IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 27.03.2024
CORAM: THE HONOURABLE MR.JUSTICE SENTHILKUMAR
RAMAMOORTHY
W.P.No.7923 of 2024 and W.M.P.Nos.8891 & 8893 of
2024
C.Selladurai ... Petitioner
~vs~
The Deputy State Tax Officer~2 (ST)(FAC),
Omalur Circle, Omalur,
Salem District. ... Respondent
PRAYER: Writ
Petition filed under Article 226 of the Constitution of India, pleased to issue
a Writ of Certiorari, calling for the records relating to the Notice of the
Respondent dated 10.01.2023 in Ref: GSTIN: 33BIVPS0748B2Z3/2019~2020 for levy
of GST on seigniorage fee / royalty for the Financial Year 2019~2020, the
penalty and intrest levied thereon quash the same.
For
Petitioner :
Mr.V.Sanjeevi
For
Respondent : Mr.V.Prashanth Kiran, GA (T)
**********
ORDER
1. By
this writ petition, the petitioner assails the show cause notice issued under
the Tamil Nadu Goods and Services Tax Act, 2017 in relation to the imposition
of GST under the reverse charge mechanism on the seigniorage paid by the
petitioner to the Government.
2. Mr.V.Prashanth Kiran, learned Government
Advocate, accepts notice on behalf of the respondent. He has placed on record the recent judgment
of the Division Bench of this Court in a batch of writ petitions,
A.Venkatachalam v. Assistant Commissioner (ST), Palladam II Assessment Circle,
Palladam, W.P.Nos.30974 of 2022 batch.
In the said judgment, the following directions were issued at paragraph
9 thereof:
“9. In these
circumstances, we deem it fit and appropriate to issue the following directions:
(i) In the cases, where
the challenge is made to the show cause notices, the writ petitioners shall
submit their objections / representations within a period of four weeks from
the date of receipt of a copy of this order.
(ii) Upon receipt of
the objections / representations from the writ petitioners, the authority
concerned shall proceed with the adjudication, on merits and in accordance with
law, after affording reasonable opportunity of being heard to the petitioners. However, the orders of adjudication shall be
kept in abeyance until the Nine Judge Constitution Bench decides the issue as
to the nature of royalty.
(iii) It is made clear
that there shall be no recovery of GST on royalty until the Nine Judge
Constitution Bench takes a decision.
(iv) Needless to state
that on the matters being decided, the writ petitioners if still aggrieved,
shall redress their grievance(s), if any, before the appropriate forum,
including by filing appeal(s).
(v) Insofar as the
challenge to the notification as well as the circular, it is open to the writ
petitioners to act upon, after the outcome of the case pending before the Nine
Judge Constitution Bench.
(vi) It is also made
clear that all the contentions are left open for the writ petitioners to raise
in appropriate proceedings, after the outcome of the decision of the Nine Judge
Constitution Bench.“
3. In
view of the above judgment, this writ petition is liable to be disposed of on
the same terms. Accordingly,
W.P.No.7923 of 2024 is disposed of in
terms of directions issued in paragraph 9 of A.Venkatachalam v. Assistant
Commissioner. No costs. Consequently, W.M.P.Nos.8891 and 8893 of 2024
are closed.
Disclaimer:
All the Information is based on the notification, circular and order issued by
the Govt. authority and judgement
delivered by the court or the authority information is strictly for educational
purposes and on the basis of our best
understanding of laws & not binding on anyone.
