Authority: Madurai Bench, Madras High Court
Order Date: 15 July 2024
Case Overview
- Petitioner: G.V. Granites, represented by partner P. Velusamy, filed W.P.(MD) No.11649 of 2024 and W.M.P.(MD) No.10390 of 2024 seeking certiorari to quash the order dated 22-12-2023 passed in Appeal A.No.52/2022-GST-TRY (GST) that confirmed levy of service tax on its mining activity.
- Respondents: Additional Commissioner (Appeals), Office of the Commissioner of GST and Central Excise (Coimbatore, Trichy Circuit) and Superintendent of GST and Central Excise, Karur V Range.
- The petition was listed for reporting compliance of an order dated 11-06-2024, but the Court noted that the issue is pending before the Supreme Court. It referred to directions issued by a Division Bench on 08-01-2024, which were based on a Supreme Court order dated 04-01-2021 in Writ Petition (Civil) No.1076 of 2021, concerning the nature of royalty and GST recovery.
- The directions stipulated that objections to show‑cause notices must be filed within four weeks, adjudication shall be on merits, GST on royalty shall remain in abeyance until the nine‑judge Constitution Bench decides, and no GST recovery shall occur on royalty pending that decision.
Final Outcome
- The Court held that the impugned order confirming levy of service tax on the petitioner’s mining activity shall be kept in abeyance.
- The writ petition is allowed. The petitioner is granted liberty to file a statutory appeal before the Appellate Commissioner within 30 days of receiving a copy of this order, with no requirement for pre‑deposit, as the Supreme Court has stayed GST recovery on mining lease royalty.
- The Appellate Commissioner shall dispose of the appeal subject to the final outcome of the Supreme Court proceedings.
- No costs are awarded and the connected miscellaneous petition is closed.
Topics: GST, Royalty, Mining