Facts of the Case

M/s Shri Kalyan Marbles, through its proprietor Smt. Meena Devi Sahu, filed a writ petition before the Rajasthan High Court challenging the levy of Goods and Services Tax on royalty. The principal relief sought by the petitioner was founded on the contention that the levy of GST on royalty was beyond legislative competence.

The other reliefs sought in the writ petition were consequential in nature and depended upon the success of the principal challenge to the levy of GST on royalty.

The High Court noted that a Coordinate Bench had already considered the same controversy in Sudershan Lal Gupta Contractor vs Union of India & Others, D.B. Civil Writ Petition No. 8109/2022 and batch of petitions, decided on 27 September 2022. In that decision, the Court had recorded that a consistent view had been taken in a large number of cases dismissing writ petitions challenging the levy of GST on royalty.

Issues Involved

The principal issues before the Court were:

  1. Whether the levy of GST on royalty was beyond legislative competence.
  2. Whether the petitioner was entitled to consequential reliefs arising from the principal challenge to GST on royalty.
  3. Whether the petition could survive in view of the consistent line of decisions of the Rajasthan High Court dismissing similar challenges to the levy of GST on royalty.

Petitioner’s Arguments

The petitioner’s principal contention was that GST on royalty was beyond legislative competence.

Accordingly, the petitioner sought relief against the levy of GST on royalty. The remaining reliefs claimed in the writ petition were consequential and were based upon the principal challenge to the levy.

Important note: The short order does not record any further detailed submissions, statutory interpretation, or separate argument concerning the precise constitutional or statutory source of the alleged lack of legislative competence. Therefore, no additional argument should be attributed to the petitioner beyond what is expressly reflected in the judgment.

Respondent’s Arguments

The order does not separately reproduce or record detailed arguments advanced on behalf of the respondents.

However, the Court considered the existing and consistent judicial position of the Rajasthan High Court, under which challenges to the levy of GST on royalty had already been dismissed in several cases.

Important note: Since the judgment does not set out specific oral or written submissions of the respondents, no independent or additional respondent argument should be inferred beyond the position emerging from the precedents relied upon by the Court.

Court Order / Findings

The Rajasthan High Court found that a Coordinate Bench, in Sudershan Lal Gupta Contractor vs Union of India & Others, had already held that a consistent view had been taken by the Court in a large number of cases concerning challenges to GST on royalty.

The Court referred to the following earlier decisions:

  • Udaipur Chambers of Commerce and Industry & Others vs Union of India & Another, D.B. Civil Writ Petition No. 14578/2016 and batch of writ petitions, decided on 24 October 2017.
  • M/s Mateshwari Minerals & Another vs Union of India & Another, D.B. Civil Writ Petition No. 7650/2021, decided on 26 July 2021.
  • M/s Shivalik Silica vs Union of India and Others, D.B. Civil Writ Petition No. 14849/2021, decided on 17 December 2021.
  • Rajasthan Small Mines (Cheja Patthar) Lease Holders Association & Others vs State of Rajasthan & Others, D.B. Civil Writ Petition No. 5199/2022, decided on 28 April 2022.

In view of the consistent position adopted by the Court, the Division Bench held that the writ petition was liable to be dismissed.

Final Order

The writ petition was dismissed.

Important Clarification

The judgment is significant for the following clarifications:

  • The principal challenge before the Court was specifically that GST on royalty was beyond legislative competence.
  • The other reliefs were merely consequential and dependent upon the principal challenge.
  • The Court did not undertake a fresh detailed examination of the controversy in this short order.
  • Instead, it followed the consistent view already taken by the Rajasthan High Court in a large number of cases.
  • The decision in Sudershan Lal Gupta Contractor vs Union of India & Others served as the immediate Coordinate Bench precedent referred to by the Court.
  • The Court also relied upon the established line of earlier decisions involving Udaipur Chambers of Commerce and Industry, M/s Mateshwari Minerals, M/s Shivalik Silica, and Rajasthan Small Mines (Cheja Patthar) Lease Holders Association.
  • The order should therefore be understood as a precedent-following dismissal of the challenge raised in this writ petition, based on the consistent view of the Rajasthan High Court.
  • The judgment does not expressly identify or adjudicate a particular charging-section dispute in detailed statutory terms; its central recorded issue is the challenge to GST on royalty on the ground of legislative competence.

Sections / Legal Provisions Involved

The short judgment does not expressly mention any specific section number of the CGST Act, 2017, the Rajasthan GST Act, 2017, or any other enactment.

Accordingly, to preserve the exact meaning of the judicial order, no unmentioned statutory section should be inserted as though it had been expressly considered by the Court.

The legal subject matter expressly involved is:

Link to download the order -

https://mytaxexpert.co.in/uploads/1783505214_1536compressed.pdf

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