The court affirmed that for mining leases, stamp duty calculations must account for anticipated royalty alongside dead rent per statutory provisions and established practices.

1. The issue involved in both the Writ Petitions are common and hence, they are taken up together and disposed of through this Common Order.

2. The case of the petitioner is that they are engaged in the business of manufacture and sale of cement. Limestone is the main raw material for the manufacture of cement. The petitioner therefore applied and has obtained various mining leases. It is the case of the petitioner that they have nearly 26 mining leases in various Districts. One such mining lease is for an extent of 70.25 acres of patta lands belonging to the petitioner. The lease was granted in favour of the petitioner for a period of 20 years through the Government Order issued in the year 1962 and this period ended in the year 1982. Thereafter, it was renewed from time to time upto the year 2017. When the third renewal was made for a period of 20 years from 1997 upto 2017, lease deed was executed in favour of the petitioner and the petitioner was directed to pay the stamp duty on the basis of the royalty payable. The petitioner made a representation and requested that the stamp duty shall be calculated only based on the annual dead rent and not on the annual royalty payable. Even though a rd clarification was sought for in this regard, there was no further development and the 3 respondent was insisting for preparing the lease deed by typing on a stamp paper to the value of Rs.9,52,270/-. According to the petitioner, while arriving at this quantum, the respondents have fixed the rent based on the anticipated royalty. On this amount, the petitioner had to pay 1% towards the stamp duty. Aggrieved by the same, WP.No.29364 of 2005 was filed challenging the proceedings of the District Collector dated 20.5.2005.

3. Insofar as WP.No.6706 of 2006 is concerned, the mining lease pertains to an extent of nearly 437.07 Hectares which included both patta lands and poramboke lands at Perambalur District. In this case, the petitioner requested for granting mining lease for 30 years. The Government of Tamil Nadu, through a Government Order dated 17.10.2005, granted mining lease to the petitioner to an extent of 160.73.0 hectares. On 22.6.2006, the District Collector directed the petitioner to submit the lease agreement by typing on a stamp paper to the value of Rs. 84,46,988/-. Even in this case, the grievance of the petitioner is that the respondents have calculated the annual rent based on the anticipated royalty payable without fixing it on the basis of the dead rent. Aggrieved by the same, the present Writ Petition was filed.

4. A counter affidavit has been filed by the 2 respondent in WP.No.29364 of 2005 and the relevant portions in the counter affidavit are extracted hereunder:
8. It is submitted that the petitioner company was directed by the third respondent vide letter Rc. No. M2/28230/ 2005, dt. 20.05.2005 to produce stamp paper to the value of Rs.9,52,270/- for execution of lease deed. The stamp duty was arrived based on the actual production of limestone and the royalty remitted by the petitioner company for the period from 1997-98 to 2004-2005 and the proposed production of limestone as provided in the mining plan approved by Indian Bureau of Mines vide Lr.No. TN/TNL/MP/Lst./928/Mds. dt.06.02.1997 and royalty payable by the petitioner for the period from 2005-06 to 2016-17 were taken into account. The details are as follows:
1. Actual production and transportation of Limestone for the period from 1997-98 to 2004-05 (8 years). 5,34,930 M.Ts. 2. Proposed production of Limestone for the period from 2005-06 to 2016-17 (12 Years) as per the mining plan approved by Indian Bureau of Mines.(6 th year production of Limestone i.e., 1,31,750 MT was taken for arriving the proposed production of limestone for theremaining 12 years.1,31,750 X 12= 15,81,000). 15,81,000 M.Ts. Total (1+2) 21,15,930 M.Ts. 3. Rate of royalty for Limestone Rs.45/- per metric tonne 4. Anticipated royalty for the period from 1997-98 to 2016-17 (20 years) Rs.9,52,16,850/-