AI Overview...
- Royalty on Washed Coal - Main points and insights:
- Royalties are generally payable on the quantity of coal removed from the mine, whether raw or processed (e.g., washed) Tata Iron And Steel Co. Ltd. VS State Of Bihar - Jharkhand, Tata Steel Limited VS State of Jharkhand - Jharkhand, Tata Steel Limited VS Union of India - Jharkhand.
- Several judgments clarify that royalty should be calculated based on the weight or tonnage of coal as removed from the mining area, including after washing or processing Tata Steel Limited VS State of Jharkhand - Jharkhand, TATA STEEL LIMITED THROUGH ITS CHIEF LEGAL AND COMPLIANCE MRS MEENA LALL vs UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF COAL AND ORS - Jharkhand, Tata Steel Limited VS Union of India, Through the Secretary, Ministry of Coal, New Delhi - Jharkhand.
- The applicability of royalty on washed or processed coal has been upheld, with courts emphasizing that the removal of coal from the lease area—after washing—constitutes the basis for royalty calculation TATA STEEL LIMITED THROUGH ITS CHIEF LEGAL AND COMPLIANCE MRS MEENA LALL vs UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF COAL AND ORS - Jharkhand, Tata Steel Limited VS State of Jharkhand - Jharkhand.
- Some legal provisions, such as Section 9 of the MMDR Act, do not explicitly prescribe that royalty must be paid on processed or washed coal, but courts have interpreted that royalty is payable on the weight of coal as extracted and removed Tata Iron And Steel Co. Ltd. VS State Of Bihar - Jharkhand, TATA STEEL LIMITED THROUGH ITS CHIEF LEGAL AND COMPLIANCE MRS MEENA LALL vs UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF COAL AND ORS - Jharkhand.
- Notifications by the Central Government have notified special rates for washed coal, indicating that royalty rates can differ for processed coal Central Coalfields Limited, through its Project Officer, Kargali Washery Sri Achindra Lal Singh, son of Mahadeo Singh VS State of Jharkhand - Jharkhand.
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Disputes have arisen regarding whether royalty should be paid on raw versus washed coal, with prior practice often paying on washed coal, but some authorities asserting liability only on raw coal Tata Steel Limited VS Union of India - Jharkhand.
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Analysis and Conclusion:
- The prevailing legal stance is that royalty is payable on the quantity of coal as it is removed from the mine, including after washing or processing, provided the removal occurs within the lease area.
- Courts have consistently held that even processed or washed coal, once extracted and removed from the lease area, is subject to royalty, unless explicitly exempted by law or notification.
- The absence of explicit statutory language in some provisions does not preclude the levy of royalty on processed coal, as long as removal from the lease area has occurred.
- Disputes often involve interpretation of notifications and the scope of the law, but the general principle favors royalty payment on the weight of coal at the point of removal, whether raw or processed Central Coalfields Limited, through its Project Officer, Kargali Washery Sri Achindra Lal Singh, son of Mahadeo Singh VS State of Jharkhand - Jharkhand, Tata Steel Limited VS Union of India, Through the Secretary, Ministry of Coal, New Delhi - Jharkhand.
References: - Central Coalfields Limited, through its Project Officer, Kargali Washery Sri Achindra Lal Singh, son of Mahadeo Singh VS State of Jharkhand - Jharkhand - Tata Steel Limited VS Union of India - Jharkhand - Tata Iron And Steel Co. Ltd. VS State Of Bihar - Jharkhand - Tata Steel Limited VS State of Jharkhand - Jharkhand - Tata Steel Limited VS Union of India, Through the Secretary, Ministry of Coal, New Delhi - Jharkhand - Tata Steel Ltd. VS Union of India - Supreme Court - TATA STEEL LIMITED THROUGH ITS CHIEF LEGAL AND COMPLIANCE MRS MEENA LALL vs UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF COAL AND ORS - Jharkhand - TATA STEEL LIMITED THROUGH ITS CHIEF LEGAL AND COMPLIANCE MRS MEENA LALL vs UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF COAL AND ORS - Jharkhand - Karnataka Emta Coal Mines Limited VS Central Bureau Of Investigation - Supreme Court - M/S. KARNATAKA EMTA COAL MINES LTD. vs CENTRAL BUREAU OF INVESTIGATION - Supreme Court
Search Results for "Royalty on Washed Coal"
2023 0 Supreme(Jhk) 987 • India - Jharkhand
SUJIT NARAYAN PRASAD, NAVNEET KUMAR
on coal mined and washed at washeries, claiming that the land was acquired under the Coal Bearing Act, 1957 and royalty was paid ... Royalty - Mining - Coal Bearing Area (Acquisition and Development) Act, 1957 - Section 9(3) of the MMDR ... Issues: The issues included the applicability of royalty payment on processed coal, the lack of show cause ... special rate for washed coal notified by the Central Government i....
