C Kandasamy v. The State Tax Officer

ORDER Ms.Amirtha Poonkodi Dinakaran, learned Government Advocate takes notice for the Respondent.

¶2This Writ Petition is being disposed of at the time of admission with the consent of the learned counsel for the Petitioner and the learned Government Advocate for the Respondent.

¶3In this Writ Petition, the Petitioner has challenged the impugned proceedings passed by the Respondent in the order vide: TEMP.ID: 33250000342TMP/20-21 dated 19.02.2026 along with the consequential Assessment Order bearing Ref.No.ZD3302261682598 dated 19.02.2026 through FORM GST ASMT-15 under section 63 of the respective GST Enactments read with Rule 100(2) of the respective GST Rules along with consequential Summary Order bearing Ref.No.ZD3302261682598 dated

19.02.2026 through FORM GST DRC-07 under section 74 of the respective GST Enactments.

¶4The Petitioner has not obtained registration and has not paid GST to the Government on the Seigniorage fee/Royalty for quarrying and transporting of mines and minerals under the Reverse Charge Mechanism

(RCM). The Petitioner had also not made any contributions to the District Mineral Foundation Trust (DMFT).

¶5Under similar circumstances, this Court has passed orders by remitting the case back subject to the outcome of the decision of the Hon'ble Supreme Court regarding the dispute relating to levy of GST on the Seigniorage fee/Royalty paid for quarrying mines and minerals. In this connection, a reference is made to the decision of this Court in S.Pichandhi, Proprietor of Sri Murugan Ready Mix Concrete and Blue Metal Industries, Vellore Vs. The Deputy State Tax Officer, Vellore Rural Assessment Circle, Vellore, in W.P.Nos.35883 and 35889 of 2025 dated

25.09.2025. Relevant portion of the order is reproduced below:- "3. In these Writ Petitions, the Petitioner has challenged the impugned Notices in FORM GST DRC-01A dated 16.06.2025 for the Tax Period

2021-2022 and 2020-2021 respectively.

¶4The learned counsel for the Petitioner submits that the issue is now pending before the Hon'ble Supreme Court, as the dispute pertains to levy of GST on the Seigniorage fee/Royalty paid for quarrying and transporting mineral.

¶5Considering the fact that the issue is pending before the Hon'ble Supreme Court, I am inclined to dispose of these Writ Petitions at the admission stage, by directing the Respondent to keep all the proceedings in abeyance.

¶6The Respondent shall await the orders to be passed by the Hon'ble Supreme Court and thereafter proceed in accordance with law. The Petitioner shall however deposit 10% of the disputed tax as security, in line with the directions issued in the Petitioner's own case earlier."

¶6Considering the facts and circumstances of the above case in W.P.Nos.35883 and 35889 of 2025, which are almost identical to the facts of the present case, this Court is of the view that the aforesaid order will hold good in respect of the present Writ Petition also. Accordingly, this Writ Petition stands disposed of on the same terms. No costs. Connected Writ Miscellaneous Petitions are closed.

12.03.2026 arb To: The State Tax Officer, Office of the Commercial Tax Officer, Madhuranthakam Assessment Circle, Chengalpattu, Tamil Nadu.

C.SARAVANAN, J. arb and W.M.P.Nos.10614 and 10615 of 2026

12.03.2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 12.03.2026 CORAM : THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.Nos.10614 and 10615 of 2026 C.Kandasamy, S/o.Chinnakavundar ... Petitioner Vs. The State Tax Officer, Office of the Commercial Tax Officer, Madhuranthakam Assessment Circle, Chengalpattu, Tamil Nadu. ... Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari, to call for the records relating to the impugned proceedings passed by the Respondent in the order vide: TEMP.ID: 33250000342TMP/20-21 dated 19.02.2026 along with the consequential assessment order through FORM GST ASMT-15 under section 63 of the act bearing Ref.No.ZD3302261682598 dated 19.02.2026 along with consequential summary order through FORM GST DRC-07 under section 74 of the act bearing Ref.No.ZD3302261682598 dated 19.02.2026 for the financial year 2020-2021, to quash the same. For Petitioner : Mrs.R.Hemalatha For Respondent : Ms.Amirtha Poonkodi Dinakaran Government Advocate