JUDGMENT :

K. V. Viswanathan, J.

INDEX

1. The petitioners in the present writ petition are challenging the constitutional validity of the Explanation appended to Rule 38 of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (hereinafter “the 2016 Rules”) as being ultra vires Articles 14, 19(1)(g) of the Constitution of India and Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957 (for short “the MMDR Act”) to the extent that the rule provides for inclusion of payments made towards Royalty, District Mineral Foundation (“DMF”) and National Mineral Exploration Trust (NMET”) in the sale value. Equally, the Explanation to Rule 45(8)(a) of the Mineral Conservation and Development Rules, 2017 (hereinafter “the 2017 Rules”), which is in identical terms, is also challenged on the same ground.

SUMMARY OF FACTS: AN EARLIER ROUND IN THIS COURT : -

2. The petitioners earlier filed a Writ Petition (C) No. 715 of 2024 calling in question the validity of the impugned rules. A detailed judgment was passed on 07.11.2024, and the writ petition was disposed of on 19.05.2025. During the course of hearing of the said writ petition, it was noticed that when a situation with regard to non-deduction of payments made towards Royalty, DMF and NMET from the value of coal was provided for, the Central Government remedied the situation. During the course of hearing, it was brought to the notice of the Court that, on 06.04.2021, Ministry of Mines had constituted a Committee for examining the issue and on 25.05.2021, a notice was issued by the Committee inviting comments and suggestions on this issue and pursuant thereto, a Report dated 31.01.2022 was submitted by the Committee to the Ministry of Mines.

3. It was recorded in the said judgment dated 07.11.2024 that pursuant to the aforesaid Report, a notice dated 25.05.2022 initiating public consultation on amending the MMDR Act had also been issued. The relevant portion of the notice reads as under: -

"1. Calculation of ASP: Removing the cascading impact of royalty on royalty

(ii) A committee was constituted by the Ministry of Mines under chairmanship by Shri Praveen Kumar, IAS (Retd.) with members from Ministry of Mines, NITI Aayog, Ministry of Steel, Indian Bureau of Mines (IBM) and Indian Statistical Institute to examine the incidence of double calculation of royalty. The committee concluded that since the sale value already includes royalty, DMF and NMET, the lessee pays royalty on royalty, DMF and NMET. Due to this, there is an additional charge on the miners under the current methodology.

(vi) Accordingly, it is proposed to (i) introduce new section in the MMDR Act regarding ASP; (ii) the provision shall specifically provide that ex-mine price for determination of ASP shall exclude GST, export duty, royalty, DMF & NMET & such other levies as may be prescribed; (iii) the change will be applicable for all the MLs, whether auctioned/ granted before or after the commencement of the proposed MMDR Amendment Act, for the minerals removed or consumed from the leased area after the commencement of the said Act; and (iv) adoption of new formula only for the future dues for existing MLs arising af