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2024 Supreme(Telangana) 124

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Alok Aradhe, Anil Kumar Jukanti, JJ.
M/s.Kesoram Cement, Kmnr Dist. - Appellant
Versus
Prl.Secy., Environment & Ors. - Respondents
Writ Petition No.1809 of 2011; 10512 and 26340 of 2010 and 31524 of 2013
Decided On : 25-04-2024

Advocates appeared:
Karthik Ramana Puttamreddy, for the Petitioner; GP for Forests, for the Respondent.

Headnote:

Forest Produce Transit Rules - Levy - Section 29 of the Andhra Pradesh Forest Act, 1967 - The court discussed the amendment of Rule 5 (5) of the Andhra Pradesh Forest Produce Rules, 1970 as amended by G.O.Ms.No.35, Environment, Forests, Science & Technology Department, dated 06.02.2010, which enhanced the permit fee from Rs.500/- per 100 permits to Rs.10/-per tonne/cmt in respect of major minerals/minor mineral/granite. The court analyzed the legal provisions under Section 29 of the Act, 1967, and the Rules, 1970, and their interpretation in light of compensatory fee, regulatory fee, and quid pro quo, ultimately concluding that the amended rule is regulatory in nature and does not call for any interference.

Fact of the Case:

The petitioners, companies with cement plants, challenged the amendment of Rule 5 (5) of the Andhra Pradesh Forest Produce Rules, 1970, which increased the permit fee for major minerals/minor minerals/granite. They argued that the levy was exorbitant, confiscatory, and discriminatory, violating Article 14 of the Constitution of India.

Finding of the Court:

The court found that the amendment of Rule 5 (5) was within the rule-making power delegated under Section 29 of the Act, 1967. It held that the levy was regulatory in nature and did not require a quid pro quo. The court dismissed the writ petitions, concluding that the contentions advanced by the petitioners were devoid of merits.

Issues: The main issues revolved around the nature of the levy under the amended Rule 5 (5) and its compliance with legal provisions, including compensatory fee, regulatory fee, and quid pro quo. The petitioners also raised concerns about the exorbitant, confiscatory, and discriminatory nature of the levy.

Ratio Decidendi: The court's decision was based on the interpretation of Section 29 of the Act, 1967, and the Rules, 1970, in light of compensatory fee, regulatory fee, and quid pro quo. It relied on precedents to establish that the levy was regulatory in nature and did not require a quid pro quo.

Final Decision: The court dismissed the writ petitions, upholding the amendment of Rule 5 (5) as regulatory in nature and not calling for any interference.

COMMON ORDER

Anil Kumar Jukanti, J. - Mr. Karthik Ramana Puttamreddy, learned counsel appears for the petitioners in W.P.No.1809 of 2011 and W.P.No.26340 of 2010 and 31524 of 2013.

Mr. Madas Bharath Chandra, learned counsel appears for Mr. Bodduluri Srinivasa Rao, learned counsel for the petitioner in W.P.No.10512 of 2010.

Mr. Mohd. Imran Khan, learned Additional Advocate General appears for the State of Telangana.

2. These writ petitions are filed praying to grant the following relief:

    '... to issue a Writ of Mandamus or any other appropriate order or direction declaring the amendment of Rule 5 (5) of the Andhra Pradesh Forest Produces Rules, 1970 as amended by G.O.Ms.No.35, Environment, Forests, Science & Technology Department, dated 06.02.2010, which enhanced the permit fee from Rs.500/- per 100 permits to Rs.10/-per tonne/cmt in respect of major minerals/minor mineral/granite is arbitrary, irrational and unconstitutional, and pass such other order or orders as the Hon'ble Court may deem fit and proper in the circumstances of the case.'

    3. Brief facts:

    Petitioner companies have cement plants at Basanthnagar, Karimnagar District. The raw material required for manufacturing the portland cement is limestone. A mining lease was granted in forest land of Palkurthi, Takkalapalli and Putnoor Reserve Forest, Ramagundam Mandal, which was valid for a period of 20 years and permission was obtained from Government of India till 17.08.2016 for the forest land to be put to non-forest use. Based on Ministry of Environment and Forest proceedings, Government of Andhra Pradesh issued G.O.Ms.No.215, dated 05.08.2006, granting renewal of lease of Acs.890.20 guntas which included forest land of Acs.570.00. The Government of Andhra Pradesh also requested petitioners to obtain further clearance for a further period of ten years i.e., 18.08.2016 to 17.08.2026 from forest department.

    3.1. The petitioner companies pay royalty on the mineral mined to State Government. The authorities under Mines and Minerals (Regulation and Development) Act, (for short, 'the MMRD Act') regulate the mining operations and collection of revenue. Section 2 (g) of Andhra Pradesh Forest Act, 1967 (for short, 'the Act, 1967'), defines the expression 'forest produce'. Under Section 29 of the Act, 1967, State Government is empowered to make rules to regulate the transit and possession of timber and other forest produce. In exercise of such power, the Government made Rules called Andhra Pradesh Forest Produce Transit Rules, 1970 (for short, 'the Rules, 1970').

    3.2. As per amended Rule, levy which was on the basis of number of permits changed to levy on the basis of charge per permit per tonne, per cubic metre, per lorry, per Cart of forest produce. Charge per permit was fixed at Rs.10.00 per tonne/cmt in respect of major minerals/minor mineral/ granite. The petitioners were directed by respondent No.3 to place an indent for Transit Permit in Form-I with fee in terms of G.O.Ms.No.35, dated 06.02.2010 based on quantity of mineral extracted per month. These writ petitions are filed to declare the amendment to Rule 5 (5) of the Rules, 1970 as amended by G.O.Ms.No.35, dated 06.02.2010, enhancing the permit fee from Rs.500.00 for 100 permits to Rs.10.00 per tonne/cmt in respect of major minerals/minor minerals/ granite as arbitrary, irrational and unconstitutional.

    4. It is submitted by learned counsel for petitioners that as per Rules, 1970, for supply of Form-I and Form-II permits in triplicate, a rate of Rs.5.00 per 100 permits in triplicate was charged. It is further submitted that the relevant rule stood amended in the year 2001 and levy at rate of Rs.500.00 per 100 permits was being charged. By amendment in the year 2010, for supply of Form-I and Form-II permits in triplicate charges per permit have been levied on per tonne basis in respect of mineral extracted by the petitioners. I

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