Held -  The activities mentioned in the Entry No. 2 of the Schedule II relate to the activities to be treated as supply of goods or supply of services with regard to the Land and Building which is given as under:(a) Any lease, tenancy, easement, license to occupy land is supply of serviceTherefore, from the above leasing of the Government land to the applicant to carry out the activity of the quarrying is a supply of service to the applicant. The nature of service received by the application is covered under the Service Accounting Code 9973 37 - Licensing services for the right to use minerals including its exploration and evaluation. The Government has been providing the service of licensing services for the right to use minerals after its exploration and evaluation to the applicant and applicant has to pay a consideration in the form of rent/ royalty to the Government for the same.The applicability of GST rate for the aforementioned service is based on the classification of service. In the present case, the mining rights so granted is covered under the sub-heading 9973 37 that specifies - ‘Licensing services for the right to use minerals including its exploration and evaluation’The activity undertaken by the applicant attracts 18% GST (9% CGST+ 9% SGST).

Held - We find that the issue of classification and applicable tax rate (on the date of passing the advance ruling) has already been decided by us vide ruling 04/2019-20 dated 12.07.2019 in the applicant's own case wherein it was held that services rendered by M/s. GMVN falls under residual entry 17 (viii) covered under service code (Tariff) 997337 of serial no. 257 of annexure appended to Notification 11/2017-CentraI Tax (Rate) dated 28.06.2017 (as amended from time to time) as right to use minerals including its exploration and evaluation" and the said services rendered by M/s. GMVN to the applicant attract GST @ 18% (as on date), however the applicant has specifically sought advance ruling regarding rate of GST applicable on the said service during the period 01.07.2017 to 31.12.2018. Thus we are not deciding any wider question but restricting our conclusion to the facts and circumstances which were filed for our consideration in the application.Since we have already decided vide ruling 04/2019-20 dated 12.07.2019 that that the service in question falls under residual entry 17 (viii) of said Notification and on perusal of aforesaid tables, we find that the said entry was amended vide Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018 (applicable w.e.f 01.01.2019) which implies that the service in question provided during the period 01.07.2017 to 31.12.2018 attract GST at the same rate of central tax as on supply of like goods involving transfer of title in goods and w.e.f 01.01.2019 the said service attract GST @ 18%.Transfer of title of goods i.e. 5%.

Held - Royalty is a charge by the State Government in lieu of consideration of the exploitation and extraction of the mineral resources by the lessee. The payment of royalty is a statutory levy in accordance with the provisions of Mines and Mineral (Development and Regulation) Act, 1957 against licensing services by the Government for the right to extract minerals and the same is subject to levy of GST under Reverse Charge Mechanism.The royalty paid by M/s. Cosme Costa & Sons in respect of mining lease is classifiable under sub heading 997337- “Licensing services for the right to use minerals including its exploration and evaluation” and is subject to levy of GST @ 5% till 31.12.2018 and thereafter @ 18% under reverse charge basis.

Held - The authority, in the aforesaid AAR Order No. 69/2019, dated 21-9-2019, ruled that the contributions made towards DMF & NMET are not separate transactions but are on account of the supply made & are directly linked to the royalty payable; also computed as a fixed percentage of royalty and hence are treated as part of the consideration payable for the Licensing Services for right to use minerals including exploration and evaluation.In view of the above, it is clearly evident from the aforesaid AAR Order that the authority has considered all the submissions and issued the proper order. Hence there is no error/apparent mistake on the face of the record, in the said order and hence the instant application is not valid and is liable for rejection, in terms of Section 98(2) of the CGST Act, 2017.

Held - In the given transaction, mining contract has been awarded to the applicant for right to use minerals namely “Stone along with associated minor minerals”. Hence, it is argued that the services received by the applicant from state government in respect of grant mining contract are classifiable under sub heading 997337 as covered under entry 257 of the annexure appended to the notification No. 11/2017-CT (Rate) dated 28.06.2017. Further, GST on the said supply of services is payable according to the entry at sr. no. 17 of the table in said notification.Since a perusal of classification of services of right to use natural resources classify under tariff 9973 and since description of services under serial No. 17 (i) to (vii) does not cover such services of right to use minerals, therefore, it would fall under the residual entry at serial number 17 (viii). Being so, the rate of tax applicable on such services, as provide therein, shall be the same rate of tax as applicable on supply of like goods involving transfer of title in goods.On the basis of above, it is evident that service charge by way of annual dead rent or royalty paid for services of granting right to use mineral would attract GST rate as applicable on supply of mineral which is being extracted through such mining.Further, in view of entry at sr. no. 5 of the CGST notification no. 13/2017-CT (Rate) dated 28.06.2017, GST is payable on reverse charge basis by the recipient of above services i.e. the applicant in the present case 

