AMALGAMATED COALFIELDS LIMITED THE AMALGAMATED COALFIELDS LIMITED Vs. JANAPADA SABHA CHHINDWARA:JANAPADA SABHA CHHINDWARA

JUDGEMENT

(1.) These ten appeals and two writ petitions have been placed for hearing together in a group because they arise common questions of law. The appellants in these matters are all colliers holding mining lease under the Government of Madhya Pradesh for the extraction of coal from collieries situated in the Chhindwara District. The respondent, Janapada Sabha, Chhindwara, has issued notices against them calling upon them to pay coal tax "for coal manufactured at the mines, sold or export by rail or sold otherwise than for export by rail within the jurisdiction of the original. Independent Mining Board for the said area". It appears that the mining area in question was within the territorial limits of the Independent Mining Local Board which had the status and powers of a District Council under the Central Provinces Local Self-Government Act, 1920 (hereinafter called the Act). The respondent Sabha is the successor of the said Mining Board and, therefore, claims to be entitled to continue the levy and recover the tax in question.

(2.) On the 12th March, 1935, the Mining Board exercising its powers under S. 51 of the Act, resolved to levy coal tax, and accordingly, "the first imposition made by it received the sanction of the local Government on the 16th December, 1935, as per Notification No. 8700-2235-D-VIII. This notification came into force from January 1, 1936. On December 16, 1935, the local Government notified the rules for the assessment and collection of the tax which it had framed in exercise of the powers conferred on it by S. 79 (1), cls. (xv), (xix) and (xxx). Rule 2 of these Rules provided that the tax shall be payable by every person, firm or company holding a mining lease for coal within the limits of the Independent Mining Local Board's jurisdiction. Rule 3 provided that the tax shall be levied @ three pies per ton on coal, coal dust or coke manufactured at the mines, sold for export by rail or sold otherwise than for export by "rail within the territorial jurisdiction of the Independent Mining Local Board. In 1943, the words "coke manufactured at the mines" were deleted from Rule 3 and the tax was confined to coal and coal dust. The ratio thus prescribed was increased from time to time. On December 22, 1943, the rate was made 4 pies per ton; on July 29, 1946, it was made 7 pies per ton; and on July 19, 1947, it was made 9 pies. The Mining Board continued to recover the tax at the said rates until the Act was repealed in 1948 and in its place was enacted the Central Provinces and Berar Local Self-Government Act, 1948 (No. 38 of 1948). The respondent Sabha has now taken the place of the said Mining Board and has issued the notices against the several appellants, calling upon them to pay the coal tax for the different periods mentioned in the said notices.

(3.) The appellants in Civil Appeals Nos. 469 and 470 of 1962 are:The Amalgamated Coalfields Ltd., and The Pench Valley Coal Co. Ltd. They are companies incorporated under the Indian Companies Act, 1913, and both have Shaw Wallace and Co., Ltd., as their Managing Agents. On August 23, 1958, notices were served on the two appellants calling upon them to pay Rs. 21,898/64 nP. and Rs. 11,383/9 nP. respectively as tax assessed @ nine pies per ton from the 1st January , 1958 to the 30th June, 1958. This tax was claimed in respect of coal which included coal dispatched by the appellants outside the State of Madhya Pradesh. The validity of these notices was challenged by the appellants in this Court by their Writ Petition No. 31 of 1959. On February 10, 1961, the said writ petition was dismissed by this Court and it was held that the notices served on them were valid (Vide Amalgamated Coalfields Ltd. v. Janpada Sabha, Chhindwara, (1962) 1 SCR 1.