The issuance of a demand notice without providing an opportunity for a hearing violates the principles of natural justice, necessitating its annulment and remand for proper inquiry.

Order :

K. MANMADHA RAO, J.

The Writ Petition No.20857 of 2024 is filed under Article 226 of the Constitution of India, seeking the following relief:

“…..to pass an appropriate Writ more particularly one in the nature of Writ of Mandamus declaring the Demand Notice No.1681/QL/RM/2019, dated 13.09.2024 issued by the respondent No.5 herein levying Rs.12,89,99,926/- (Rupees Twelve Crores Eighty Nine Lakhs Ninety Nine Thousand Nine Hundred and Twenty Six) towards Seignorage Fee, Penalty, DMF, MERIT Consideration Amount and IT under Rules 26(1) and 34(1) of Andhra Pradesh Minor Mineral Rules, 1966 and the consequential Seizure Notice in Form-I in Notice No.1681/QL/RM/2019, dated 16.09.2024 seizing the Stone Crushing Unit of the petitioner, without considering the explanation submitted by the petitioner as arbitrary, illegal, abuse of process of law, as one without jurisdiction, contrary to the principles of natural justice and Rules 26(1) and 34(1) of Andhra Pradesh Minor Mineral Rules, 1966 apart from being violative of the Fundamental and Constitutional Rights guaranteed to the petitioner under Articles 14, 19, 21 and 300-A of the Constitution of India and consequently set aside the Demand Notice No.1681/QL/RM/2019, dated 13.09.2024 issued by the respondent No.5 herein levying Rs.12,89,99,926/- (Rupees Twelve Crores Eighty Nine Lakhs Ninety Nine Thousand Nine Hundred and Twenty Six) towards Seignorage Fee, Penalty, DMF, MERIT, Consideration Amount and IT under Rules 26(1) and 34(1) of Andhra Pradesh Minor Mineral Rules, 1966 and the Seizure Notice in Form-I in Notice No.1681/QL/RM/2019, dated 16.09.2024 seizing the Stone Crushing Unit of the petitioner….”

2. Brief facts of the case are that the petitioner was granted a quarry lease for excavation of Road Metal and Building Stone in the land in an extent of Ac.3.843 Hectare in Survey Nos.908/1, 908/2 & 908/4, 913/1, 913/2 & 449 of Kutagulla Village, Kadiri Mandal, Ananthapuramu district (for short “quarry lease”) for a period of ten years by the 3^rd respondent vide proceedings No.637,QL-ATP/2020, dated 20.01.2021. Thereafter, a quarry lease deed was entered with effect from 17.04.2021 to 16.04.2031 on payment of yearly dead rent of Rs.65,000/- per hectare and a seigniorage fee @ Rs.90/- per Cubic meter (for short “Cum”) or Rs.60/- per Metric Ton for Road Metal and Building Stone vide proceedings No.1681/QL/RM/2019, dated 17.04.2021. While so, the 1^st respondent promulgated vide G.O.Ms.No.94, Irrigation and CAD (PW- COD) Department, dated 01.07.2003, wherein it has given modalities for issuance of tender and registration of contractors in connection with deduction of Seigniorage fee and other charges. Further, an amendment was carried out in Mines and Mineral (Development and Regulation) Act, 1957 (for short “the Act”) in the year 2015, wherein District Mineral Foundations were directed to be set up. Further, Andhra Pradesh District Mineral Foundation Rules, 2016 (for short “the Rules”) were issued vide G.O.Ms.No.36, Industries and Commerce (M-III) Department, dated 14.03.2016. Similarly, G.O.Ms.No.42, Industries and Commerce, dated 07.06.2021 ordered for levy of consideration in-addition to Seigniorage fee, DMF and MERIT on all minor mineral other than Granite. Therefore, the petitioner is liable to pay Seigniorage fee, DMF, MERIT, Consideration Amount and Income Tax for the mineral excavated by it. Whereas, the Government of Andhra Pradesh vide G.O.Ms.No.63, Industries, Commerce and Mines Department, dated 02.08.2021 amended the provisions of Andhra Pradesh Minor Mineral Concession Rules, 1966. Transit forms from 03.03.2023 were issued by M/s.Amigos Minerals and the requisite amounts would be collected by it like Seigniorage fee, DMF and MERIT, Consideration amount and IT. While things stood thus, on 30.07.2024, the Royalty Inspector and the Surveyor of the 5^th respondent office inspected the quarry lease held by the petitioner. As per the survey report, dated 30.07.2024 of the Mines