And Production Limited & Ors vs Directorate General Of Gst
2023 Latest Caselaw 5416 Cal

22.08.2023
    PB
Sl. No.12.


             WPA 19283 of 2023


             M/s. Essar Oil and Gas Exploration
             and Production Limited & Ors.
                        Vs
             Directorate General of GST
             Intelligence, Durgapur Regional
             Unit & Ors.



             Mr. Abhratosh Majumder,
             Mr. Avra Mazumder,
             Mr. Kausheyo Roy,
             Mr. Suman Bhowmik,
             Mr. Samrat Das.
                           ... For the Petitioner.
             Mr. K. K. Maiti,
             Mr. Tapan Bhanja.
                         .......for the respondent nos.1 to 4.

Mr. A. Ray, Mr. T. M. Siddiqui, Mr. T. Chakraborty, Mr. S. Sanyal.

.......for the State.

Heard learned advocates appearing for the

parties.

By this writ petition, petitioner has challenged

the impugned show-cause notice dated 27th December,

2022, issued by the office of the Directorate General of

GST Intelligence (DGGI), asking the petitioner as to

why GST will not be levied on the royalty paid for

mining which is based on a Circular No.164/20/2021-

GST and Service Code 997337 under the GST tariff.

Petitioner also challenges the constitutional validity of

the aforesaid tariff and in support of his such

contention of challenge to constitutional validity, has

relied on several judgments/orders of different High

Courts where interim relief of staying the recovery has

been passed with liberty to the respondent department

to continue with the proceeding. Two of those

decisions are; (a) order dated 13th May, 2022 in WP(C)

No.177 of 2022 by the High Court of Meghalaya and

the decision of the Hon'ble Jharkhand High Court in

the case of Mandhan Minerals Corporation Vs. Union

of India reported in 2022 (64) GSTL 542 (Jhar.).

Mr. Maiti, learned advocate appearing for the

respondents on the contrary has relied on a decision of

the Hon'ble Rajasthan High Court in the case of

Sudershan Lal Gupta Contractor Vs. Union of India

reported in 2022 (66) GSTL 4 (Raj.).

Considering the facts and circumstances of the

case and submission of the parties, I am of the view

that the issue involved in this writ petition is a pure

question of law and relates to constitutional validity of

imposition of tariff in question, and as such this writ

petition cannot be thrown at the motion stage and

deserves adjudication upon exchange of affidavits by

the parties and I am also of the considered view that

the petitioner has been able to make out a prima facie

case for interim order in the matter.

Learned advocate-on-record for the petitioner

shall serve a copy of the writ petition upon the office of

the learned Attorney General and the office of the

learned Advocate General within two weeks.

Let the respondents file affidavit in opposition

within four weeks; petitioner to file reply thereto, if

any, within two weeks thereafter.

In the meantime, the respondent authorities

concerned are restrained from taking any coercive step

of recovery in case of demand, if any, arises out of the

impugned proceedings which the respondents are at

liberty to proceed. Time to file response/reply to the

aforesaid impugned show-cause notice is extended by

four weeks from date.

The matter shall appear for final hearing in the

monthly list of December, 2023.

( Md. Nizamuddin, J.)