GST on Royalty  ––– The petitioner prayed for writ of Mandamus or direction declaring the action of the 1st respondent in issuing Notice for Demand dated 25.11.2021, proposing to levy GST on the Royalty amount paid to the Government, without jurisdiction and in violation of principles of natural justice. The counsel for the petitioner submitted that the petitioner has been issued SCN dated 25.11.2021 with regard to the charging of GST on Royalty paid. The counsel submitted that in Mineral Area Development Authority & Ors. Steel Authority of India & Ors., the said matter has been referred to a Nine Judges Bench of the Hon'ble Supreme Court. The counsel further relied upon the judgment in M/s. Lakhwinder Singh Versus Union of India & Others, wherein the Hon’ble Supreme Court has stayed payment of GST for grant of mining lease/ royalty. The court observed that the very issue as to whether GST would be chargeable on minerals on which already royalty has been paid is actively under consideration before a Nine Judges Bench of the Hon'ble Supreme Court.

Held that:- The Hon’ble High Court directed that the present matter be listed after disposal of Writ Petitions. In the meantime, there shall be stay of the show cause notice dated 25.11.2021.