Rainbow Infrastructure Vs Union of India & Ors. (Gujarat High Court)
In the case of Rainbow Infrastructure vs. Union of India & Ors., the Gujarat High Court addressed a petition concerning a show cause notice issued under Section 74 of the Gujarat Goods and Services Tax Act, 2017. The notice and subsequent order were issued for the levy of GST on the royalty payments made by the petitioner for a quarry lease granted by the State Government. The petitioner argued that the GST levied on the royalty was inappropriate, especially since similar cases are pending before the Court, including Special Civil Application No. 11563 of 2023 and related matters.
The Gujarat High Court acknowledged the pending issues and issued a notice for a hearing set for 30.01.2025. Meanwhile, the Court granted an interim relief by staying any coercive action against the petitioner, ensuring that no further punitive steps would be taken during the pendency of the petition. The case will be heard alongside the allied matters, with direct service through e-mail allowed to expedite communication. The Court’s decision in this case could have broader implications for how GST is applied to royalty payments in the context of quarry leases contracted with the State Government.
