IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) KOHIMA BENCH
DEVASHIS BARUAH
Mahabir Prasad Agarwalla, S/o. Lt. Kirorimal Agarwalla – Appellant
Versus
State Of Assam, Rep. By The Commissioner And Secretary To The Govt – Respondent
JUDGMENT :
DEVASHIS BARUAH, J.
Heard Mr. O. P. Bhati, the learned counsel appearing on behalf of the petitioner in the instant batch of writ petitions. Mr. P. Nayak, the learned counsel appears on behalf of the PWD who have been arrayed as respondents in the instant proceedings.
PREFACE
2. All the writ petitions are filed by the same petitioner who claims that he is a Class-I registered contractor with the Public Works Department of the Government of Assam. Various contract works were issued to the petitioner and the details of which have been mentioned in the present writ petitions. It is however very pertinent to take note of that these contract works were awarded to the petitioner prior to 2015 and this aspect is apparent from the fact that the writ petitions were filed in the year 2015. The grievance of the petitioner in all the writ petitions was that the Respondent Authorities have deducted huge amounts of money against the bills of the petitioner on the ground of payment of royalties which was not permissible as per law.
CLAIMS OF THE PETITIONER IN THE FIVE WRIT PETITIONS
3. This Court finds it relevant to take note of the claims of the Petitioner in the five writ petitions and wi


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.
Royalty obligations under the Assam Minor Mineral Concession Rules 2013 do not extend to private construction projects, only applying to government-related works.
Royalty obligations under the Assam Minor Mineral Concession Rules 2013 do not extend to private construction projects, only applying to government-related works.
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.
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.
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