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.
