M/S Oil India Limited vs The Union Of India And 4 Ors
2021 Latest Caselaw 2680 Gua

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GAHC010130332021




                      THE GAUHATI HIGH COURT
  (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

                        Case No. : I.A.(Civil)/1313/2021

         M/S OIL INDIA LIMITED
         DULIAJAN, DIBRUGARH, ASSAM, 786602
         THROUGH ITS AUTHORISED REPRESENTATIVE SOMNATH GUPTA, DGM (F
         AND A) PIPELINE HEAD QUARTER, OIL INDIA LTD. NARENGI, GUWAHATI



         VERSUS

         THE UNION OF INDIA AND 4 ORS.
         THROUGH SECRETARY (REVENUE), DEPTT. OF REVENUE MINISTRY OF
         FINANCE, NORTH BLOCK, NEW DELHI-110001.

         2:CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
          DEPTT. OF REVENUE MINISTRY OF FINANCE
          NORTH BLOCK
          NEW DELHI-110001.

         3:THE COMMISSIONER CENTRAL GOODS AND SERVICES TAX AND
         EXCISE

          DIBRUGARH GST COMMISSIONERATE
          LANE F
          WEST MILAN NAGAR
          DIBRUGARH
          ASSAM-786003.

         4:THE SUPERINTENDENT OF ASSAM GOODS AND SERVICES TAX AND
         ASSAM VAT

          NAHARKATIA-1
          NAHARKATIA MAIN ROAD
          ASSAM.
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            5:THE COMMISSIONER OF TAXES
            ASSAM GOODS AND SERVICES TAX AND ASSAM VAT

             KAR BHAWAN
             DISPUR
             GUWAHATI
             ASSAM

Advocate for the Petitioner   : MR K KHANNA

Advocate for the Respondent : SC, GST




             Linked Case : WP(C)/2795/2021

            M/S OIL INDIA LIMITED
            DULIAJAN
            DIBRUGARH
            ASSAM
            786602
            THROUGH ITS AUTHORISED REPRESENTATIVE SOMNATH GUPTA
            DGM (F AND A) PIPELINE HEAD QUARTER
            OIL INDIA LTD. NARENGI
            GUWAHATI


             VERSUS

            THE UNION OF INDIA AND 4 ORS
            THROUGH SECRETARY (REVENUE) DEPARTMENT OF REVENUE
            MINISTRY OF FINANCE
            NORTH BLOCK
            NEW DELHI 110001

            2:CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

            DEPARTMENT OF REVENUE
            MINISTRY OF FINANCE
            NORTH BLOCK
            NEW DELHI 110001
            3:THE COMMISSIONER CENTRAL GOODS AND SERVICE TAX AND EXCISE

            DIBRUGARH GST COMMISSIONERATE
            LANE F
                                                                      Page No.# 3/5

           WEST MILAN NAGAR
           DIBRUGARH
           ASSAM
           786003
           4:THE SUPERINTENDENT OF GOODS AND SERVICE TAX AND ASSAM VAT

          NAHARKATIA 1
          NAHARKATIA MAIN ROAD
          ASSAM
          5:THE COMMISSIONER OF TAXES

          ASSAM GOODS AND SERVICE TAX AND ASSAM VAT
          KAR BHAWAN
          DISPUR GUWAHATI ASSAM
          ------------
          Advocate for : MR K KHANNA
          Advocate for : MR. S C KEYAL (SC
          GST) appearing for THE UNION OF INDIA AND 4 ORS




                           BEFORE
      HONOURABLE MR. JUSTICE ACHINTYA MALLA BUJOR BARUA

                                   ORDER

02.11.2021 Heard Mr. Arvind Datar, learned senior counsel for the applicant/ writ petitioner. Also heard Mr. SC Keyal, learned counsel for the respondents No.1, 2 and 3 being the authorities in the GST Department under the Central Government and Mr. B Gogoi, learned counsel for the respondents No.4 and 5 being the authorities in the GST Department under State of Assam.

2. The applicant had instituted WP(C)No.2795/2021, WP(C)No.3872/2020 and WP(C)No.3875/2020 assailing the imposition of service tax/GST on the royalty component paid by the applicant/petitioner to the Government of Assam.

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3. This interlocutory application has been filed for an interim order staying the operation and effect of the levy of GST on royalty payment made by the applicant/petitioner under Section 6D of the Oilfields (Regulation and Development) Act, 1948 read with Rules 13 and 14 of the Petroleum and Natural Gas Rules 1959 during the pendency of the writ petitions concerned with further prayer permitting the applicant/petitioner to refrain from depositing the GST payment under protest in respect of the royalty component of the payments made by them.

4. In order to substantiate their prayer for staying the operation and effect of the levy of GST on the royalty payments, the applicant relies upon the order dated 05.02.2018 of the Supreme Court in Petition(s) For Special Leave to Appeal (C) No(s).2567/2018 which had arisen pursuant to the final judgment and order dated 12.12.2017 of the High Court of Judicature for Rajasthan at Jaipur. The operative part of the order dated 05.02.2018 of the Supreme Court is extracted as below:

"Until further orders payment of service tax for grant of mining lease/royalty by the petitioners shall remain stayed."

5. As the payment of service tax/GST on the royalty component payable by the Oil companies have been stayed by the Supreme Court, a similar interim order is also passed in the present interlocutory application by providing that the operation and effect of the levy of GST on the royalty payment made by the applicant/petitioner under Section 6D of the Oilfields (Regulation and Development) Act, 1948 read with Rules 13 and 14 of the Petroleum and Natural Gas Rules 1959 shall remain stayed until further order(s), meaning Page No.# 5/5

thereby that the applicant/petitioner till such further order(s) would not be required to pay the service tax/GST on the royalty component of the payments made by them to the State of Assam.

6. The interlocutory application stands disposed of in the manner as indicated hereinabove.

JUDGE

Comparing Assistant