Star India Industries Vs State of Jharkhand (Jharkhand High Court)
The Jharkhand High Court heard a writ petition challenging an order dated 06.06.2023 for the tax period 2019–20, along with the summary of show cause notice in Form GST DRC-01 dated 03.05.2023. The petitioner sought quashing of the demand levying GST on royalty and District Mineral Fund contributions paid to the State of Jharkhand under a mining lease for stone boulders. It was contended that no GST was leviable on such payments and that royalty could not be treated as consideration for any alleged service related to assignment or licensing of mineral rights.
The petitioner also sought declarations restraining the authorities from demanding GST on royalty and District Mineral Fund contributions and submitted that the issue was connected to an earlier pending writ petition.
The respondents opposed the writ petition, arguing that the impugned order was appealable and that disputed questions of fact were involved, which ought to be adjudicated by the appellate authority.
After hearing both sides, the Court noted that a statutory appeal was available against the impugned order. Holding that the petitioner had approached the Court without exhausting the alternative remedy, the Court declined to entertain the writ petition. Without expressing any opinion on merits, the writ petition was disposed of with liberty to the petitioner to pursue the appropriate remedy before the competent authority in accordance with law.
