The State is legally competent to prescribe differential royalty rates for minor minerals based on their end-use or commercial value after beneficiation, as such classification constitutes a reasonable basis for taxation and is within the legislative authority granted by the governing mineral development legislation.

JUDGMENT :

Sujit Narayan Prasad, J.

1. The instant writ petition has been filed under Article 226 of the Constitution of India seeking therein for the following reliefs: -

“(i) For issuance of an appropriate writ/order/direction, including writ of certiorari for quashing/setting aside the notice issued vide Memo No.876/M dated 10.05.2022 issued by Respondent No.03 [Annexure- 6] wherein from 19.09.2019 March, 2022 the Respondent No.03 has directed the Petitioner to make payment of the amount of differential Royalty, D.M.F.T., Environment Cess and Income Tax on the sole ground that Stone Boulder excavated from the mines of the petitioner has been transported to a Stone Crusher for production of stone chips, as being wholly illegal, arbitrary and beyond the scope of the Jharkhand Minor Mineral Concession Rules, 2004.

(ii) For issuance of further appropriate writ/order/direction, including Writ of Declaration, declaring that action of the Respondent-State of Jharkhand in levying and collecting Royalty @ 708/- per hundred cubic feet i.e. @ Rs.250/- per cubic meter on removal of stone boulders from the mining lease premises of the Petitioner, on the sole ground that stone boulders excavated from the mines of the Petitioner have been transported to a Stone Crusher for production of Stone Chips, is wholly illegal, arbitrary and beyond the scope of Jharkhand Minor Mineral Concession Rules, 2004.

(iii) For issuance of further appropriate writ/order/direction, including Writ of Mandamus, restraining the Respondent-State of Jharkhand from collecting higher rate of Royalty @ 708/- per hundred cubic feet i.e. @ Rs.250/- per cubic meter on removal and transportation of stone boulders through the mechanism of ‘Jharkhand Integrated Mines and Minerals Management System Portal’ (hereinafter referred to as ‘JIMMS Portal’ for short), especially because the Petitioner is removing only ‘stone boulders’ from its mines and not ‘stone chips’ and the incidence of levy of royalty is at the stage of removal of mineral from the mines.

(iv) For issuance of further appropriate writ/order/direction for quashing/setting aside Notification dated 16^th September, 2019 [Annexure-3] by which Schedule-2 of the Jharkhand Minor Mineral Concession Rules, 2004 has been amended to the extent a higher rate of royalty @ 708/- per hundred cubic feet i.e. @ Rs.250/- per cubic meter has been prescribed for ‘Boulder, Gravel, Shingle which is used for making chips’.

(v) In alternative to prayer (iv) above, Petitioner prays for issuance of an appropriate writ/order/direction, including Writ of Declaration, declaring that the rate of royalty fixed @ 250/- cubic meter in respect of mineral for making stone chips cannot be applied to such mining lessees who are not having Processing Unit/Crusher Plant within their leasehold area.

(vi) For issuance of any other appropriate writ(s)/order(s)/direction(s) as Your Lordships may deem fit and proper in the facts and circumstances of the case.”

2. The brief facts of the case, as per the pleading made in the writ petition, required to be enumerated, which read as under: -

(i) It is the case of the petitioner that the dispute pertains to Mining executed by and between the Petitioner and the Respondent-State of Jharkhand for a period commencing from 07.11.2017 to 06.11.2027 pertaining to Mouza Hathigarh, Jamabandi No. 27, 41, 44, 56 & 57, Plot No. 1043/P, 1044, 1045, 1046/P, 1054, 1055, 1056, 1057 & 1058, Thana Littipara, having an area of 5.86 Acre situated in the District of Pakur.

(ii) The Petitioner is not having any crusher unit inside its mining lease area and the Petitioner's proprietor is havin