Case Law Details
P. Saravanan Vs State Tax Officer (Madras High Court)
The case of P. Saravanan Vs State Tax Officer before the Madras High Court revolves around the applicability of GST on mining lease payments made to the government. In the writ petition, the petitioner contested the imposition of GST on the amount paid for the mining lease. Citing Notification No.13/2017 – Central Tax (Rate), which excludes GST on services provided by government bodies such as renting immovable property to business entities, the petitioner argued for exemption.
The petitioner also relied on interim orders by the Supreme Court, particularly in SLP(C) No.37326 of 2017, where a stay was granted not only on royalty but also on the GST pertaining to mining leases. The mention of a pending nine-judge bench hearing further underscored the complexity and significance of the issue.
Drawing attention to a Division Bench Judgment, the counsel highlighted relevant cases like Venkatachalam v. Assistant Commissioner (ST), Palladam. This batch of cases provided additional context, shaping the legal landscape surrounding GST on mining activities.
In response, Mrs. K. Vasanthamala, learned Government Advocate, acknowledged the petitioner’s stance. The Division Bench of the Madras High Court issued specific directions, emphasizing the submission of objections within four weeks concerning show cause notices related to GST on mining leases.
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