Falgungiri Mines Vs Union of India
Date: August 31, 2024
Subject Matter
Temporary stay on the demand for GST on mining royalties
Summary
In the case of Falgungiri Mines vs. Union of India & Others, the Allahabad High Court has issued a temporary stay on the demand for GST on mining royalties mandated to be paid by the petitioners. This stay is in line with a similar stay order from the Supreme Court concerning the same issue (SLP (C) No. 37326 of 2017). The Court highlighted that the overarching issue regarding GST on mining royalties is still under consideration and requires further evaluation. The parties are instructed to submit counter affidavits within four weeks and rejoinders two weeks thereafter. Meanwhile, the demand for GST on royalties remains on hold as the court seeks to resolve this matter together with a related case (Writ Tax No. 475 of 2021) that is already under consideration.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard learned counsel for the petitioner, Ms. Priyanka Midha, learned counsel appearing on behalf of respondent nos. 2 and 4
2. It has been informed by the parties that the issue with regard to the fact as to whether GST was to be paid on the royalty as was payable by the miners was engaging the attention of the Supreme Court in SLP (C) No.37326 of 2017. Learned counsel for the petitioners has also stated that in the SLP the payment of the GST on royalty paid for mining had been stayed.
3. Upon hearing learned counsel appearing on behalf of the parties, it appears that at the matter requires consideration and the affidavits are required to be exchanged between the parties.
4. Accordingly, let the counter affidavit be filed within four weeks; rejoinder affidavit if any, within two week thereafter.
5. Similar issue raised in the present petition is already engaging attention of this Court in Writ Tax No. 475 of 2021. Accordingly, list this case along with the Writ Tax No. 475 of 2021 on the date fixed therein.
6. In the meantime, for the reasons contained in the leading case being Writ Tax No. 475 of 2021, the demand of GST on the royalty payable by the petitioners shall remain stayed.