Mining Royalty GST Challenge: Petitioner to Reply in 4 Weeks, Implementation Paused Pending Supreme Court Decision.

The HC disposed of the writ petitions challenging GST demands on mining royalties, directing the petitioner to submit a reply within four weeks. The respondent must adjudicate on merits but hold implementation pending the Supreme Court's decision. The HC followed Division Bench directions, with no costs awarded and related petitions closed.

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Issues:
Challenge to GST demand on royalty payable for mining of minerals. Prematurity of the writ petitions.

Analysis:
The petitioner challenged the notices seeking GST on the royalty paid to the Government for mining minerals. The petitioner argued that the issue is pending before the Supreme Court in another case. The counsel relied on a recent development in the Supreme Court, requesting interim relief until the Supreme Court's decision. On the other hand, the respondent's counsel referred to a Division Bench decision of the High Court, which directed submission of objections within four weeks and stayed the adjudication pending a decision by a Nine Judge Constitution Bench on the nature of royalty.

The respondent contended that the writ petitions were premature as the petitioner had not responded to the impugned notice. The judge considered the arguments from both sides and decided to dispose of the petitions following the directions given by the Division Bench in a previous case. The petitioner was directed to file a reply within four weeks, and the respondent was instructed to adjudicate the case on merits but to keep the implementation of the order in abeyance until further orders from the Supreme Court.

The judge concluded by disposing of the writ petitions with the specified directions, emphasizing that the implementation of the order would be on hold pending the Supreme Court's decision, as directed by the Division Bench. No costs were awarded, and connected Miscellaneous Petitions were closed.

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