Deccan Cements Ltd. vs Asstt. Dir. of Mines and Geology

S.R. Nayak, J.—The Petitioner has initially sought for a Mandamus declaring that the Cess and Other Taxes on Minerals (Validation) Ordinance 7 of 1992 which was subsequently replaced by the Cess and Other Taxes on Minerals (Validation) Act 16 of 1992 as unconstitutional and for a further declaration that the said Ordinance and Act do not authorise the recovery of cess on royalty or MRT which has not been collected so far for the period ending up to 4-4-1991 and for a consequential direction to the 1st respondent viz., the Assistant Director of Mines and Geology, Nalgonda from receiving cess or royalty and MRT from 28-4-1988 and 8-2-1990 respectively till 4-4-1991.

This Court passed the modified interim order on 22-2-1993 in WPMP. No. 8129 of 1993 and other connected WPMPs. which read as under :

"It is directed that if the petitioner-assessees deposit the outstanding cess up to 4-4-1991 in this Court within twelve weeks from today, the respondents are directed not take coercive measure to recover the outstanding amount. If the amount is deposited in this Court, respondents will be at liberty to withdraw the same on giving an undertaking to refund the same with interest at the rate of 15 per cent per annum; in the event, the petitioner succeed in the writ petitions. If the amount is not deposited within the stipulated time, respondents will be at liberty to recover the same in accordance with law."

It appears that against the said modified order, a SLP was filed in the Apex Court and the Apex Court dismissed the said S.L.P.

Sri Srinivas Reddy, learned Counsel for the petitioner would tell us that subsequent to the dismissal of the SLP by the Apex Court, cess was collected from the petitioner for the period ending up to 4-4-1991.

In the light of the Judgment of the Apex Court in District Mining Officer and Others Vs. Tata Iron and Steel Co. and Another, the challenge to constitutional validity of the Cess and other taxes entitled for a declaration that the respondents legally cannot recover cess on royalty and MRT from the petitioner from 28-4-1988 and 8-2-1990 respectively till 4-4-1991.

In that view of the matter, we allow this writ petition and a direction shall issue to the 1st respondent to refund the cess on royalty and MRT, if the same is collected from the petitioner for the period from 28-4-1988 and 8-2-1990 respectively till 4-4-1991 to the petitioner within a period of six weeks from the date of receipt of a copy of this order. No costs.