HC granted interim relief from payment of GST for grant of mining lease/royalty 

Ratan Black Stone Vs Union of India (Jharkhand High Court)

Learned counsel for the Respondents submits that earlier, this Court have been pleased to grant stay of recovery of service tax for grant of mining lease / royalty from the petitioners covered under the interim order dated 02.03.2021 passed in the batch of writ petitions led by WPT No. 3878/2020, though interim protection so far as levy of CGST/JGST is concerned, was refused. Learned counsel for the Respondents however do not dispute that the Apex Court has been pleased to grant stay on payment of GST for grant of mining lease/royalty in the case of similarly situated persons.

On consideration of the materials on record placed by the parties and in view of interim protection granted by the Apex Court in Writ Petition (Civil) No. 1076/2021 in the case of M/s Lakhwinder Singh Versus Union of India & others and, that the petitioners herein, lessee of minor mineral, also raised similar issues of levy of GST on royalty and District Mineral Fund Contribution, we deem it proper to grant similar interim relief (s) to the petitioners herein. Accordingly, until further orders, payment of GST for grant of mining lease/royalty by the petitioners, shall remain stayed.

FULL TEXT OF THE JUDGMENT/ORDER OF JHARKHAND HIGH COURT

All the writ petitions are tagged together as common issues relating to levy of goods and service tax under Reverse Charge Mechanism on the amount of Royalty and District Mineral Fund Contribution paid by them to the State of Jharkhand in respect of minor mineral lease are involved in all the writ petitions.

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