ULTRATECH CEMENT LIMITED Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) The Petitioner is a company incorporated under the provisions of the Companies Act,1956 having its registered office at 'B' Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road, Andheri (East), Mumbai-400 093. The petitioner is part of Aditya Birla Group and is one of the largest Cement manufacturing Companies in India having its manufacturing unit located at Khor, Tehsil-Jawad, District Neemuch, Madhya Pradesh (458470). For the production of cement, the petitioner requires a continuous supply of specific raw minerals viz. limestone, gypsum and additives like red ochre, laterite, bauxite etc. Some of the minerals reserves are already allotted to the petitioner by the State Government but some minerals which are not available in the State of Madhya Pradesh like Aluminum Oxide, Iron Oxide which are essential components\ of cement manufacturing, hence, the petitioner is importing these minor mineral from the neighbouring State of Rajasthan. According to the petitioner, the minor minerals legally excavated in the State of Rajasthan after payment of royalty amount to the State Government and complying with all statutory requirements, the suppliers dispatch to the petitioner by trucks/carriers.

(2.) The State of Madhya Pradesh has issued a Notification No. F-19/3/2017-XII-1 dtd. 22/1/2021 in the exercise of the powers conferred under Sec. 15 and 15-A of the MMDR Act 1957 for amending Madhya Pradesh Mineral Rules, 1996 (hereinafter referred to as ' Rules, 1996') by substituting sub-rule (6) of Rule 29 whereby a levy in the name of 'Regulation Fee' at the rate Rs.25.00 per cubic meter has been imposed on minor minerals coming from other States into the State of Madhya Pradesh. In pursuant to the aforesaid notice, the District Mining Officer (in short' D.M.O.') has issued a press note dtd. 1/2/2021 directing business institutions and individuals to get themselves registered on the e-mineral portal to get transit pass. Respondent No.4 vide notice dtd. 22/2/2021 has demanded the Regulation Fee at the rate of Rs.25.00 per cubic meter on minor minerals coming from other States to the petitioner's unit located at Neemuch. The petitioner has submitted a detailed reply dtd. 26/2/2021 objecting to such demand. The petitioner has also submitted an exhaustive representation to the Principal Secretary-Mining, State of Madhya Pradesh alleging the imposition of the regulation fee is an arbitrary Act of Government. Being aggrieved by the aforesaid impugned amendment, the petitioner has filed the present writ petition seeking issuance of a writ of certiorari, order/direction for quahsment of Rule 29 (6) so far as it relates to levy of regulation fee for issuance of a transit pass for mineral brought from outside the State of Madhya Pradesh through Notification No.F-19/3/2017-XII-1 dtd. 22/1/2021. Consequently, the petitioner is also seeking quashment of the demand notice dtd. 22/2/2021.

(3.) The petitioner is assailing the aforesaid notification and demand inter alia on the ground that the State Government is not competent to impose regulation fees under Sec. 15 and 15-A of the MMDR Act, 1957 as under the aforesaid Sec. , the State Government can only regulate the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purposes connected therewith. The petitioner is attacking the validity of the aforesaid notification on the ground that even under Sec. 15 or 15-A of MMDR Act, 1957, the State Government has no authority to charge any fee on legally excavated minerals brought from the other States as has been held by the Apex Court in case of State of Gujrat v. Jayeshbhai Kanjibhai Kalathiya & Ors [(2019) 16 SCC 513]. According to the petitioner, the levy in the name of the regulation fee is a colourable exercise of power beyond the competence of the State Government. The respondents/State by way of Form IX issued under Rule 29(7) of ' the Rules, 1996' charges the transit fee under the M.P. Minerals (Prevention of Illegal Mining, Transportation and Storage Rules, 2006 read with M.P. Minor Mineral Rules, 2006 ( hereafter referred to as 'Rules, 2006') which applies to the movement of minerals within the State and not on the minerals coming outside of the State. Under Rules, 2006, the Government is already charging transit fees in the name of royalty on the minerals. Therefore, by amending Rule 29(6) of M.P. Minor Mineral Rules, 1996 no other fee can be levied in the name of the regulation fee. It is further submitted that there is no nexus between the regulation fee and the incidence of import of legally excavated minor minerals. The State Government has no legal competence to impose such a fee on minor minerals legally excavated in other States as there is no element of quid pro quo as a levy cannot be termed as regulatory in nature.