Guruvayurappan Blue Metal Vs State Tax Officer (Madras High Court)
Summary: The Madras High Court disposed of writ petitions challenging orders dated 11.11.2025 passed under the GST enactments concerning levy of GST on seigniorage fee/royalty for quarrying and transporting mines and minerals under the Reverse Charge Mechanism (RCM). The petitioner had neither obtained GST registration nor paid GST on royalty/seigniorage fees and had also not made contributions to the District Mineral Foundation Trust (DMFT). The petitioner relied on an earlier decision of the High Court in Pichandhi, Proprietor of Sri Murugan Ready Mix Concrete and Blue Metal Industries v. Deputy State Tax Officer, where similar proceedings relating to GST on royalty for quarrying and transportation of minerals were kept in abeyance because the issue was pending before the Supreme Court. In that earlier case, the Court directed the authorities to await the Supreme Court’s decision while requiring the petitioner to deposit 10% of the disputed tax as security. Observing that the facts in the present matter were almost identical, the Court held that the earlier order would equally apply to these petitions. Accordingly, the writ petitions were disposed of on the same terms, with no order as to costs, and connected miscellaneous petitions were closed.
