advocate argues that the seigniorage charges paid by the petitioner constitute a supply of services under the SGST Act, 2017. The notice was sent to the petitioner for non-payment of GST, and the petitioner failed to respond or attend hearings. The notice stated that if objections were not filed within 15 days, assessment would be made under the GST Act, 2017, with penalties and interest levied. The Government Advocate emphasizes that the notice is a procedural step, and the petitioner has the opportunity to file objections and supporting documents for consideration by the State Tax Officer.

The court notes that the Supreme Court has granted a stay on GST payment for mining leases, which has been consistently followed by various courts. The impugned order is deemed as a notice, and the petitioner is directed to appear before the respondents to submit objections with necessary documents within 30 days. The second respondent is instructed to consider the objections following the Supreme Court's judgment. Until then, a status quo is to be maintained by the respondents. The writ petition is disposed of with no costs, and the connected miscellaneous petition is closed.

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