2025 (1) TMI 717 - HC - GST

MP HC Allows Withdrawal of Petition Challenging GST on Royalties; Petitioner to Approach Relevant Authority for Resolution.

The MP HC disposed of the petition challenging a GST demand notice on royalty payments. The petitioner sought to quash the notice and declare GST ... Seeking withdarwal of petition - Non-payment of GST on royalty payments for the period 2018-19 to 2024-25 - HELD THAT:- The petitioner seeks withdrawal of this petition to approach the concerned authority in response to letter dated 07.11.2024 and raise all the grounds as per law. The same shall be taken care of by the authority concerned and ensure appropriate consequential follow up action as per law. Petition disposed off. In the case before the Madhya Pradesh High Court, the petitioner sought relief under Article 226 of the Constitution of India, challenging a demand notice dated November 7, 2024, issued by the Assistant Commissioner of the State Commercial Tax Circle, Ashoknagar, M.P. The notice demanded payment of GST on royalty payments for the period from 2018-19 to 2024-25. The petitioner requested the court to quash the notice, declare GST inapplicable on royalty payments for mining leases until a Supreme Court decision, and stay recovery proceedings.Justice Anand Pathak noted that the petitioner was advised to pay GST on the escaped turnover and royalty, and if the petitioner approached the concerned authority, appropriate proceedings, including a show-cause notice, would be initiated. The counsel for the State indicated that the petitioner could approach the concerned authority to proceed in accordance with the law.Subsequently, the petitioner's counsel sought to withdraw the petition to approach the relevant authority and raise all legal grounds. The court disposed of the petition, allowing the petitioner to pursue the matter with the concerned authority, which would ensure appropriate follow-up action as per the law.