GOVRANGA LAL CHATTERJEE Vs. STATE OF BIHAR

JUDGEMENT

(1.) The Constitutional Validity of the Cess and other Taxes on Minerals (Validation) Act, 1992 has been challenged by the petitioner in this application. Further prayer has been made to direct the respondents for not deducting royalty from the bills of the petitioner and also to refund the amount which has already been deducted by the respondents from its bill.

(2.) The petitioner-firm being a registered one, engaged, inter alia, in the business of undertaking construction of various civil engineering works including the rod construction of bridges etc. In response to tender petitioner was entrusted with the works of construction of rural roads and bridges in the District of Singhbhum West. Bills were submitted time to time and same were paid after making deduction on account of royalty. Such deduction of royalty was challenged in various High Courts including that of Patna High Court and ultimately the matter was set at rest by the decision of the Supreme Court in the case of India Cements Limited v. State of Tamil Nadu reported in 1990 SC 85, where it is held that such levy was out-side the legislative competence of the State Legislature. Following the aforesaid decision, the Apex Court in the case of Orissa Cement Limited v. State of Orissa declared identical levies imposed by the State of Orissa, Bihar and Madhya Pradesh as incompetent and void. However, the Bench directed that the said decision shall be operative prospectively with effect from the date of the said judgment i.e. 4th April, 1991 in the case of State of Bihar.

(3.) Grievance of the petitioner is that though on the teeth of this direction of the Supreme Court, the respondents could not have deucted royalty but till date they have deducted the same from the bills of the petitioner even without refunding the amount of royalty already recovered by them.