KMC CONSTRUCTIONS LTD. , HYD. Vs. PRL SECYMINES HYD

JUDGEMENT

(1.) The Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:

(2.) Brief facts of the case are that the petitioner is a company incorporated under the Companies Act, 1956, doing the business of laying of roads more particularly for the National Highway Authority of India. The petitioner company awarded the project of completion of four-lane Road between Kurnool to Kadapah (NH-18) by way of contract by the NHAI authorities. To complete the project, the petitioner company required Gravel, as such it has applied for issuance of temporary permits to the office of 4th respondent, after duly obtaining No Objection Certificate from the office of Tahsildar, Khajipeta Mandal, vide reference No.A.303/10, dtd. 13/11/2010 for doing quarrying operations in an extent of 1205.62 Acres in Survey No.569 of Pullur Village, Khajipet Mandal, Kadapa district. The petitioner company obtained 13,500Cbm quantity temporary permits after duly paying challans. Thereafter, the petitioner company vide Challan dtd. 13/4/2011 paid an amount of Rs.2,64,000.00 into the Government Treasury for issue of temporary permits to the tune of 12,000 Cbm. But the 4th respondent refused to issue temporary permits in favour of the petitioner company for lifting of the Mineral in an extent of 12,000 Cbm of Gravel. While things stood thus, the office of the 4th respondent issued Notice No.2560/TP/2008, dtd. 13/1/2012 stating that the 4th respondent have done joint inspections along with other officials on 9/11/2011 and 31/12/2011 and found that the petitioner company has excavated 25,875 Cbm of Gravel by measuring the pits in Survey No.569 of Pullur Village, Khajipeta Mandal, YSR Kadapa district. The 4th respondent further stated in the notice that the petitioner has obtained permits by paying the advance amount of Rs.2,97,000.00 and obtained permits to the tune of 13,500 Cbm only and there is a shortfall of 12,375 Cbm after measuring the pits. Immediately, the petitioner company vide letter dtd. 24/2/2012 informed the 4th respondent that they have no knowledge with regard to the alleged inspections and further denied that they have not excavated any quantity of mineral illegally. Thereafter, the 4th respondent issued demand notice dtd. 7/2/2012 for payment of Rs.29,94,750.00 towards normal Seigniorage fee plus ten times penalty. Challenging the same, the petitioner filed Statutory Appeal/Revision Application dtd. 26/3/2012 to the office of the 1st respondent under Rule 35/35-A of A.P.Minor Mineral Concession Rules, 1966. The 1st respondent after hearing the case, disposed the said Revision Application directing the petitioner to pay the Normal Seigniorage Fee along with three times penalty raised in demand Notice No.2560/TP/2008, dtd. 7/2/2012 of the 4th respondent (if not paid earlier) within thirty days, as the grounds of revision and the arguments of the petitioner are not satisfactory. Aggrieved by the same, the present writ petition has been filed.

(3.) The 4th respondent filed counter affidavit denying all the allegations made in the writ petition. It is further stated in the counter affidavit that, on 9/11/2011, the then Assistant Director of Mines and Geology, Kadapa along with the then staff i.e., Assistant Geologist, Royalty Inspector and Surveyor of office of 4th respondent; AMO; Office of ZJDM & G, Kadapa; Office of ADM&G, Yerraguntla and the Tahsildar, Khajipeta Mandal and their staff i.e., Mandal Revenue Inspector, Mandal Surveyor and V.R.O. have conducted the Joint Inspection over the temporary permit obtained area by petitioner company in Survey No.569 of Pullur Village, Khajipeta Mandal, YSR Kadapa district. Further, on 31/12/2011, the then Assistant Director of Mines and Geology, Kadapa along with Surveyor of office of 4th respondent has inspected again the above said area and assessed the quantity of 25,875Cbm of Gravel which was excavated by petitioner company from the subject area. As per the office records of 4th respondent, the petitioner obtained temporary permits for 13,500 Cbm of Gravel by paying requisite amount of Seigniorage Fee of Rs.2,97,000.00 and the petitioner company has excavated 12,375 Cbm quantity without obtaining permission from the 4th respondent. Hence, the 4th respondent issued show cause notice to petitioner company dtd. 13/1/2012, with a request to submit the compliance within a week from the date of receipt of letter. But the petitioner company neither submitted any documentary proof nor submitted any compliance report in the matter within time. Hence, the 4th respondent issued Demand Notice No.2560/TP/2008, dtd. 7/2/2012 demanding the petitioner to pay Rs.29,94,750.00 within 15 days from the date of receipt of the notice. The Government vide Memo No.4917/M.II(1)/2012-5, dtd. 21/2/2013 directed the petitioner company to pay normal seigniorage fee plus three times penalty.