GST Dispute: Mining Lease Fees Challenged, Petitioners Granted Four Weeks to Submit Objections Under Existing Assessment Proceedings

HC ruled on GST liability challenge for seigniorage fee and mining lease amounts. Petitioners were allowed to submit objections within four weeks. Assessment proceedings on other notice issues could continue. The court followed precedent from a prior Division Bench judgment, providing a structured approach to resolving the GST liability dispute without definitively settling the core legal question.

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Issues involved:
Assailing the summons, intimation, or show cause notice regarding GST liability on seigniorage fee and mining lease amounts paid to the Government under applicable GST laws.

Summary:

Issue 1: Challenge to GST liability on seigniorage fee and mining lease amounts

The petitioners challenged the communication of GST liability on seigniorage fee and mining lease amounts paid to the Government. They relied on Notification No.13/2017 - Central Tax (Rate) and interim orders of the Supreme Court granting a stay on royalty and mining lease issues pending before a nine-judge Constitution Bench.

Issue 2: Division Bench Judgment and Directions

Counsel referred to a Division Bench Judgment in A.Venkatachalam v. Assistant Commissioner (ST), Palladam, where certain directions were issued. The directions included submitting objections within four weeks, adjudication to proceed after objections, no recovery of GST on royalty until the Constitution Bench decision, and keeping contentions open for future proceedings.

Issue 3: Disposition of Petitions

In light of the Division Bench Judgment, the petitions were disposed of on similar terms regarding the seigniorage fee or mining lease issues. Petitioners were allowed to respond to the notices within four weeks, while assessment proceedings on other issues mentioned in the notices could proceed as per the law.

Conclusion:

The petitions were disposed of in accordance with the Division Bench Judgment terms, allowing petitioners to respond to the notices within four weeks. Certain petitions were closed, and no costs were awarded in the matter.

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