M/S Central India Stone Mines vs The Union Of India
2021 Latest Caselaw 2877 Chatt

                        HIGH COURT OF CHHATTISGARH, BILASPUR
                                     Order Sheet
                                            WPT No. 212 of 2021
                         M/s Central India Stone Mines Versus The Union of India



25.10.2021          Mr. Ashish Surana, Advocate for the petitioner.
                    Mr. Manish Sharma, Standing Counsel for the respondents.

Learned counsel for the petitioner submits that petitioner is engaged in the business of mining of Dolomite on the lands leased out by the State Government. Petitioner is paying royalty on the extracted Dolomite. Respondents issued notice for levy of service tax on the amount of payments made by the petitioner towards royalty which is illegal. This issue was considered by seven Member Bench of Hon'ble Supreme Court and the royalty has been held to be tax, hence royalty cannot be treated as value of service for the purpose of levying service tax. Co- ordinate Bench of this Court has passed interim order in WPT No.110 of 2019 considering the judgment passed by Hon'ble Supreme Court in case of Mineral Area Development Authority and Others v. Steel Authority of India and Others reported in (2011) 4 Supreme Court Cases 450, granted interim relief to petitioner therein, hence petitioner may also be protected by granting similar interim order in his favour.

Learned counsel for respondents submits that initially notice was issued to the petitioner for payment of service tax in the year 2019 which was not put to challenge. He prays for short time to file reply to the application for grant of interim relief and make his submission.

As prayed by learned counsel for the respondents, list this case on 01.11.2021.

Sd/-

(Parth Prateem Sahu) Judge

Yogesh