Case Law Details
Marginal M Sand Vs State Tax Officer (Madras High Court)
The writ petitions challenged assessment orders dated 28.03.2024 and 12.06.2024 relating to the assessment years 2018-19 to 2021-22.
The dispute concerned the levy of GST on royalty payable to the Government. The impugned assessment orders confirmed the GST demand, although the recovery proceedings had initially been kept in abeyance.
The Court noted, however, that recovery proceedings had subsequently been initiated and part of the tax had already been recovered after the assessment orders were passed. It further observed that the issue regarding the levy of GST on royalty was pending before the Supreme Court in Udaipur Chambers of Commerce and Industry and others Vs. Union of India and others.
Considering the pendency of the issue before the Supreme Court, the Madras High Court disposed of the writ petitions with a direction to await the Supreme Court’s decision. It ordered that all recovery proceedings shall remain in abeyance until further orders.
The Court also granted liberty to the petitioner to keep the issue alive by filing a statutory appeal before the Appellate Commissioner within 30 days from the date of receipt of the order. Although the limitation period had expired, the Court directed the Appellate Commissioner to entertain the appeal without reference to limitation and to await the Supreme Court’s decision on the issue.
Accordingly, the writ petitions were disposed of without costs, and the connected miscellaneous petitions were closed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mr.R.Suresh Kumar, learned Additional Government Pleader takes notice for the respondents.
2. These writ petitions have been filed challenging the respective impugned orders dated 28.03.2024 and 12.06.2024 passed for the assessment years 2018-2019 to 2021-2022.
3. The dispute in these writ petitions pertains to the levy of GST on royalty payable to the Government. The impugned orders have confirmed the demand, however, the recovery proceedings are kept in abeyance.
4. However, it is noticed that recovery has been initiated and part of the tax has also been recovered after the passing of the impugned orders on the above-mentioned dates. The issue is regarding the GST payable on the royalty is now the subject matter of appeal before the Hon’ble Supreme Court in the case Udaipur Chambers of Commerce and Industry and others Vs. Union of India and others.
5. Considering the same, these writ petitions are disposed of to await for the orders of the Hon’ble Supreme Court in the aforesaid case. Pending further orders, all the recovery proceedings shall be kept in abeyance.
6. However, liberty is granted to the petitioner to keep the issue alive by filing a statutory appeal before the Appellate Commissioner within a period of 30 days from the date of receipt of a copy of this order. Since limitation has expired, the appellate Commissioner shall entertain the appeal without reference to limitation and shall await for the orders of the Hon’ble Supreme Court. No costs. Consequently, the connected miscellaneous petitions are closed.
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