SC issues notice on Writ Petitions challenging 18% GST over mining operations

Shivani Gadhavi –

Published On: December 08, 2021 at 18:10 IST

The Supreme Court of India issued a notice on December 7th, 2021 in relation with the two Petitions that are filed by firms and companies that are involved in mining operations. The Writ Petitions challenged a circular of the current government which states that mining companies are liable to pay the Goods and Services Tax.

The Supreme Court Bench of Justice D.Y. Chandrachud, Justice Surya Kant and Justice Vikram Nath questioned the ‘maintainability’ of the Petitions and why the Petitions have been filed under Article 32 of the Constitution of India in the Supreme Court.

Advocate Kartik Seth for the petitioners responded that the aforementioned issue regarding the ‘royalty on mining is a kind of GST or not’ has been severely discussed in many High Courts and that a Supreme Court Bench of 9-Judges has already been referred to previously by a coordinate Bench of the Apex Court.

Advocate Kartik Seth stated, “Hence, going to the High Court and getting the same view reiterated would be futile and therefore, these Writ Petitions should be entertained by this Hon’ble Court and all the matters should be heard together.”

The Appellants seek refund in full amount of the money that they have been made to pay to State Governments in the form of Goods and Services Tax over the royalty on mining operations and the Petitions also seek quashing of every notification or circular passed or would be passed in the future which implies to pay tax over the royalty on mining operations.

The Three-Judge Bench of the Supreme Court issued a notice regarding the Writ Petitions and shifted the date of next hearing to January 4th, 2021.

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