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2025 DIGILAW 102 (RAJ)

State of Rajasthan v. State of Rajasthan

2025-01-15

MUNNURI LAXMAN, PUSHPENDRA SINGH BHATI

body2025
ORDER : 1. Dr. Vikas Balia, learned Senior Advocate appearing on behalf of the petitioner submits that the petitioner is a Royalty Collection and Excess Royalty Collection Contractor and is a part of the regulatory framework so as to ensure the excess royalty applicable to the particular mineral is collected and strict regulation of mineral transportation takes place. 2. Learned counsel for the petitioner has taken this Court to Rule 60 of the Rajasthan Minor Mineral Concession Rules, 2017 (hereinafter referred to as ‘the Rule of 2017’) and Rule 60 of Rajasthan Minor Mineral Concession (Amendment) Rules, 2025. 3. Rule 60 before amendment and Rule 60 after amendment is reproduced hereunder: Rule 60 of the Rajasthan Minor Mineral Concession Rules, 2017 “ 60. Establishment of check posts or barriers and inspection of minerals in transit and weighment.- (1)To prevent or check the evasion of royalty, the Mining Engineer or Assistant Mining Engineer concerned may direct to establish check post or barrier at such place and for such period as may be specified in the order. (2)The Director, Additional Director Mines, Superintending Mining Engineer, [Superintending Mining Engineer (vigilance)] Mining Engineer, Mining Engineer (vigilance), Assistant Mining Engineer, Assistant Mining Engineer (vigilance), Mines Foreman, Surveyor, Field Assistant, Nakedar or any other officer or official authorised by the State Government, Director or Additional Director Mines may check a vehicle carrying the mineral at any place and the owner or the person in charge of the vehicle shall furnish a valid rawanna or transit pass or royalty receipt duly authenticated by the department in the specified form and any other documents or particulars as demanded by such officer. (3)At every check post or barrier set up under sub- rule (1) or at any other place when so required by the officer incharge of the check post or officers or officials empowered in sub-rule (2), the owner or any person incharge of the vehicle shall stop the same, get the minerals contained therein weighed, shall pay weighing charges as fixed by the Government, from time to time and shall keep the vehicle stationed so long as may reasonably be necessary and allow officer in charge of the check post or such officer to examine the minerals in transit and also inspect all records relating to the minerals in possession of such owner or other person. The owner or person incharge of the vehicle shall, if so required by the officer in charge of the check post or any other officer, so empowered give his name and address as also that of the owner of the vehicle and the name and address of the consignor and the consignee. After checking the minerals and vehicle, the officer incharge of the check post or such officer shall put his signature on the rawanna, transit pass or royalty receipt so as to avoid any further checking at another check post. (4)Every owner or person incharge of a vehicle shall carry with him a valid rawanna, transit pass or royalty receipt duly authenticated by the department in respect of the mineral carried and shall produce the same before any officer incharge of a check post or other officer or official empowered under sub-rule (2). Explanation: - Mineral shall not cease to be mineral by reason of being subjected to any process like crushing, breaking, drying, pulverizing, calcinising or any other procedure intended to make the mineral fit or suitable for sale or consumption. (5)Where the officer incharge of the check post or any other officer or official empowered under sub- rule (2) above has a reason to believe that royalty is likely to be evaded in respect of any mineral liable to be assessed for royalty, such officer may require the owner or person incharge of the vehicle to pay an amount equal to ten times of royalty in lieu of cost of mineral, rent, royalty, compensation for environmental degradation and tax chargeable on the land occupied without lawful authority, etc. along with compounding fee as specified in sub-rule (3) of rule 54: Provided that where on weighment or by measurement at the check post, it is found that the entire quantity of mineral is not covered by the rawanna, the amount of royalty on such difference, shall be recovered by the officer incharge of the check-post. along with compounding fee as specified in sub-rule (3) of rule 54: Provided that where on weighment or by measurement at the check post, it is found that the entire quantity of mineral is not covered by the rawanna, the amount of royalty on such difference, shall be recovered by the officer incharge of the check-post. (6)The officer incharge of the check post or the officer or official empowered under sub-rule (2) shall have the power to seize and confiscate mineral alongwith vehicle which is not covered by a valid