Qamrunisa v. The State Tax Officer (Fac),

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 21.02.2024

CORAM

THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY W.P.

No.3988 of 2024 and W.M.P.No.4302 of 2024 Mrs.Qamrunisa ... Petitioner -vsThe State Tax Officer (FAC) Roving Squad - 2, Hosur Intelligence Division, Hosur.

... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorari, calling for the records on the files of the Respondent herein in Notice No.3/23-2 and quash the impugned proceeding dated 27.12.2023.

For Petitioner : Mr.B.Raveendran For Respondent : Mr.V.Prasanth Kiran, GA (T) ********* 1/5

ORDER

By this writ petition, the petitioner assails an intimation issued under applicable GST laws in relation to the imposition of GST under the reverse charge mechanism on the seigniorage paid by the petitioner to the Government.

2. Mr.V.Prasanth Kiran, learned Government Advocate, accepts notice on behalf of the respondent. He has placed on record the recent judgment of the Division Bench of this Court in a batch of writ petitions, A.Venkatachalam v. Assistant Commissioner (ST), Palladam II Assessment Circle, Palladam, W.P.Nos.30974 of 2022 batch. In the said judgment, the following directions were issued at paragraph 9 thereof:

"9. In these circumstances, we deem it fit and appropriate to issue the following directions:

(i) In the cases, where the challenge is made to the show cause notices, the writ petitioners shall submit their objections / representations 2/5

within a period of four weeks from the date of receipt of a copy of this order.

(ii) Upon receipt of the objections / representations from the writ petitioners, the authority concerned shall proceed with the adjudication, on merits and in accordance with law, after affording reasonable opportunity of being heard to the petitioners. However, the orders of adjudication shall be kept in abeyance until the Nine Judge Constitution Bench decides the issue as to the nature of royalty.

(iii) It is made clear that there shall be no recovery of GST on royalty until the Nine Judge Constitution Bench takes a decision. (iv) Needless to state that on the matters being decided, the writ petitioners if still aggrieved, shall redress their grievance(s), if any, before the appropriate forum, including by filing appeal(s). (v) Insofar as the challenge to the notification as well as the circular, it is open to the writ petitioners to act upon, after the outcome of the case pending before the Nine Judge Constitution Bench. (vi) It is also made clear that all the contentions are left open for the 3/5

writ petitioners to raise in appropriate proceedings, after the outcome of the decision of the Nine Judge Constitution Bench."

3. In view of the above judgment, this petition is liable to be disposed of on the same terms. Accordingly, W.P.No.3988 of 2024 is disposed of in terms of directions issued in paragraph 9 of A.Venkatachalam v. Assistant Commissioner. No costs. Consequently, W.M.P.No.4302 of 2024 is closed.

21.02.2024 rna Index : Yes / No Internet : Yes / No To The State Tax Officer (FAC) Roving Squad - 2, Hosur Intelligence Division, Hosur.

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SENTHILKUMAR RAMAMOORTHY,J rna and W.M.P.No.4302 of 2024 21.02.2024 5/5