Held -  After hearing learned counsel for the parties, we are of the view that we are bound by the final orders passed by Co-ordinate Benches of this Court in the cases of Udaipur Chambers of Commerce and Industry & Others Vs. The Union of India & Another (supra); M/s Mateshwari Minerals & Another Vs. Union of India & Another (supra); M/s Shivalik Silica Vs. Union of India & Others (supra) and Rajasthan Small Mines (Cheja Patthar) Lease Holders Association Vs. State of Rajasthan & Others (supra). The prayer of the petitioners to entertain the petition on the same issue on the basis of interim order passed in the case of Shree Basant Bhandar INT Udyog Vs. Union of India (supra) and similar interim orders passed in other cases cannot be accepted. Once we are faced with final order passed on one hand and interim orders on the other, we have to follow the final verdict of Co-ordinate Bench of this Court.Though the orders passed by this Court in the cases referred to above repelling challenge to leviability of GST on royalty have been assailed by filing SLPs before the Hon’ble Supreme Court, learned counsel appearing on behalf of all the parties do not dispute that the issue has not been decided by the Hon’ble Supreme Court and learned counsel for the parties have also brought to our notice that the issue as to whether royalty is in the nature of tax has been referred by the Hon’ble Supreme Court for consideration by the Bench of nine-Judge in the case of Mineral Area Development Authority etc. & Others Vs. M/s. Steel Authority of India and Others (2011) 4 SCC 450.In view of above consideration as also relying upon the decision of this Court in the cases of Udaipur Chambers of Commerce and Industry & Others Vs. The Union of India & Another (supra); M/s Mateshwari Minerals & Another Vs. Union of India & Another (supra); M/s Shivalik Silica Vs. Union of India & Others (supra) and Rajasthan Small Mines (Chejapatthar) Lease Holders Association Vs. State of Rajasthan & Others (supra), D.B. Civil Writ Petition No. 8109/2022, 6391/2022 and 9534/2022 are dismissed.Insofar as D.B. Civil Writ Petition No. 5199/2022 is concerned, the petitioners have challenged imposition of GST on royalty as also prayed for some other reliefs. The relief, insofar as challenge to leviability of GST on royalty is concerned, has already been rejected. As ordered earlier, this petition will survive adjudication only in respect of other reliefs.Office is directed to place a copy of this order on the record of each connected writ petition.

Held - Upon hearing the council the court made the following order1 Issue notice.2 Tag with SLP(C) No 37326 of 2017.3 Until further orders, payment of GST for grant of mining lease/royalty by the petitioner shall remain stayed.

Held - Though the aforesaid judgement of the Hon’ble Supreme Court (in the case of L.M.L. Ltd. Vs. Commissioner of Customs [Civil Appeal No. 3764 of 2003, decided on 21.09.2010 reported at 2010 (258) ELT 321 (S.C.))is in respect of reliance to be placed on the HSN Explanatory Notes while interpreting the Central Excise Tariff and the Customs Tariff, the ratio laid down therein is equally applicable for interpreting the “Scheme of Classification of Services” attached to the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 inasmuch as the said “Scheme of Classification of Services” adopted for the purpose of Goods and Services Tax is in accordance with the United Nation’s Central Product Classification (UNCPC) and Explanatory Notes.As the service involved in this case is classifiable under Service Code 999113 as “Public administrative services related to the more efficient operation of business”, it is not deemed necessary to discuss various arguments put forth by the appellant in support of the contention that the said service is covered within residual sub-entry (vi) or (vii) or (viii) (as renumbered from time to time) of Sl. No. 17 of Notification No. 1/2017-Central Tax (Rate) pertaining to Heading 9973.The appellant M/s. Raj Quarry Works is required to pay Goods and Services Tax as per Sl. No. 5 of Notification No. 13/2017-Central Tax (Rate) dated 28.06.2017 on the aforesaid service received by the appellant from the Government of Gujarat, whereby the appellant is required to pay Royalty to the Government of Gujarat.