rawanna, transit pass or royalty receipt duly authenticated by the department, if the owner or person incharge of the vehicle refused to make payment as required under sub-rule (5), the seized vehicle alongwith mineral shall be handed over to the incharge of nearest Police Station, Police Chauki or departmental check post. The officer incharge of the check post or any officer or official empowered in this behalf shall give a receipt of such mineral alongwith vehicle seized by him to the person from whose possession or control it is seized. The officer incharge of the check post or any officer or official empowered under sub-rule (2) may direct the owner or person incharge of the vehicle to carry the vehicle alongwith mineral, so seized, to the nearest Police Station, Police Chauki or departmental check post. (7)Whenever an order of confiscation in respect of mineral alongwith vehicle seized under sub-rule (6) is made by an officer or official empowered by the Government in this behalf, such officer shall give an option to the owner or incharge of the vehicle to pay an amount as specified in sub-rule (5) in lieu of such confiscation. In case of failure of the owner or person incharge of the vehicle to avail such option, the confiscated material may be disposed off by the confiscating officer or any other officer authorised in this behalf by public auction or he may sell it directly at the rate prevalent in the adjacent area: Provided that no such mineral alongwith vehicle confiscated under sub-rule (6) shall be disposed off by the confiscating officer or any other officer authorized in this behalf before forty eight hours of such confiscation and till that time option shall remain with the owner or person incharge of the vehicle to carry the mineral after paying an amount as per sub-rule (5). (8)The Director may authorize any electronic weigh bridges established in the State by third parties for weighment of mineral, on such conditions as may be specified. (9)The mineral concession holder or registered weigh bridge owner shall allow authorities mentioned in sub-rule (4) of rule 54 at any time or times during the said term to examine and test every weighting machine and the weights used therewith in order to ascertain whether the same respectively are correct and in good repair and order and if any ambiguity is found, the same shall be rectified by the mineral concession holder or registered weigh bridge owner.” Rule 60 of the Rajasthan Minor Mineral Concession (Amendment) Rules, 2025 “ 60. Establishment of check posts or barriers and inspection of minerals in transit and weighment.- (1) To prevent or check the evasion of royalty, the Mining Engineer or Assistant Mining Engineer concerned may direct to establish check post or barrier at such place and for such period as may be specified in the order. (2) The Director, Additional Director Mines, Superintending Mining Engineer, [Superintending Mining Engineer (vigilance),] Mining Engineer, Mining Engineer (vigilance), Assistant Mining Engineer, Assistant Mining Engineer (vigilance), Mines Foreman, Surveyor, Field Assistant, Nakedar or any other officer or official authorised by the State Government, Director or Additional Director Mines may check a vehicle carrying the mineral at any place and the owner or the person in charge of the vehicle shall furnish a valid Irawanna or royalty receipt or transit pass or e-way bill, as the case may be.] in the specified form and any other documents or particulars as demanded by such officer. (3) At every check post or barrier set up under sub- rule (1) or at any other place when so required by the officer incharge of the check post or officers or officials empowered in sub-rule (2), the owner or any person incharge of the vehicle shall stop the same, get the minerals contained therein weighed, shall pay weighing charges as fixed by the Government, from time to time and shall keep the vehicle stationed so long as may reasonably be necessary and allow officer in charge of the check post or such officer to examine the minerals in transit and also inspect all records relating to the minerals in possession of such owner or other person. The owner or person incharge of the vehicle shall, if so required by the officer in charge of the check post or any other officer, so empowered give his name and address as also that of the owner of the vehicle and the name and address of the consignor and the consignee. After checking the minerals and vehicle, the officer incharge of the check post or such officer shall put his signature on the [rawanna or royalty receipt or transit pass or e-way bill, as the case may be,) so as to avoid any further checking at another check post. (4) Every owner or person incharge of a vehicle shall carry with him a valid [rawanna or royalty receipt or transit pass or e-way bill, as the case may be,] in respect of the mineral carried and shall produce the same before any officer incharge of a check post or other officer or official