SIVA SAI CONSTRUCTIONS Vs. STATE OF A.P.

JUDGEMENT

(1.) The Writ Petition No.20857 of 2024 is filed under Article 226 of the Constitution of India, seeking the following relief:

(2.) Brief facts of the case are that the petitioner was granted a quarry lease for excavation of Road Metal and Building Stone in the land in an extent of Ac.3.843 Hectare in Survey Nos.908/1, 908/2 & 908/4, 913/1, 913/2 & 449 of Kutagulla Village, Kadiri Mandal, Ananthapuramu district (for short "quarry lease") for a period of ten years by the 3rd respondent vide proceedings No.637,QL-ATP/2020, dtd. 20/1/2021. Thereafter, a quarry lease deed was entered with effect from 17/4/2021 to 16/4/2031 on payment of yearly dead rent of Rs.65,000.00 per hectare and a seigniorage fee @ Rs.90.00 per Cubic meter (for short "Cum") or Rs.60.00 per Metric Ton for Road Metal and Building Stone vide proceedings No.1681/QL/RM/2019, dtd. 17/4/2021. While so, the 1st respondent promulgated vide G.O.Ms.No.94, Irrigation and CAD (PW- COD) Department, dtd. 1/7/2003, wherein it has given modalities for issuance of tender and registration of contractors in connection with deduction of Seigniorage fee and other charges. Further, an amendment was carried out in Mines and Mineral (Development and Regulation) Act, 1957 (for short "the Act") in the year 2015, wherein District Mineral Foundations were directed to be set up. Further, Andhra Pradesh District Mineral Foundation Rules, 2016 (for short "the Rules") were issued vide G.O.Ms.No.36, Industries and Commerce (M-III) Department, dtd. 14/3/2016. Similarly, G.O.Ms.No.42, Industries and Commerce, dtd. 7/6/2021 ordered for levy of consideration in-addition to Seigniorage fee, DMF and MERIT on all minor mineral other than Granite. Therefore, the petitioner is liable to pay Seigniorage fee, DMF, MERIT, Consideration Amount and Income Tax for the mineral excavated by it. Whereas, the Government of Andhra Pradesh vide G.O.Ms.No.63, Industries, Commerce and Mines Department, dtd. 2/8/2021 amended the provisions of Andhra Pradesh Minor Mineral Concession Rules, 1966. Transit forms from 3/3/2023 were issued by M/s.Amigos Minerals and the requisite amounts would be collected by it like Seigniorage fee, DMF and MERIT, Consideration amount and IT. While things stood thus, on 30/7/2024, the Royalty Inspector and the Surveyor of the 5th respondent office inspected the quarry lease held by the petitioner. As per the survey report, dtd. 30/7/2024 of the Mines and Surveyor, a total of 2,57,068.168 Cum of mineral was excavated and nearly 402.095 Cbm was the variation of Recorded Mineral Quantity within the leased area another 600 Cbm of mineral was excavated outside the leased area. Basing on the said survey report, the 5th respondent issued a Show-Cause Notice vide No.1681/QL/RM/2019, dtd. 8/8/2024 directing the petitioner to submit its explanation and documentary evidence for the total of 2,57,068.168 Cum of mineral was excavated within a period of 15 days from the date of receipt of notice and the same was served on the petitioner through registered post on 20/8/2024. The petitioner has submitted its explanation dtd. 2/9/2024. The 5th respondent issued Demand Notice vide No.1681/QL/RM/2019, dtd. 13/9/2024 stating that as per their records, transit forms have only been issued for 62,799.98 Cum out of 2,57,068.168 Cum and hence for remaining balance directed to pay seigniorage fee of Rs.1,74,84,137.00, penalty of Rs.8,74,20,685.00, DMF of Rs.52,45,241.00, MERIT of Rs.3,49,683.00, Consideration Amount of Rs.1,74,84,137.00 totaling to Rs.12,79,83,883.00 apart from excavation from the leased area. Immediately, the 5th respondent issued the Seizure Notice on 16/9/2024 seizing the Stone Crusher. Aggrieved by the same, the present writ petition has been filed.

(3.) This Court, vide order, dtd. 24/9/2024, after hearing the both sides, granted the interim order in I.A.No.1 of 2024 as follows: