The Hon’ble Madras High Court in M/s. Vadivel Pyro Works v. The State Tax Officer set aside demand raised by the Revenue Department on the ground that rectification order under section 161 of the CGST Act was passed without giving opportunity of being heard to the assessee.
The Hon’ble Chhattisgarh High Court in Mahesh Sharma dismissed the writ petition challenging the SCN demanding service tax on royalty. The court relied on the Supreme Court’s ruling in Mineral Area Development Authority v. Steel Authority of India [Civil Application Nos. 4056-4064 of 1999 dated July 25, 2024] and held that royalty is not a tax but a contractual payment.