Service Tax on Royalty paid on Mining Operations —– The petitioner challenged SCN dated 14/10/2021, calling the petitioner why service tax should not be recovered with interest and penalty, on royalty paid on mining operations. The counsel for the petitioner contended that this issue is pending before the larger bench of the Supreme Court in a reference to 9 judge bench. He placed reliance on the orders passed by the division bench of Gujarat High court and single bench of this court and in some cases by the Supreme Court where the recoveries are stayed. The court observed that this petition is against the SCN and in this adjudication process is still not over. If all the proceedings are stayed awaiting the reference judgment even before the adjudication has been completed, there is serious apprehension of the evidence and materials getting lost.

Held that:- The Hon’ble High Court dismissed the petition.