Case Note & Summary
The petitioners, M/s. Utkal Highways and others, were partnership firms engaged in excavation of ordinary earth. They challenged the notification dated 03.02.2000 issued by the Union of India under Section 3(e) of the Mines and Minerals (Development and Regulation) Act, 1957, which levied royalty on ordinary earth. The petitioners contended that ordinary earth is not a 'mineral' under the Act and the notification was ultra vires. The respondents, including the Union of India and the Collector, Amravati, argued in support of the notification. The court analyzed the definition of 'mineral' under Section 3(e) and found that ordinary earth is not specifically declared as a mineral by the Central Government. Consequently, the notification was held to be beyond the powers conferred by the Act and was struck down as unconstitutional. The court declared that the deduction of royalty by respondents 3 and 4 was without authority of law and restrained them from withholding amounts on account of royalty on ordinary earth. The petitions were allowed with no order as to costs.
Headnote
A) Mines and Minerals - Definition of Mineral - Section 3(e) of Mines and Minerals (Development and Regulation) Act, 1957 - Ordinary Earth - The court considered whether ordinary earth falls within the definition of 'mineral' under Section 3(e) of the Act. Held that ordinary earth is not a mineral as it is not specifically declared as such by the Central Government, and the notification dated 03.02.2000 purporting to include it is ultra vires the Act. (Paras 1-3) B) Constitutional Law - Ultra Vires Notification - Section 3(e) of Mines and Minerals (Development and Regulation) Act, 1957 - The court struck down the notification dated 03.02.2000 as being beyond the power of the Central Government under Section 3(e), as it sought to declare ordinary earth as a mineral without proper authority. Held that the notification is unconstitutional and violative of the Act. (Paras 1-3)
Issue of Consideration
Whether ordinary earth excavated by the petitioners is a 'mineral' under Section 3(e) of the Mines and Minerals (Development and Regulation) Act, 1957, and whether the notification dated 03.02.2000 levying royalty on ordinary earth is ultra vires the Act.
Final Decision
The court allowed the petitions, struck down the notification dated 03.02.2000 as ultra vires and unconstitutional, declared that deduction of royalty on ordinary earth was without authority of law, and restrained respondents from withholding amounts on account of such royalty. No order as to costs.
Law Points
- Interpretation of 'mineral' under Section 3(e) of Mines and Minerals (Development and Regulation) Act
- 1957
- Ultra vires notification
- Royalty on ordinary earth
