Arun Mishra, J.

( 1. ) In these writ petitions, petitioners; Northern Coal Fields Ltd. and M/s Hmdalco Industries Limited and anr. Assailed the constitutional validity of the Rules known as the Terminal Tax (Assessment and Collection) on the Goods Exported from Madhya Pradesh Municipal Limites, Rules, 1996, inasmuch as Corporation is collecting the terminal tax @ Rs.5/- per ton.

( 2. ) It is averred in W.P. No. 1729/03 filed by the Northern Coal Field Limited that the company is engaged in extraction and sale of coal, mainly to the core sectors for production and generation of electrical energy. Coal is extracted from the Coal bearing Areas acquired under Coal bearing Areas (Acquisition and Development) Act 1957. Section 11 of the Coal Bearing Areas Act empowers the Central Govt, to direct vesting of land or rights in Govt. Company. Section 9 of the Mines and Mineral (Development and Regulation) Act 1957, (hereinafter referred to as MMRD Act) provides that for payment of royalty. Petitioner submitted that MMRD Act occupies the entire field and the State Legislature is denuded of legislative competence to enact any law on the subject in view of declaration made in section 2 of the MMRD Act. Union List i.e. List-I Entry 54 which provides Regulation of mines and mineral development to the extent to which such regulation and development under the control of Union is declared by Parliament by law to be expedient in the public interest. Entry 97 of List-I of Seventh Schedule has also been relied upon which provides any other matter not enumerated in List II or List III including any tax not mentioned in either of those Lists. Entry 23 of List-II of the State List contained in Seventh Schedule has also been relied upon which provides regulation of mines and mineral development subject to the provisions of List-I with respect to regulation and development under the control of the Union. The Municipal Corporation has passed a resolution on 30.4.2002 by proposal No. 13 and decided to impose terminal tax on coal @ Rs .5/- per ton. A letter (P/2) dated 30.8.2002 was sent to the petitioner. Petitioner wrote a letter (P/3) requesting to clarify whether the same is applicable to the petitioner company or not. In reply Municipal Corporation sent a letter (P/4) enclosing the copy of notification dated 27.5.1995 in which map was published showing the boundaries of Municipal Corporation, Singrauli. Petitioner objected to the action and sent a letter (P/5). Vide demand letter (P/6) dt. 18.11.2002 petitioner was required to submit the details regarding export of coal and deposit money at the rate prescribed by the Corporation. Petitioner submits that the State Legislature is denuded of legislative competence under Entry 23 of List-II of the Seventh Schedule of the Constitution of India to impose any tax on minerals. With reference to rule 3 of the Rules of 1996 it is submitted that petitioner is neither engaged in export of the coal nor it sells coal for purpose of export. Purchasers are not obliged to export coal. The object of sale is not to export of coal outside the municipal limit. It is also submitted that section 132(6)(n) of Municipal Corporation Act 1956 authorizes the corporation to impose a Terminal Tax on goods or animals exported from the limits of the Corporation. As no export of coal is taking place tax cannot be collected. Rule 3 of the Rules of 1996 is arbitrary. Section 132, 133 of the Municipal Corporation Act so far as gives power to Municipal Corporation, Singrauli to collect any tax on coal are arbitrary and in direct conflicts with MMRD Act. Entry 89 of Union List provides for imposition of terminal tax on goods or passengers carried by Railways, Sea or Air, taxes on railway fares and freights. It is submitted that Entry 56 has to be read with Entry 52 of the List-II. Hence, petition has been preferred.

( 3. ) In the return filed on behalf of the State of M.P. it is contended that as per the provision of Article 243 X