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HIGH COURT OF JUDICATURE FOR RAJASTHAN JODHPUR

D.B. Civil Writ Petition No. 5678/2022

Shree Basant Bhandar Int Udyog

----Petitioner Versus Union Of India

----Respondent Connected With D.B. Civil Writ Petition No. 5463/2022 D.B. Civil Writ Petition No. 5465/2022 D.B. Civil Writ Petition No. 5519/2022 D.B. Civil Writ Petition No. 5530/2022 D.B. Civil Writ Petition No. 5579/2022 D.B. Civil Writ Petition No. 5807/2022 D.B. Civil Writ Petition No. 5958/2022 D.B. Civil Writ Petition No. 6094/2022 D.B. Civil Writ Petition No. 6178/2022 D.B. Civil Writ Petition No. 6253/2022 D.B. Civil Writ Petition No. 6364/2022 D.B. Civil Writ Petition No. 6368/2022 D.B. Civil Writ Petition No. 6370/2022 D.B. Civil Writ Petition No. 6373/2022 D.B. Civil Writ Petition No. 6513/2022 D.B. Civil Writ Petition No. 6607/2022 D.B. Civil Writ Petition No. 6735/2022 D.B. Civil Writ Petition No. 6878/2022 D.B. Civil Writ Petition No. 7130/2022 D.B. Civil Writ Petition No. 7178/2022 D.B. Civil Writ Petition No. 7190/2022 D.B. Civil Writ Petition No. 7209/2022 D.B. Civil Writ Petition No. 7213/2022 D.B. Civil Writ Petition No. 7254/2022 D.B. Civil Writ Petition No. 7263/2022 D.B. Civil Writ Petition No. 7316/2022 D.B. Civil Writ Petition No. 7330/2022 D.B. Civil Writ Petition No. 7354/2022 D.B. Civil Writ Petition No. 7355/2022 D.B. Civil Writ Petition No. 7368/2022 D.B. Civil Writ Petition No. 7388/2022 D.B. Civil Writ Petition No. 7392/2022 D.B. Civil Writ Petition No. 7395/2022

(2 of 5) [CW-5678/2022]

D.B. Civil Writ Petition No. 7432/2022 D.B. Civil Writ Petition No. 7498/2022 D.B. Civil Writ Petition No. 7554/2022 D.B. Civil Writ Petition No. 7574/2022 D.B. Civil Writ Petition No. 7579/2022 D.B. Civil Writ Petition No. 7584/2022 D.B. Civil Writ Petition No. 7590/2022 D.B. Civil Writ Petition No. 7615/2022 D.B. Civil Writ Petition No. 7692/2022 D.B. Civil Writ Petition No. 7705/2022 D.B. Civil Writ Petition No. 7787/2022 D.B. Civil Writ Petition No. 7795/2022 D.B. Civil Writ Petition No. 7801/2022 D.B. Civil Writ Petition No. 7803/2022 D.B. Civil Writ Petition No. 7804/2022 D.B. Civil Writ Petition No. 7808/2022 D.B. Civil Writ Petition No. 7822/2022 D.B. Civil Writ Petition No. 8407/2022 D.B. Civil Writ Petition No. 8423/2022 D.B. Civil Writ Petition No. 8454/2022 D.B. Civil Writ Petition No. 8492/2022 D.B. Civil Writ Petition No. 8629/2022 D.B. Civil Writ Petition No. 8670/2022 D.B. Civil Writ Petition No. 8671/2022 D.B. Civil Writ Petition No. 8672/2022 D.B. Civil Writ Petition No. 8682/2022 D.B. Civil Writ Petition No. 8748/2022 D.B. Civil Writ Petition No. 8764/2022 D.B. Civil Writ Petition No. 9057/2022 D.B. Civil Writ Petition No. 9227/2022 D.B. Civil Writ Petition No. 9228/2022 D.B. Civil Writ Petition No. 9247/2022 D.B. Civil Writ Petition No. 9253/2022

For Petitioner(s) : Mr. V.K. Agarwal Mr. Abhay Singla Mr. Lokesh Mathur Mr. Rakesh Arora Mr. D.D. Chitlangi Mr. Chiranjilal Mr. Aditya Singhi Mr. Sharad Kothari Mr. Manoj Bohra

(3 of 5) [CW-5678/2022]

Mr. Arvind Vyas Mr. Amit Vyas For Respondent(s) : Ms. Pratyushi Mehta associate to Mr. Sandeep Shah, Sr. Advocate-cum- AAG.

