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IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Sanjay K.Agrawal
South Eastern Coalfields Ltd. – Appellant
Versus
State of Chhattisgarh, through Secretary, Department of Mining, Mantralaya – Respondent
| Table of Content |
|---|
| 1. common facts and issues in petitions. (Para 1 , 2 , 3 , 4) |
| 2. arguments regarding legality of additional royalty. (Para 6 , 7 , 9 , 10) |
| 3. court's examination of royalty payment and authority. (Para 12 , 13 , 14 , 21 , 22) |
| 4. definition and importance of invoice in royalty calculation. (Para 15 , 17 , 18 , 20) |
| 5. court's order to quash previous demands. (Para 23 , 24) |
ORDER :
Sanjay K. Agrawal, J.
1. Since common question of law and fact is involved in these two writ petitions, except the period of demand, they have been clubbed together, heard together and are being decided by this common order.
W.P.(C)No.1691/2013
2. Invoking the writ jurisdiction of this Court, the petitioner herein seeks to challenge the order dated 2-9-2013 (Annexure P-7) passed by the Collector (Mining Department), Korba by which the petitioner SECL has been directed to pay an additional amount of ₹ 7,34,135-26 towards royalty.
W.P.(C)No.1645/2013
3. Similarly, the petitioner seeks to challenge the orders dated 12-6-2013 (Annexure P-2) and 31-8-2013 (Annexure P-4) passed by the Collector (Mining Department), Korba by which the petitioner SECL has been directed to pay an additional amount of ₹8,09,163-
Only the Central Government can amend royalty rates under Section 9(3) of the MMDR Act, and demands for additional royalty based solely on audit findings lack legal basis.
Royalty is a contractual obligation distinct from taxes; amendments to regulations cannot retrospectively apply to existing contracts unless explicitly stated.
Subordinate legislation must align with the parent Act; regulations exceeding authority are invalid. Royalty payment under mining laws can only be for minerals actually removed or consumed.
The demands raised by the Deputy Director of Mines were found to be unsustainable in the eye of law, in view of the law laid down in National Mineral Development Corporation Limited v. State of M.P.,....
(1) Levy of tax on advertisement(s) – Imposition of royalty cannot be equated with imposition of tax/levy – Royalty and tax cannot be equated – Royalty and tax are not one and same.(2) Estoppel – Con....
Contractors are liable to pay royalties only upon extraction of minerals, not based on purchasing, and may not be compelled to produce certificates without proper liability.
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