The Goods and Services Tax Appellate Tribunal (GSTAT) Principal Bench has restrained the respective State Benches from passing orders on the merits of appeals concerning the applicability of GST on royalty payments made to the Central and State Governments under mining leases.
The bench of Justice (Retd.) Dr Sanjaya Kumar Mishra, President of the GSTAT Principal Bench, passed the interim direction while considering applications filed by the assessee and others seeking the transfer of the pending appeals to the Principal Bench.
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The transfer applications raised an identical question of law: whether GST is applicable to royalty payments made to the Central or State Governments pursuant to mining leases and whether amounts deposited under protest are liable to be refunded.
The applications were filed under Section 109(5) of the Central Goods and Services Tax Act, 2017. The provision empowers the GSTAT President to transfer an appeal from one Bench to another in prescribed circumstances.
After considering the applications, the Principal Bench observed that the second appeals filed under Section 112(1) of the CGST Act prima facie appeared to involve an identical question of law.
In view of the common legal issue, the Tribunal issued notices to the respective Commissionerates, directing them to show cause why the appeals should not be transferred from the State Benches to the Principal Bench for consideration on merits and final disposal.
“Prima facie, it appears that these 2nd Appeals are under Section 112(1) of the CGST Act, involving identical question of law,” the Tribunal recorded.
The notices have been directed to be served through three separate modes—the GST portal, email and speed post with acknowledgement due.
The assessee undertook to file the complete process, including the necessary postal requisites, within ten days. The notices have been made returnable within four weeks.
Pending consideration of the transfer request, the Principal Bench expressly directed the concerned State Benches not to pass any order on the merits of the appeals.
The Registries of the respective State Benches have, however, been directed to complete the scrutiny and stamp-reporting formalities at the earliest. The Registry of the Principal Bench was also instructed to communicate the interim direction to the concerned State Benches.
The dispute concerns royalty paid under mining leases granted by government authorities. assessee ’s appeals also seek a refund of the GST amounts stated to have been paid under protest. The Tribunal has not yet expressed any final opinion on whether GST is legally payable on such royalty or whether assesseee is entitled to the claimed refund.
The present order is confined to issuing notice on the proposed transfer.
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