Rainbow Infrastructure Vs Union of India & Ors
Date: January 16, 2025
Court: High Court
Bench: Gujarat
Type: Special Civil Application
Subject Matter
Imposition of GST on the royalty payments made by the taxpayer for a quarry lease: Coercive action stayed
Summary
In the case of Rainbow Infrastructure vs. Union of India & Ors., the Gujarat High Court examined a petition regarding a show cause notice dated March 28, 2024, and an order dated August 9, 2024, issued under Section 74 of the Gujarat Goods and Services Tax Act, 2017. The notice was issued for the imposition of GST on the royalty payments made by the petitioner for a quarry lease granted by the State Government. The petitioner contended that levying GST on these royalty payments was inappropriate, especially as similar matters were still pending before the court. The High Court recognized these ongoing proceedings and scheduled a hearing for January 30, 2025. In the interim, the Court provided relief by staying any coercive actions against the petitioner, prohibiting any punitive measures during the case's pendency.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
1. Learned advocate Mr. Krutarth K.Desai for the petitioner submitted that the issue involved in this petition pertains to show cause notice dated 28.03.2024 and order dated 09.08.24 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.
2. It was submitted that similar matters are pending before this Court being Special Civil Application No.11563 of 2023 and allied matters.
3. Issue Notice returnable on 30.01.2025.
4. In the meanwhile, no coercive action shall be taken by the respondents during the pendency of this petition.
5. To be heard with Special Civil Application No.11563 of 2023 and allied matters. Direct service, through e-mail, is permitted.