Recovery of GST on royalty paid on account of excavation sand for brick stayed by HC
Shree Basant Bhandar Int Udyog vs Union Of India in D.B. Civil Writ Petition No. 5678/2022
Facts and Issue of the Case
Learned counsel for the petitioner has submitted that as per the decision of the Hon’ble Supreme Court rendered in the case of India Cement Ltd. Etc. Vs. State of Tamil Nadu Etc., reported in AIR 1990 SC 85, the royalty is separate and distinct from the land revenue and it is not related to the land as a unit, as such, no tax is to be paid upon the royalty.
Observation and Conclusion of the court
Learned counsel for the petitioner has further submitted that the Hon’ble Supreme Court in Special Leave to Appeal (C) No.37326/2017, arising out of judgment of this Court rendered in the case of Udaipur Chamber of Commerce and Industry Vs. Union of India has already stayed payment of service tax for grant of mining lease/royalty.
Issue notice. Issue notice of stay application also, returnable on 5.7.2022.
The Court restrained the respondents from recovery of GST on the royalty paid on account of excavation of sand for brick and stayed the notice dated 15.02.2022 (Annex.5).Basant-Bhandar-Int-Udyog-Vs-Union-of-India-Rajasthan-High-Court