HINDALCO INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has sought for quashing of the entire certificate proceedings being Certificate Case no. 17 GR/2006-07 pending before respondent no. 4, the Certificate Officer (Mines), South Chhotanagpur Anchal, Doranda, Ranchi after calling for the records of the same from the concerned office of respondent no. 4. The petitioner has also challenged the order dated 18th December, 2006 being order no. 579/DDM passed by the Certificate Officer (Mines) in the said case whereby he has kept the certificate case pending while directing the petitioner to deposit 50% of the certificate amount with respondent no. 2 and further directed the petitioner to furnish a Bank Guarantee for the rest 50% of the certificate amount.

(2.) The petitioner has also sought for a declaration that in view of the Mineral Concession Rules, 1960 and the Mines and Minerals (Development & Regulation) Act, 1957, (hereinafter referred as MMDR Act, 1957), he is not liable to pay royalty on vanadium sludge which comes out as impurities while processing Alumina at their plaint at Renukoot, Uttar Pradesh. Consequently, the petitioner has also sought for a direction holding the entire certificate proceeding as illegal and without jurisdiction.

(3.) The brief facts of the case as stated on behalf of the petitioner are being stated hereunder: The petitioner, M/s. Hindalco Industries Ltd. holds mining leases in the district of Gumla, Lohardaga and Latehar in the State of Jharkhand for mining Bauxite. Bauxite Ore is found 2 to 6 meters below the thick soil and after removing the overburden it is mined in run of mine condition (ROM) and is recovered. According to the petitioner, he pays full royalty on the mined Bauxite to the State of Jharkhand at the rate prescribed under M.M.D.R., Act, 1957. The entire Bauxite Ore in ROM condition after payment of appropriate royalty is transported by the petitioner to its processing plant at Renukoot Sonebhadra (U.P.). As per Indian Bureau Mines, the major chemical constituent of mineral Bauxite is AL203 (Alumina) and other chemical constituents are compounds of silicon, iron and titanium. There are other small quantities of chemical compounds called contaminants which includes V205 (vanadium pentoxide), amongst many other contaminants of which the presence of vanadium pentoxide is less than 1%.