The Gujarat High Court has restrained the GST department from taking the coercive action in a plea challenging order levying GST on royalty paid on mining lease.
The bench of Justice Bhargav D. Karia and Justice D.N.Ray directed the GST Department not to take any coercive action in a challenge to the order levying GST on the royalty paid in the context of mining lease.
The petitioner has challenged the show cause notice and order issued under Section 74 of the Gujarat Goods and Sales Tax Act, 2017, for levy of GST on the royalty paid by the petitioner for quarry lease granted by the State Government.
The court issued the notice to the GST department.
It is worthwhile to note that no doubt the Supreme Court has upheld the levy of GST on royalty paid for mining rights basis, however, the issue related to the retrospective or prospective applicability of GST on mining lease/royalty is still pending before the Supreme Court.
Case Details
Case Title: Rainbow Infrastructure Versus Union Of India & Ors.
Case No.: R/Special Civil Application No. 536 Of 2025
Date: 17/01/2025
Counsel For Petitioner: Krutarth K Desai
Counsel For Respondent: Ankit Shah
