Abeyance of proceedings on GST levy of seigniorage fee pending higher court decision; conditional deposit required.

Assessment and recovery proceedings under GST concerning levy on seigniorage fee/royalty and alleged reverse charge liability are to be kept in abeyance pending determination by the higher court because the legal question of levy is sub judice and the petition raises substantially identical issues to an earlier order; the court applied the principle of maintaining status quo where facts and law mirror pending precedent. As interim relief, the petitioner must provide security by way of a conditional deposit (specified proportion of disputed tax), and the writ is disposed on those terms.

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Issues: (i) Whether the assessment and recovery proceedings arising from GST notices and assessment orders issued for alleged non-registration and non-payment of GST on seigniorage fee/royalty should be kept in abeyance pending the decision of the Hon'ble Supreme Court, and whether interim relief in the form of a conditional deposit is appropriate.

Analysis: The proceedings under challenge arise from assessment and summary orders under the GST enactments concerning levy of GST on seigniorage fee/royalty and alleged non-compliance under the reverse charge mechanism. The question of levy is pending before the Hon'ble Supreme Court and there exists a prior High Court order in closely similar facts directing that proceedings be kept in abeyance until the Supreme Court decides the issue, with an interim condition that the petitioner deposit a portion of the disputed tax as security. The present petition involves substantially identical factual and legal issues and no new legal controversy has been raised that would require a different course of action.

Conclusion: (i) The assessment and recovery proceedings are to be kept in abeyance pending the decision of the Hon'ble Supreme Court on the levy of GST on seigniorage fee/royalty; the petitioner is directed to deposit 10% of the disputed tax as security. The writ petition is disposed of on the same terms as the earlier decision.

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