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Madras High CourtWP/9192/2024disposed of

R.Thillaikarasan v. The Deputy State Tax Officer,

2024-04-04Honourable Mr Justice Senthilkumar Ramamoorthy6 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 04.04.2024

CORAM

THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY W.P.

Nos.9192 & 9197 of 2024 and W.M.P.Nos.10230, 10231, 10233 & 10234 of 2024 R.Thillaikarasan ... Petitioner in W.P.9192 of 2024 K.Narayanan ... Petitioner in W.P.9197 of 2024 -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 in both WP's PRAYER in W.P.No.9192 of 2024: 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 Notice (Intimation of Tax) of the Respondent dated 03.02.2024 in Form GST DRC-01A in Ref: GSTIN: 33ABYPT2591A1ZD for levy of GST on Seigniorage Fee / Royalty for 1/6

the Financial year 2018-19 to 2022-23, quash the same. PRAYER in W.P.No.9192 of 2024: 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 Notice (Intimation of Tax) of the Respondent dated 29.01.2024 in Form GST DRC-01A in Ref: GSTIN: 33AUKPN9628B1ZK for levy of GST on Seigniorage Fee / Royalty for the Financial year 2017-18 to 2021-22, quash the same. For Petitioner : Mr.V.Sanjeevi in both WP's For Respondent : Mr.C.Harsha Raj, AGP (T) in both WP's ********** COMMON ORDER 2/6

In these writ petitions, the petitioner has assailed the intimation communicating the GST liability under applicable GST laws in respect of seigniorage fee 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 v. Assistant Commissioner (ST), Palladam, in W.P.No.30974 of 2022.

3. Mr.C.Harsha Raj, learned Additional Government Pleader, 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.

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(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 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, these petitions are 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 4/6

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

6. W.P.Nos.9192 and 9197 of 2024 are disposed of on the above terms. No costs. Consequently, W.M.P.Nos.10230, 10231, 10233 and 10234 of 2024 are closed.

04.04.2024 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.

SENTHILKUMAR RAMAMOORTHY,J rna 5/6

W.P.Nos.9192 & 9197 of 2024 and W.M.P.Nos.10230, 10231, 10233 & 10234 of 2024 04.04.2024 6/6