AMALGAMATED COALFIELDS LIMITED COMPANY Vs. JANAPADA PANCHAYAT CHHINDWARA

JUDGEMENT

(1.) This writ petition as well as seven other writ petitions, viz.,(l) Miscellaneous Petition No. 351 of 1970 (The Kanhan Valley Coal Co. Pvt. Ltd & another v. The Janapada Panchayat, Chhindwara & others); (2) Miscellaneous Petition No. 352 of 1970 (The Central Provinces Syndicate Pvt. Ltd. & another v. The Janapada Panchayat, Chhindwara & others); (3) Miscellaneous Petition No. 353 of 1970 (The Pencil Valley Coal Co. Ltd & another v. The Janapada Panchayat, Chhindwara & others) ; (4) Miscellaneous Petition No. 491 of 1970 (Oriental Coal Co. Ltd v. The Janapada Panchayat, Chhindwara &. others); (5) Miscellaneous Petition No. 492 of 1970 (J. A. Trivedi Brothers v. The Janapada Panchayat, Chhindwara & others); (6) Miscellaneous Petition No. 493 of 1970 (TV. R. Oza & Co. Pvt. Ltd. v. The Janapada Panchayat, Chhindwara & others) and (7) Miscellaneous Petition No. 500 of 1970 (Newton Chikli Collieries Ltd v. The Janapada Panchayat, Chhindwara & others) raise common questions and, therefore, they are disposed of by this common Order. In accordance with Rules 5 and 6, read with Note below Rule 4 of the Rules for Assessment and Collection of Coal Cess imposed under section 51 of the Local Self-Government Act, 1920, read with section 192 proviso (b) and (c) of the Local Government Act, 1948, and further read with the provisions contained in Madhya Pradesh Koyala Upkar (Manyatakaran) Adhiniyam, 1964, the Sub Divisional Officer-cum-Officer-in-charge, Janapada Sabha, by his order, dated 29-6-1970, rejected the contentions raised on behalf of the petitioners who are mining concessionaires, engaged in the business of getting and winning coal from their mines, in the Chhindwara district which they sold for export by rail or sold otherwise than for export by rail within the jurisdiction of the now defunct Independent Mining Local Board, and made assessment of a tax at 3 pies per tonne on coal despatched by them for the years between 1964 and 1968, as per notice of demand issued by him in accordance with the provisional assessment made by him on the basis of the final royalty figures of coal despatches from the Collectorate, Chhindwara and on the basis of the returns submitted by them.

(2.) The petitioners filed their objections to the aforesaid assessments under Rule 8 of the Rules for the Assessment and Collection of Coal Cess and they were given a hearing on their objections. Before the Sub-Divisional Officer the only objections raised on behalf of the petitioners were (i) that the coal cess was, in reality, a sales-tax, and inasmuch as the sales effected by the petitioners were outside sales within the meaning of Article 286 (1) fa), read with the Explanation thereto, the imposition of a tax by the Janapada Sabha at 3 pies per tonne on coal manufactured at the mines, sold for export by rail or sold otherwise then for export by rail, i. e., exported outside the State of Madhya Pradesh, was ultra vires, null and void, and (ii) the notices of demand in question were barred by limitation.

(3.) The Sub-Divisional Officer by his impugned order, dated 29 6-1970, rejected these two contentions. With respect to the first objection, following the decision of the High Court in M/s Newton Chikli Collieries v. Janapada Sabha, Chhindwara(Misc. Petition No. 263 of 1957, decided on 6-8-1958.), the Sub Divisional Officer rightly held that the coal cess was not a sales-tax and, therefore, Article 286 of the Constitution is not attracted. With respect to the second, he held that the petitioners were unable to point out as to how, and under what provision, the assessments made against the petitioners and the notices of demand served on them for the years in question, were barred by limitation.