In Writ Tax No. 606 of 2023 - ALL HC - Allahabad High Court stays GST payment for grant of mining lease/royalty by M/s Amorous Trading India
Chief Justice Pritinker Diwaker & Justice Saumitra Dayal Singh [11-05-2023]

Read Order: M/s Amorous Trading India Private Limited v. State of U.P. and 2 Others

Chahat Varma

New Delhi, June 2, 2023: The Allahabad High Court has issued an order staying the payment of GST for the grant of mining lease/royalty by M/s Amorous Trading India Private Limited (petitioner). The stay will remain in effect until further orders from the court.

While hearing the matter, the petitioner vehemently urged that the royalty payment was tax and not consideration in the context of the privilege parted by the State allowing the petitioner and others to mine sand. That being the nature of the payment made by the petitioner, the same was not amenable to GST.

The division bench headed by Chief Justice Pritinker Diwaker took note of M/s Lakhwinder Singh vs. Union of India & Ors. [(2021) 05 GST 0683], wherein the Supreme Court in a similar controversy has stayed the payment of GST for grant of mining lease/royalty by the petitioner.

The division bench directed to connect and list the present matter with Writ Tax No. 475 of 2021.