RADBIKARANI SINGH Vs. PY DIRECTOR OF MINES

JUDGEMENT

(1.) The question at issue in this writ petition is whether 'Royalty' is 'Land Revenue' within the meaning of Section 135 (1) of the Hyderabad District Boards Act (No. 1 of 1956) for the purpose of levy of cess.

(2.) An extent of Acs. 25-20 guntas of land covered by S. No. 166 in the village of Bhorampet, Medchal Taluk, Hyderabad District was leased out to the petitioner herein for a period of 20 years on 12-8-1955 for the purpose of extracting Quartz. The lease expired on 17-7-1976. In accordance with the requirement of Rule 10 of the Mineral Concession Rules the petitioner, on expirty of the lease period, issued notice to the concerned authority. By an order dt. 14-8-1978 the petitioner was called upon by the Assistant Director of Mines and Geology, Hyderabad to pay [Cess at the rate of 25% on the Mineral Revenue (Royalty). The petitioner submitted a reply on 24-8-1979 contending that payment of cess should not be linked with royalty. Rejecting that contention the Deputy Director of Mines and Geology issued proceedings in Letter No. 919/M/77, dt. 26-2-1980 calling upon the petitioner to remit Rs. 8,665-86 ps. of which the amount relatable to payment of cess was apportioned at Rs. 8,445-64 ps. The Petitioner as seeking judicial review of the aforesaid order by asking for a Writ of Certiorari to quash the same.

(3.) It is the contention of Sri S. Krishna, the learned counsel for the petitioner that under Section 135 of the Hyderabad District Boards Act, the respondent is not empowered to levy cess with reference to royalty. Countering this contention it is argued by Sri. N.V. Suryanarayana Murthy, the learned Government Pleader that cess is payable on revenue and whatever amount the holder of a land is liable to pay to the Government for the user of the land is land revenue and therefore the collection of cess with reference to royalty amount is not illegal. And that is the stand taken by the respondents in the counter. The 1st respondent is the Deputy Director of Mines and Geology, Government of India and the 2nd respondent is the Collector, Rangareddy District.