The Madras High Court has directed the assessee – petitioner to file the reply to the Goods and Services Tax ( GST ) intimation issued with regards the liability on  Seigniorage Fee Paid to Government within 4 weeks. The Petitioner,  AVS Tech Building Solutions challenged the intimation communicating the GST liability under applicable GST laws in respect of seigniorage fee paid by the petitioner to the Government. The petitioner’s counsel placed the jus=dgment of Division Bench in a batch of cases where the lead case is A.Venkatachalam v. Assistant Commissioner (ST), Palladam for the consideration.

The Division Bench of this Court issued the following directions at paragraph 9 of the judgment: “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.” Considering the above mentioned judgment, a single bench of Justice Senthilkumar Ramamoorthy disposed of the petitions on the same terms. Consequently, the petitioner was permitted to submit his reply to the intimation within a maximum period of four weeks from the date of receipt of a copy of the order.