GST Recovery on Seigniorage Fees Paused; Objections Invited Pending Constitution Bench Decision on Royalty.

The petitioner contested the GST liability on seigniorage fees and mining lease payments. The Div. Bench directed the petitioner to submit objections within four weeks, with adjudication pending a Nine Judge Constitution Bench decision on royalty. GST recovery on royalty is stayed until then. Petitioners may seek further redress post-decision. The petition was disposed of on similar terms, allowing a reply submission within four weeks, with no costs awarded. Related motions were closed.

---

---

Issues: Assailing the intimation of GST liability on seigniorage fee and mining lease amounts paid to the Government under applicable GST laws.

Judgment Summary:

The petitioner challenged the intimation regarding GST liability on seigniorage fee and mining lease amounts paid to the Government under applicable GST laws. The Division Bench judgment in a related case directed the petitioners to submit objections within four weeks and allowed adjudication after affording a reasonable opportunity to be heard. The Division Bench also decided to keep the orders of adjudication in abeyance until a Nine Judge Constitution Bench decides on the nature of royalty. No recovery of GST on royalty was permitted until the Nine Judge Constitution Bench makes a decision. The petitioners were given the option to redress grievances before the appropriate forum if still aggrieved. The petitioners were allowed to act upon the notification and circular after the outcome of the case pending before the Nine Judge Constitution Bench. All contentions were left open for the petitioners to raise in appropriate proceedings after the decision of the Nine Judge Constitution Bench.

In line with the Division Bench judgment, the current petition was disposed of on similar terms. The petitioner was granted permission to submit a reply to the intimation within a maximum of four weeks from the date of receipt of the order. The petition was disposed of with no costs, and related motions were closed accordingly.

---