Hills Cement Company Limited Vs Union Of India

The issue revolves around the applicability of goods and services tax on royalty paid for mining limestone. It is noted that the larger issue regarding tax payment on mining royalty is pending before the Supreme Court. The petitioner has cited an order dated October 4, 2021, where the Supreme Court directed a similar question related to GST on royalty to be tagged with another matter. The interim relief granted by the Supreme Court in the related case was unconditional, directing the demand for GST on mining lease/royalty to remain stayed. Consequently, the demand in the present case specified in the notice dated February 7, 2022, will also remain stayed pending the disposal of this petition. The court has directed for further filings of affidavits and replies, and scheduled the matter to appear eight weeks later, with a note that the issue of GST applicability on royalty may have to await the outcome of the case before the Supreme Court. The case is listed to be heard on July 8, 2022.