STATE OF BIHAR Vs. INDIAN ALUMINIUM COMPANY

JUDGEMENT

(1.) THE common question which arises for consideration in these appeals on special leave being granted, is about the validity of the Bihar Forest Restoration and Improvement of Degraded Forest Land Taxation Act, 1992 (hereinafter referred to as the 'said Act'). THE Patna High Court, on writ petitions having been filed by the respondents in these appeals, having upheld the challenge to the validity of the said Act, the State of Bihar has filed these appeals challenging the correctness of the High Court's decision.

(2.) THE facts which are essential for the decision of these appeals are similar and lie in a very narrow compass, therefore, it is not necessary to refer to the facts of each case. It will be sufficient to refer to the facts in the appeal pertaining to Indian Aluminium Company Ltd. THE said company, like all the respondents, had been granted by the State of Bihar leases for different areas under the provisions of Mines and Minerals Regulation Act, 1957. THEse leases pertained to various tracts of land situated in different villages but all the said leases related to lands in the forest areas. THEse leases had been granted long prior to the promulgation of the ordinance which led to the passing of the aforesaid Act. THE respondents, on the basis of the leases which had been granted to them, worked on the said lands and extracted the minerals for which the leases had been granted.

(3.) ON behalf of the State Government reliance was placed on the provisions of Entry 49, List II in support of its contention that the State Legislature had the legislative competence to enact this law. Shortly put the case of the appellants herein was that what was now sought to be levied by the impugned act was tax on land which was covered by Entry 49, List II and the tax was not on or in relation to any mining activity.