SHAMBHU PRASAD Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) In all these writ petitions, the power of the State Government to levy and collect cess on dead rent is questioned The petitioners have been granted mining leases for extraction of minor minerals. Pursuant to the grant of lease, a lease deed was executed by the State Government in favour of each of the petitioners. The order granting mining lease in favour of each of the petitioners provides that seigniorage fee, dead rent, land assessment and cesses should be collected. For example, in respect of lime stone, the rates are as follows: <FRM>JUDGEMENT_511_ALD2_1995Html1.htm</FRM> The Dead rent or Seigniorage fee, whichever is higher should be paid The same terms have been incorporated in the lease deed executed in favour of each petitioner.

(2.) In India Cement Ltd. v. State of Tamil Nadu (1) AIR 1990 SC 85, a Constitution Bench of the Supreme Court considered the question whether it was within the competence of the State Legislature to make law authorising the levy of cess on Royalty. The matter arose under the Tamil Nadu Panchayats Act, 1958 (Act 35 of 1958). Section 115 of that Act enjoined that there shall be levied a local cess at the rate of 45 paise on every rupee of land revenue payable to the Government in respect of any land for every fasli. An Explanation was added to that Section by the Tamil Nadu Panchayats (Amendment and Miscellaneous Provisions) Act, 1964, which reads as follows:

(3.) In his concurring but separate Judgment, His Lordship Justice Oza observed: