Applicability Of GST On Royalty Paid For Mining Limestone: Meghalaya High Court Stays GST Recovery
The Meghalaya High Court bench headed by Chief Justice Sanjib Banerjee and Justice W. Diengdoh has stayed the recovery of GST on royalty paid for mining limestone. The issue raised was in respect of the applicability of goods and services tax on royalty paid for mining limestone in the State. The petitioner/assessee agreed that the larger issue as to whether tax had to be paid on...
The Meghalaya High Court bench headed by Chief Justice Sanjib Banerjee and Justice W. Diengdoh has stayed the recovery of GST on royalty paid for mining limestone.
The issue raised was in respect of the applicability of goods and services tax on royalty paid for mining limestone in the State. The petitioner/assessee agreed that the larger issue as to whether tax had to be paid on mining royalty was pending before the Supreme Court.
The petitioner has relied on an order dated October 4, 2021 where the special leave petition involving a similar question was directed by the Supreme Court to be tagged with the matter wherein the issue is as to whether any GST is payable on royalty. The Supreme Court granted the interim relief by staying the demand for GST for the grant of mining lease/royalty.
The court noted that since the issue as to whether GST would be applicable on royalty is pending before a Constitution Bench, the matter may have to await the outcome of the case before the Supreme Court.
The court listed the matter for July 8, 2022.
Case Title: M/s Hills Cement Company Limited vs. The Union of India & Ors
Citation: WP(C) No. 177 of 2022
Dated: 13.05.2022
Counsel For Petitioner: Advocate D. Saraf with Advocate P.K. Agarwal
Counsel For Respondent: ASG N. Mozika with Advocate L. Jana