S.J. Mukhopadhaya & Lakshman Uraon, JJ.

1. The appellant-Tata Iron & Steel Company Ltd. (TISCO for short) earlier moved before this Court in C.W.J.C. No. 01/84(R) seeking a declaration that it was liable to pay royalty on the tonnage of the washed coal when it is removed from the coal washiery. The case was heard by the learned single Judge who taking into consideration Section 9(2) of the Mines Minerals (Regulation Development) Act, 1957, held that the royalty is payable on the coal removed from the leased area and so long it is not removed, no royalty is payable. The writ petitioner is liable to pay royalty on the weightage of coal.

2. As per the decision aforesaid in C.W.J.C. No. 01/84(R) the appellant-TISCO paid royalty on the weightage of washed coal. Subsequently similar issue fell for consideration before the Supreme Court in the case of State of Orissa and Ors. v. Steel Authority of India Ltd., reported in JT 1998 (5) SC 348. In the said case, the issue raised was whether upon the quantity of mineral extracted or upon the quantity arrived at after processing the royalty is to be paid. The Supreme Court held that processing amounts to consumption and hence royalty is t