2015 0 Supreme(Jhk) 885 • India - Jharkhand
VIRENDER SINGH, P.P.BHATT
The petitioner, Tata Steel Ltd., challenged the demand notices issued by the District Mining Officer, Ramgarh, for payment of royalty ... The court also emphasized the slow granting of stay in revenue matters and the importance of royalty as a means of revenue realization ... Prior to 1984, the petitioner was paying royalty on washed coal, but in the year 1984, the Department of Mines, State of Bihar decided that petitioner was liable to pay royalty on raw coal and r....
2002 0 Supreme(Jhk) 779 • India - Jharkhand
SUDHANSU JYOTI MUKHOPADHAYA, LAKSHMAN URAON
Mines and Minerals (Regulation and Development) Act, 1957 – Section 9 – royalty to be determined on the quantity of extraction payable ... No. 01/84(R) seeking a declaration that it was liable to pay royalty on the tonnage of the washed coal when it is removed from the coal washiery. ... The writ petitioner is liable to pay royalty on the weightage of coal. ... 2. As per the decision aforesaid in C.W.J.C. No. 01/84(R) the appellant-TISCO paid royalty....
2014 0 Supreme(Jhk) 385 • India - Jharkhand
R.BANUMATHI, APARESH KUMAR SINGH
is payable on such processed mineral or ROM—Petitioner is liable to pay royalty only on mineral removed from its mining lease area ... is removed from the mining lease area or if ROM removed from mining lease area for processing to outside the leased area, then royalty ... , 1960 - Rules 64-B, 64-C and 51 r/w Section 9 of Mines and Minerals (Development and Regulation) Act, 1957---Demand notice for royalty ... By the own version of the petitioner, the Run-of-Mine (ROM) coal is washed/processed in the l....
2018 0 Supreme(Jhk) 338 • India - Jharkhand
H.C.MISHRA, PRAMATH PATNAIK, S.N.PATHAK
the pits mouth only then royalty can be claimed– rules 64B and 64C come within the ambit of processed minerals also in particles ... from the riverbed – it cannot be said that article 14 was hit these rules , there is no discrimination in the field of royalty papers ... Minerals (Development and Regulation) Act, 1957 - validity of the rules was challenged – a higher charge was made on processed coal ... Counsel submits that Section 9 of the MMDR Act nowhere prescribes that royalty shall be chargeable on washed#....
2015 0 Supreme(SC) 231 • India - Supreme Court
H. L. DATTU, MADAN B. LOKUR, A. K. SIKRI
Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years.} they were liable to pay royalty at the rates mentioned in the Second Schedule to the MMDR Act on the tonnage of washed coal, that is after raw coal ... The State of Bihar (at that time) was of the view that royalty was payable at the rate mentioned in the Second Schedule to the MMDR Act on the tonnage of the extracted coal#HL_E....
• India - Jharkhand
In view of the fact that coal is removed from the leased area, only after it is washed, the petitioner is liable to pay royalty on the weightage of that coal.” 6. ... Counsel submits that Section 9 of the MMDR Act nowhere prescribes that royalty shall be chargeable on washed or the processed mineral after beneficiation. ... There is no dispute between the parties that the coal as extracted from the coal mine is crushed into pieces and thereafter it i....
• India - Jharkhand
In view of the fact that coal is removed from the leased area, only after it is washed, the petitioner is liable to pay royalty on the weightage of that coal.” 6. ... Counsel submits that Section 9 of the MMDR Act nowhere prescribes that royalty shall be chargeable on washed or the processed mineral after beneficiation. ... There is no dispute between the parties that the coal as extracted from the coal mine is crushed into pieces and thereafter it i....
2024 0 Supreme(SC) 686 • India - Supreme Court
HIMA KOHLI, AHSANUDDIN AMANULLAH
(A) Prevention of Corruption Act, 1988 - Sections 13(1)(d) and 120-B of IPC - Allegations of conspiracy and misappropriation of coal ... /royalty paid on the rejects. ... The assumption of the CBI that the exact quantity of rejects that have been sold off cannot be ascertained is a self-serving statement inasmuch as for the purpose of blending of coal, Gupta has to purchase the raw coal/washed coal and pay royalty/sales tax on the same whereas there is no sales tax ......
2024 Supreme(Online)(SC) 7967 • India - Supreme Court of India
The allegations stemmed from a CAG audit report claiming financial loss due to improper disposal of coal rejects. ... ), 13(2) - Indian Penal Code, 1860 - Sections 120-B, 409, 420 - Appeals against the Order on Charge and framing of Charges in a coal ... block allocation case - The appellants challenged the framing of charges alleging conspiracy and misappropriation of coal rejects ... royalty / sales tax on the same whereas there is no sales tax / royalty paid on the rejects. ... AND DELIVERY OF #HL_ST....
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