Kartick Chandra Roy vs State of West Bengal

N.K. Mitra, J.—Having heard the learned Advocates for the parties and considering the facts and circumstances of the case, I hold that in view of the latest judgment of Supreme Court in the case of Orissa Cement Ltd. v. State of Orissa AIR 1991 S.C. 1678, wherein it was held inter alia that royalty for carrying on mining operations or tax thereon cannot be equated to land revenue, the impugned royalty cannot be sustained in law. Mines and Minerals (Regulation and Development) Act, 1957 (MMRD Act) is a law of Parliament. Sub-section (3) of Section 9 of the Central Act is a clear bar on the State Legislature taxing royalty so as, in effect, to amend the second Schedule to the Central Act and if royalty for carrying on mining operation is taken and/or demanded by the State as a tax falls under Entry 50, it would be ultra vires in view of the provisions of the Central Act as levying of such royalty by the State Government cannot be treated as fee, falling under Entry 66 of List II. The levy cannot be co-related to any services rendered or to be rendered by the State to the class of persons from whom the levy is collected. Even assuming that the State Legislature can impose a fee only in respect of any of the matters in the State List, and is covered under Entry 23 of such List, such entry is subject to the provisions of List I with respect to Regulation and Development of Mines and Minerals under the control of the Union under Entry 54 of list I. Regulation of Mines and Minerals Development is in the field of Parliamentary Legislation to the extent which such regulation and development under the control of the Union is declared by Parliament by law to be expedient "in the public interest. Such a declaration is contained in Section 2 of the MMRD Act, 1957. It, therefore, follows that any State Legislation encroaching the field covered by the MMRD Act, 1957, will be ultra vires. Imposition of royalty in the present case under the Act is beyond the purview of the State Legislature by reason of the provision of MMRD Act. Accordingly, the impugned imposition of royalty is quashed being ultra vires the Mines and Minerals (Development and Regulation) Act, 1957, being assessed without the legislative competence and/or authority of the State Government. The Civil Order is thus allowed.

There will be no order as to costs.

Impugned claim of additional royalty under West Bengal Mines and Minerals Rules, 1973 declared ultra vires and impugned notices are quashed.