Judgment

R. M. SAHAI

( 1 ) THE only question that survives for consideration in this appeal directed against judgment and order of the Gujarat High court is if the fixation of royalty under the Mines and Minerals (Regulation and Development) Act of 1957, (referred to as the Act) was contrary to clause (a) of the proviso to Ss. (3 of Section 9 of the Act.

( 2 ) THE appellant, a manufacturer of cement held a mining lease for excavating limestone. It was required to pay royalty on it at the rate specified in Second Schedule. Limestone appeared at item No. 8. The rate of royalty on it in the Act, when enacted was 5% of the sale price at the pits mouth subject to minimum of thirty-seven naye paise per tonne. The Schedule was amended in October 1962. It substituted item No. 8 and provided for payment of royalty at Rs. 0. 75 per tonne subject to rebate of Rs. 0. 38 per tonne to be given on limestone beneficiated by froth flotation method. The entry was again amended in 1968 and limestone was categorised as superior grade with 45% or more of Cao and inferior grade with less than 45% of Cao. The rate provided was at Rs. 1. 25 per tonne for the superior grade and seventy-five paise for the inf