GST Assessment on Mining Royalty Payments Upheld, Precedent Confirms Tax Liability Under Existing Judicial Interpretations

Petitioner challenged GST assessment orders on mining royalty payments. HC referenced prior case law (Sudershan Lal Gupta and Shree Basant Bhandar) which upheld GST imposition on royalty. Petitioner's counsel did not contest previous judicial precedents. HC dismissed the writ petition and stay petition, affirming the GST department's demand based on established legal principles.

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Issues involved: Challenge to show cause notice/assessment orders raising demand of GST on royalty paid to Mining Department.

Judgment Summary:

The present writ petition challenges the show cause notice/assessment orders issued by the respondent - GST Department regarding the demand of GST on royalty paid to the Mining Department. The respondent argued that the issue has already been settled in previous cases, specifically in Sudershan Lal Gupta's case and Shree Basant Bhandar Int Udyog's case, where the imposition of GST on royalty was upheld by the Court.

The Division Bench of the Court in Sudershan Lal Gupta's case held that the imposition of GST on royalty by the respondents is justified. The petitioner's counsel did not contest the fact that similar issues have been decided in previous cases by the Court.

Therefore, considering the precedents set in Sudershan Lal Gupta's case and Shree Basant Bhandar Int Udyog's case, the present writ petition is dismissed. Additionally, the stay petition is also dismissed in line with the Court's previous orders.

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