GST Royalty Levy Suspended: Tax Authorities Halt Proceedings Awaiting Landmark Supreme Court Constitutional Bench Ruling

HC disposed of five writ petitions involving GST royalty levy, directing tax authorities to suspend adjudication and recovery proceedings pending Supreme Court's Nine Judges Constitutional Bench decision. If SC upholds levy, recovery can proceed; if rejected, impugned orders will be quashed. No costs imposed, connected petitions closed.

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Issues:
Guidelines on show cause notice, pending Supreme Court decision on GST levy on royalty, abeyance of adjudication, recovery abeyance, implications of Supreme Court decision on recovery.

Analysis:
The judgment pertains to the disposal of five Writ Petitions based on guidelines issued in a previous Division Bench order regarding a case involving the levy of GST on royalty paid to the Government. The authorities have been directed to keep the adjudication in abeyance until a Nine Judges Constitutional Bench of the Supreme Court decides the case. The petitioner approached the court after the impugned orders were passed, leading to the direction for the respondent to keep the recovery abeyance pending further orders from the Supreme Court.

The judgment emphasizes that if the levy is upheld by the Supreme Court, the respondent can proceed against the petitioner for tax recovery. However, if the Supreme Court rules against the revenue, the impugned order will be considered quashed from the date of the Supreme Court's decision. The Writ Petitions are disposed of with these directions, and no costs are imposed. The connected miscellaneous petitions are also closed as a result of this judgment.

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