Andhra Pradesh High Court - Amravati
M/S. Trendset Rocks Private Limited, vs Asst. Commissioner St, on 2 November, 2021
Author: B. Krishna Mohan
Bench: B. Krishna Mohan
HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
MAIN CASE No.: W.P. No.25212 of 2021
PROCEEDING SHEET
Sl.
ORDER
No DATE
1. 02.11.2021 AHSANUDDIN AMANULLAH, J and B. KRISHNA MOHAN, J (per Hon'ble Mr.Justice Ahsanuddin Amanullah) Heard Mr. I.Ramana Reddy, learned counsel for the petitioner and Mr. Y.N.Vivekananda, learned Government Pleader, Commercial Tax, for the respondents no.1 & 2, Mr. Vijay Narasimha, learned Assistant Government Pleader, Mines & Geology, for the respondent no.3 and Mr Harinath N., learned Assistant Solicitor General, for the respondent no.4.
The petitioner has moved the Court for the following relief:
"to issue a Writ of Mandamus or any other appropriate writ or order or direction declaring the Show Cause Notice dated 07.10.2021 for the tax periods July, 2017 to August, 2021, as illegal, arbitrary and contrary to the provisions of the Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017; (ii) declare Circular No.164/20/2021-GST, dated 06.10.2021 issued by the Central Board of Indirect Taxes and Customs to the extent it interprets the rate of tax on service by way of grant of mining rights for the period 01.07.2017 to 31.12.2018 at 18%, as arbitrary, irrational, illegal and void and to pass order or orders...."
Learned counsel for the petitioner has drawn the attention of this Court to the fact that he has already paid royalty charges for the minerals extracted, but still, he has been sent show cause notice dated 07.10.2021 with regard to the charging of GST on the same minerals on which royalty has already been paid. It was submitted that in Mineral Area Development Authority & Ors. Steel Authority of India & Ors., (2011) 4 SCC 450, after noting the conflict between two earlier decisions of the Hon'ble Supreme Court, the matter has been referred to a Nine Judges Bench of the Hon'ble Supreme Court.
Learned counsel for the petitioner submitted that after such reference, when show cause notice for payment of GST was issued, the matter again went to the Hon'ble Supreme Court and in one such case, being Writ Petition (Civil) No.1076 of 2021 (M/s. Lakhwinder Singh Versus Union of India & Others), the Hon'ble Supreme Court while tagging the case with SLP (C ) No.37326 of 2017, has passed interim orders staying payment of GST for grant of mining lease/ royalty. Thus, learned counsel submitted that the Court may also grant interim protection to the petitioner in the aforementioned terms.
It is further brought to the notice of this Court that in similar matter in W.P.No.10407 of 2021 (M/s. Venkata Sai Granites vs. The Union of India and others), interim stay has been granted by this Court suspending the impugned show cause notice.
Learned Government Pleader, Commercial Tax, submitted that only show cause notice has been issued.
Having considered the matter, since 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, in the present matter, the petitioner has made out a case for interim order.
Accordingly, the matter be listed after disposal of Writ Petition (Civil) No.1076 of 2021 and SLP(C) No.37326 of 2017. In the meantime, there shall be stay of the show cause notice dated 07.10.2021 issued to the petitioner, which is impugned in the present writ petition. The parties are at liberty to mention the matter before this Court upon disposal of the cases before the Hon'ble Supreme Court.
In the meantime, pleadings be completed.
_________________________________ (AHSANUDDIN AMANULLAH, J) _________________________ (B. KRISHNA MOHAN, J) Gvl