The court emphasized the importance of providing a copy of inspection reports and an opportunity of hearing before raising a demand against a party.

JUDGMENT :

1. Although, as per order of this Court dated 1.9.2022, the matter was to be heard on stay application; but, on the request of the learned counsels for the respective parties, the writ petition itself was heard on its merit at this stage.

2. This writ petition has been filed for quashing and setting aside the enquiry report dated 20.2.2020, enquiry report dated 8-9.4.2021, the show cause notice dated 22.6.2020, the orders dated 11.8.2020, 28.12.2021 and 30.12.2021 with a direction to the respondents to immediately restore the mining operation and business of the petitioner by issuing e-ravanna and refrain them from creating any hindrance or obstruction in the mining operation.

3. The relevant facts in brief as emerge from the memo of writ petition are that the petitioner is a partnership firm having in its favour a mining lease no.03/1993, Village Bhonda Gaon, Jagjeevanpur, Tehsil Weir, District Bharatpur which, initially was issued for mineral Silica sand and later on, mineral masonry stone was also added therein. Validity of the mining lease is upto 9.6.2047 and the petitioner has environment clearance from the Ministry of Environment and Forest for the mining activities. The petitioner was served upon with a show cause notice dated 22.6.2020 by the respondents, whereby, alleging irregularities in the mining activities, a fine of Rs.4,51,75,677 was proposed. The notice was replied by the petitioner on 6.8.2020. Vide order impugned dated 11.8.2020, a demand of Rs.4,51,75,677/- was raised towards fine and compound fee alleging illegal excavation and transfer of the minerals. On petitioner’s representation, the State Government, vide order dated 19.8.2020 constituted a three-member Committee to submit its report after enquiry within a period of a month. A two Member Committee constituted in pursuance of a corrigendum letter dated 26.3.2021, submitted its report on 9.4.2021 wherein, it broadly agreed with the earlier enquiry report dated 20.2.2020 whereupon, vide order impugned dated 30.12.2021, the demand raised vide order dated 11.8.2020 was maintained. Legality and validity of the inspection reports and the demand order has been assailed in the writ petition.

4. As per the reply filed by the respondents, inspection on both the occasions was carried out in presence of Shri Anil Parashar, a representative of the petitioner firm. It is stated that earlier also a committee was constituted on 5.11.2018 which, during its inspection on 13.12.2018, found certain irregularities entailing imposition of a penalty of Rs.48,15,642 which the petitioner deposited through challan dated 21.1.2019. In the inspection of the petitioner’s mine carried out from 4.12.2019 to 20.12.2019, illegal excavation and transportation of 82379.84 tonne of masonry stone and 18136.37 tonne of silica sand was found which culminated into imposition of a penalty of Rs.4,51,75,677 vide order dated 11.8.2020. It is stated that on account of retirement of one Member of the Committee on attaining age of superannuation, the remaining two members of the Committee inspected the site on 9.4.2021 and found the illegalities/irregularities in the mining activity based whereupon, the demand has been maintained. Dismissal of the writ petition is, therefore, prayed for.

5. The petitioner in rejoinder submitted that Shri Anil Parashar was neither its employee nor, he was ever authorised on its behalf to sign the inspection reports. It is submitted that while preparing the inspection report dated 20.2.2020, measurement of the pits already existing at the time the lease was granted to the petitioner in the year 1997, was not taken into consideration resulting into erroneous assessment and measurement of the mineral excavated.

6. Learned Senior Counsel Shri R.K. Agarwal, reiterating the averments made in the pleadings, submitted that since the show cause notice dated 22.6.2020 is based on the inspection report dated 20.2.2020 prepared, in turn, on the basis of inspection carr