S.Madhu v. The Deputy State Tax Officer
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.03.2024
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY W.P.
No.5214 of 2024 and W.M.P.Nos.5729 & 5732 of 2024 S.Madhu, Proprietor of Tvl. Mahalakshmi Blue Metal, Door No.12, Eden Garden, Thalli Road, Hosur, Hosur Taluk, Krishnagiri District.
... Petitioner -vsThe Deputy State Tax Officer, Intelligence, Hosur Division, Office of the Joint Commissioner (ST) (Intelligence), 3/47, Sapthagiri Complex, Commercial Taxes Building, 2nd Floor, Gandhi Nagar, Near Five Star Petrol Bunk, Hosur 635 109.
... Respondent PRAYER: Writ Petition filed under Article 226 of the Constitution of India, pleased to issue a Writ of Certiorari, calling for the records relating to the impugned Notice of the respondent dated 29.01.2024 1/7
in Form GST DRC-01A in Ref GSTIN 33AFLPM0649H1ZG, for levying GST on the Seigniorage fee / Royalty paid for quarrying and transporting mineral for the financial year 2017-18 to 2022-23, quash the same.
For Petitioner : Mr.V.Sanjeevi For Respondent : Mr.V.Prasanth Kiran, GA (T) **********
ORDER
In this writ petition, the petitioner has assailed the intimation, communicating the GST liability under applicable GST laws in respect of both seigniorage fee and mining lease amounts paid by the petitioner to the Government.
2. Learned counsel placed for consideration the Division Bench Judgment in a batch of cases where the lead case is A.Venkatachalam 2/7
v. Assistant Commissioner (ST), Palladam, in W.P.No.30974 of 2022.
3. Mr.Prasanth Kiran, learned Government Advocate, accepts notice for the respondent.
4. The Division Bench of this Court issued the following directions at paragraph 9 of the judgment:
"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 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 3/7
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 writ petitioners to raise in appropriate proceedings, after the outcome of the decision of the Nine Judge Constitution Bench."
5. In view of the said judgment, this petition is liable to be disposed of on the same terms. Consequently, in this case, the petitioner is permitted to submit his reply to the intimation within a 4/7
maximum period of four weeks from the date of receipt of a copy of this order.
6. W.P.No.5214 of 2024 is disposed of on the above terms. No costs. Consequently, W.M.P.Nos.5729, 5732 of 2024 are closed. 04.03.2024 (1/4) rna Index : Yes / No Internet : Yes / No To The Deputy State Tax Officer, Intelligence, Hosur Division, Office of the Joint Commissioner (ST) (Intelligence), 3/47, Sapthagiri Complex, Commercial Taxes Building, 2nd Floor, Gandhi Nagar, Near Five Star Petrol Bunk, Hosur 635 109.
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SENTHILKUMAR RAMAMOORTHY,J rna and W.M.P.Nos.5729, 5732 of 2024 6/7
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