OIL INDIA LIMITED Vs. STATE OF ASSAM

JUDGEMENT

(1.) THE challenge projected being identical both the writ petitions were heard together and are being disposed of by this common judgment and order.

(2.) BOTH the writ petitioners are public sector undertakings engaged, inter alia, in the exploration of hydrocarbons from which the petitioners extract crude oil and natural gas. Crude oil and natural gas bearing land having been brought within the definition of "specified land" by the Assam Taxation (on Specified Lands) (Amendment) Act, 2004 and such land having been made exigible to payment of tax under the provisions of the principal Act, i. e. , the Assam Taxation (on Specified Lands) Act, 1990, it is the validity of the aforesaid amendment Act that is the subject matter of challenge in both the writ applications under consideration.

(3.) THE Assam Taxation (on Specified Lands) Act, 1990 was enacted by the State Legislature of Assam with a view to providing additional revenue to the State by imposing a tax on certain categories of land. The Act, as originally enacted, defines specified lands to mean any land used or intended to be used for growing tea and for purposes ancillary thereto as well as any land held for the purposes of obtaining or extracting coal. Section 3, which is the charging section, empowers and authorizes the levy of a tax in respect of specified lands calculated on the annual productivity of such land. Section 4 of the Act lays down the principles for determination of annual productivity of the land whereas Section 5 provides for the rate of tax. Under Section 6 it is the owner of the specified land, as defined, who has been made liable to pay the tax. By Assam Ordinance II of 1994 and subsequently by Assam Act XXIV of 1994 amendments were carried out which had the effect of excluding coal bearing land from the purview of the provisions of the Act. Thereafter, by the impugned Amendment Act of 2004 elaborate amendments were carried out so as to include coal, once again, and crude oil and natural gas bearing land within the meaning of the definition of specified land so as to make such coal, crude oil and natural gas bearing land exigible to tax under the Act by determination of the annual productivity as laid down in Section 4 and at the rate specified in Section 5. It is the validity of the aforesaid amendment insofar as crude oil and natural gas bearing land is concerned, that is the subject matter of the present challenge, such challenge, primarily, being on the ground that the amendment Act of 2004 is beyond the power of the State legislature, as the Act, in pith and substances, imposes a tax on crude oil and natural gas.