Mr. Rajvendra Saraswat Mr. Hemant Dutt Mr. Kuldeep Vaishnav Mr. Sandeep Bhandawat

HON'BLE MR. JUSTICE SANDEEP MEHTA HON'BLE MR. JUSTICE KULDEEP MATHUR

Order

05/07/2022

Issue notice to the respondents.

Heard learned counsel for the parties.

This bunch of writ petitions primarily involves the issue of

permissibility of raising demand of GST on royalty. The petitioners

in these petitions have challenged the notifications whereby,

royalty paid by them on mining activity is being subjected to GST

and/or notices issued for alleged incriminating discrepancies in

returns after scrutiny and analogous proceedings.

In the case of M/s Shivalik Silica Vs. Union of India &

Ors. (D.B. Civil Writ Petition No.14849/2021) decided on

17.12.2021, Division Bench of this Court examined the issue of

service tax on royalty, and held that as this Court had already

decided this issue against the assessee in the case of Udaipur

Chambers of Commerce & Industry Vs. Union of India

reported in 2018 (8) G.S.T.L. 170 (Rajasthan), and even

though the same controversy is under consideration of a larger

Bench of nine Hon'ble Judges of Hon'ble Supreme Court in the

case of Mineral Area Development Authority etc. Vs. M/s.

Steel Authority of India and Ors. and finally, the assessee was

(4 of 5) [CW-5678/2022]

denied the relief sought for. Based on the rejection of the writ

petition in the case of Shivalik Silica, Coordinate Division Bench at

Rajasthan High Court, Bench Jaipur in a similar matter, has

rejected the prayer for interim relief to the extent of proceedings

initiated against the assessee for recovery of GST on royalty vide

order dated 17.12.2021 passed in M/s Shivalik Silica Vs. Union

of India & Ors. (D.B. Civil Writ Petition No.14849/2021).

This Court is apprised that the judgment rendered by the

Division Bench of this Court in the case of Udaipur Chambers of

Commerce & Industry (supra), and which was relied upon in the

case of M/s Shivalik Silica (supra), has been subjected to

challenge before Hon'ble Supreme Court by way of Special Leave

to Appeal No.37326/2017 wherein Hon'ble Supreme Court has

stayed payment of service tax for grant of mining lease/royalty.

Thus, for all purposes, effect of the judgment of the Division

Bench in the case of Udaipur Chambers of Commerce &

Industry (supra) remains in abeyance.

In this background, we are not persuaded by the argument

advanced by the learned counsel for the respondents that the

prayer for interim relief in these petitions should be turned down

on the basis of the order dated order dated 17.12.2021 passed in

D.B. Civil Writ Petition No.14849/2021 more so, when replies are

still awaited in these writ petitions.

Thus, reserving the right of the respondents to move for

vacation of ad interim stay, if so advised, it is hereby directed that

in the proposed recovery of GST on royalty shall remain stayed

qua all the writ petitioners. However, the respondents shall be at

liberty to continue with the proceedings which have been initiated

under the impugned notices.

(5 of 5) [CW-5678/2022]

In fresh matters, notices shall be issued to the respondents.

In such writ petitions wherein notices have been issued, the

Registry shall check for service upon the respondents and where

powers have been filed, names of the respective counsels shall be

reflected.

In some of the writ petitions, power has been filed on behalf

of the respondents' by counsel Mr. Sandeep Bhandawat, Mr.

Hemant Dutt, Mr. Sandeep Shah, learned Sr. Advocate-cum-AAG

and Mr. Sunil Bhandari. Thus replies on behalf of the respective

Departments, be filed by the next date of hearing.

List on 16.08.2022.

(KULDEEP MATHUR),J (SANDEEP MEHTA),J

12, 20 to 55, 57 to 82, 84 to 87 Devesh/-

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