SWARNA PICHAIAH AND OTHERS Vs. STATE OF ANDHRA PRADESH, REPRESENTED BY ITS SECRETARY, INDUSTRIES AND COMMERCE DEPT., AND OTHERS

JUDGEMENT

(1.) In this batch of writ petitions, the constitutional validity of Sec. 88 of the Andhra Pradesh (Andhra Area) District Boards Act, 1920 (hereinafter referred to as the Act) as well as Sec. 3 of the Andhra Pradesh (Mineral Rights) Tax Act, 1975 (for short the M.R.T. Act) is questioned.

(2.) The petitioners herein are the holders of mining leases granted under the provisions of the Mines & Minerals (Regulation & Development) Act, 1957 and the rules made thereunder. Each one of them had been granted lease in respect of the area mentioned in the respective writ petitions. While they were carrying on mining operations, the State Government imposed on them cess on royalty in purported exercise of power under Sections 78, 79 and 88 of the Act and tax under Sec. 3 of the M. R. T. Act. The levy so imposed is challenged in these writ petitions on the ground that Sections 78, 79 and 88 of the Act and Sec. 3 of the M R. T. Act are ultra vires the powers of the State legislature. Those relevant sections to the extent relevant read as follows :

(3.) Chapter VI of part-111 of the Act deals with taxation. Sec. 74-B authorises the levy of land cess being a tax on the annual rental value of tax. Sec. 78 provides that the land cess shall be 12 paise in the rupee of the annual rent value. The method and manner of fixing the annual, rent value is prescribed in Sec. 79. In the case of land held on ryotwari tenure or lease or licence, the annual rent value is fixed on the basis of the assessment, lease amount, royalty or other sum payable to the Government together with any water-rate which may be payable for the irrigation of the lands. Every landholder and sub-landholder is liable to pay the land cess in respect of the lands held by him under Sec. 88 of the Act.