HON’BLE SRI JUSTICE K. LAKSHMAN

ORDER

Heard Sri Pannala Srinivas, learned counsel for the petitioner and learned Assistant Government Pleader for Mines and Geology appearing for respondents.

2. This writ petition is filed to declare the impugned order No.35 of 2011 dated 07.01.2011 passed by respondent No.1 in Revision Application File No.01(16)/2010-RC.II, dated 06.12.2010 of respondent No.3 as illegal and consequently remand the same to respondent No.1 for disposal in accordance with law.

FACTS OF THE CASE

3. The petitioner is a partnership firm and it has established a Sponge Iron Plant in Sy.No.346 of Appala Narsimhapuram Village, Nelakondapally Mandal, Khammam District in the year, 2007 at an approximate cost of Rs.2 Crores. The production capacity of the plant is 20 Metric Tons per day and it is able to run the plant with 40-45% efficiency only i.e. producing 8 to 9 Metric Tons of Sponge Iron per day. The petitioner firm is regularly filing its returns before the Sales Tax and Central Excise authorities.

4. While the matter stood thus, on 25.10.2008, the officials of the Regional Vigilance and Enforcement Officer, Warangal, visited the Plant and seized the records with regard to the procurement of Iron ore on the ground that the Petitioner firm consumed a quantity of 11,852.68 Metric Tons of Iron ore for which the Royalty/Seigniorage fee was not covered. They further observed that 437.5 MT was found excess transportation by tampering the transit form of Mining Lease holder, Sri N. Swadesh Rao. Respondent No.2 has issued notice dated 17.04.2009 to the petitioner firm basing on the report of the Regional Enforcement and Vigilance Officer, Warangal. The Petitioner firm submitted reply dated 08.05.2009 to the said notice. Thereafter, the office of respondent No.3 issued show cause notice dated 06.07.2010 to the petitioner firm and the Petitioner submitted reply dated 05.08.2010 to the said show cause notice. Respondent No.3 once again issued notice dated 11.08.2010 and the petitioner firm submitted reply dated 15.09.2010.

5. Without considering replies submitted by the petitioner firm, respondent No.3 issued notice No.2943/MD3/2005 dated 09.11.2010 demanding to pay Rs.48,71,452/- towards royalty for having consumed 11,852.68 MTs of Iron ore without permit as per Sec.21 (5) of the Mines and Minerals (Development & Regulation) Act, 1957 ( for short, ‘the Act’). Challenging the said notice dated 09.11.2010 issued by respondent No.3, the petitioner firm has filed Revision Application vide File No.02/(16)/2010-RC.II on 06.12.2010 before respondent No.1 - Tribunal. The Tribunal conducted hearing on 07.01.2011 and disposed it of at the admission stage holding that the petitioner firm has got a provision to file an appeal under Rule 12 of the A.P. Mineral Dealers Rules, 2000 (for short, ‘the Rules’) framed under Section 23 (C) (3) of the Act, which reveal that the Central Government shall have no power to revise any order passed by a State Government or any of its authorized officers or any authority under the Rules made under sub-sections (1) and (2).

6. Thus, according to the petitioner, respondent No.1 erred in stating that it has no jurisdiction to entertain the Revision Application dated 06.12.2010 on the ground that the petitioner firm does not fall under the definition ‘Dealer’ as mentioned in Rule-2(1) (d) of Rules, 2000 as held by the erstwhile High Court of Andhra Pradesh in Novel Granites Limited v. State of Andhra Pradesh, ALT 2010 (2) 793 =AIR 2009 AP 107. Respondent No.1 erred in holding that the petitioner firm has set a factory where the mineral is stored before it is processed/manufactured and the petitioner firm is obligated in law to show to the officials that the mineral present at the time of inspection has suffered payment of Seigniorage fee. In the present case, no mineral has been seized by the officials of the Vigilance Department at the time of inspection on 25.10.2008. The Impugned notice dated 09.11.2010 is bas