Allahabad High Court suspends request for TPS on payment of royalties to conduct mining activities

the Allahabad High Court bench Judge Saumitra Dayal Singh suspended the application for GST on the payment of royalties to conduct mining activities.

The claimant/assessed challenged the appeal order. As the Tribunal had not yet been constituted, the motion in writ was granted. The first appeal order arising from the earlier order under Section 73 of the UP GST Act, 2017 was also challenged. The petitioner also challenged the ex parte order made by the state GST authorities pursuant to a notice. It was stated that the two proceedings relate to the same fiscal period, namely the financial year 2017-2018.

The claimant argued that no GST liability could arise from the payment of a royalty to conduct mining activities.

The petitioner relied on the decision of the Supreme Court in the case AD Agro Foods Pvt. Ltd Vs. Union of India in which the payment of GST for the granting of a mining lease/royalty by the applicant has been suspended.

The court ruled that the case should be heard on both the issue of liability to pay GST and royalties as well as jurisdictional error in the second proceeding for the tax period.

The court, while listing the case on 07.09.2022, granted the department six weeks to file a counter affidavit and ordered the petitioner to file a rebuttal affidavit within two weeks.

Case title: M/s Jitendra Singh v India Union

Quote: Fiscal Brief No. 699 of 2022

Date: 11.05.2022

Applicant’s lawyer: Lawyers Amit Upadhyay, Kedar Nath Kumar, Vishnu Kesarwani

Counsel for the Respondent: ASGI, SCC, Gopal Verma, Parv Agarwal

Click here to read/download the order

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Elaine R. Knight