GST on mining lease payments stayed in line with connected batch, with reply permitted pending royalty ruling

GST intimation relating to mining lease payments under the reverse charge mechanism was treated as covered by the same interim arrangement as the connected batch. The petitioner was allowed to file a reply to the intimation within four weeks, and the matter was kept aligned with the pending Supreme Court consideration on the nature of royalty. The document records that earlier directions had permitted adjudication to proceed while keeping the resulting orders in abeyance until the Nine Judge Constitution Bench decides the royalty issue, and the present petition was disposed of on identical terms with consequential proceedings closed.

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Issues: Whether the writ petition challenging the GST intimation on mining lease payments under the reverse charge mechanism should be disposed of on the same terms as the connected batch, with the petitioner being allowed to submit a reply and the matter kept in abeyance pending the decision of the Nine Judge Constitution Bench on the nature of royalty.

Analysis: The petition concerns levy of GST under the Tamil Nadu Goods and Services Tax Act, 2017 on mining lease amounts paid to the Government. The petition relies on the interim protection already operating in the connected batch concerning royalty and mining lease, as well as the earlier Division Bench directions permitting adjudication to proceed but keeping the adjudication orders in abeyance until the Supreme Court decides the issue relating to royalty. Following that course, the Court treated the present petition as covered by the same directions and granted the petitioner time to submit a reply to the intimation.

Conclusion: The writ petition was disposed of on the same terms as the connected batch, with liberty to the petitioner to submit a reply within four weeks and with consequential proceedings closed.

Final Conclusion: The petitioner obtained procedural relief in the form of an opportunity to respond, and the dispute was not finally adjudicated on the taxability issue pending the outcome of the Supreme Court proceedings on royalty.

Ratio Decidendi: Where a connected batch of cases has already been directed to proceed by way of adjudication with protection against immediate recovery pending the Supreme Court's decision on the core issue, a similar writ petition concerning the same levy may be disposed of on identical terms.

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