empowered under sub-rule (2). Explanation: Mineral shall not cease to be mineral by reason of being subjected to any process like crushing, breaking, drying, pulverizing, calcinising or any other procedure intended to make the mineral fit or suitable for sale or consumption. (5) Where the officer incharge of the check post or any other officer or official empowered under sub- rule (2) above has a reason to believe that royalty is likely to be evaded in respect of any mineral liable to be assessed for royalty, such officer may require the owner or person incharge of the vehicle to pay an amount equal to ten times of royalty in lieu of cost of mineral, rent, royalty, compensation for environmental degradation and tax chargeable on the land occupied without lawful authority, etc. along with compounding fee as specified in sub-rule (3) of rule 54: [Provided that no sized vehicle shall be released without registration with the department as per the provisions of sub-rule (2) of the rule 73A, if not registered.) (6) The officer incharge of the check post or the officer or official empowered under sub-rule (2) shall have the power to seize and confiscate mineral alongwith vehicle which is not covered by a valid Irawanna or royalty receipt or transit pass or e-way bill, as the case may be,] if the owner or person incharge of the vehicle refused to make payment as required under sub-rule (5), the seized vehicle alongwith mineral shall be handed over to the incharge of nearest Police Station, Police Chauki or departmental check post. The officer incharge of the check post or any officer or official empowered in this behalf shall give a receipt of such mineral alongwith vehicle seized by him to the person from whose possession or control it is seized. The officer incharge of the check post or any officer or official empowered under sub-rule (2) may direct the owner or person incharge of the vehicle to carry the vehicle alongwith mineral, so seized, to the nearest Police Station, Police Chauki or departmental check post. (7) Whenever an order of confiscation in respect of mineral alongwith vehicle seized under sub-rule (6) is made by an officer or official empowered by the Government in this behalf, such officer shall give an option to the owner or incharge of the vehicle to pay an amount as specified in sub-rule (5) in lieu of such confiscation. In case of failure of the owner or person incharge of the vehicle to avail such option, the confiscated material may be disposed off by the confiscating officer or any other officer authorised in this behalf by public auction or he may sell it directly at the rate prevalent in the adjacent area: Provided that no such mineral alongwith vehicle confiscated under sub-rule (6) shall be disposed off by the confiscating officer or any other officer authorized in this behalf before forty eight hours of such confiscation and till that time option shall remain with the owner or person incharge of the vehicle to carry the mineral after paying an amount as per sub-rule (5). (8) The Director may authorize any electronic weigh bridges established in the State by third parties for weighment of mineral, on such conditions as may be specified. (9) The mineral concession holder or registered weigh bridge owner shall allow authorities mentioned in sub- rule (4) of rule 54 at any time or times during the said term to examine and test every weighting machine and the weights used therewith in order to ascertain whether the same respectively are correct and in good repair and order and if any ambiguity is found, the same shall be rectified by the mineral concession holder or registered weigh bridge owner.” 4. Learned counsel for the petitioner further submits that the amendment in Rule 60 of the Rules of 2017 has created an impediment for the contractors like the petitioner in strict regulation of mineral transportation as determination of excess royalty has become virtually impossible. 5. Learned counsel for the petitioner refers to the provision in Rule 60 Sub-Rule 2 which requires the vehicle carrying the mineral at any place, the owner or the person to furnish a valid e-Rawanna or royalty receipt or transit pass or e-way bill, as the case may be. Learned counsel for the petitioner submits that this kind of liberty given to the vehicle owner/in-charge would create impediment in the collection of excess royalty because an alternate of e-way bill being not generated by the Mining Department if exercised by the transporter shall not contain details of any authentic royalty paid which would disable the royalty contractor to determine as to what kind of excess royalty is made out. 6. Mr. Mahaveer Bishnoi, learned Additional Advocate General, however, draws attention of this Court towards Rule 44 of the Rules of 2017. Relevant portion of Rule 44 of the Rules of 2017 reads as follows:- “ 44. Conditions of royalty collection contract and excess royalty collection contract.- Conditions of royalty collection contract and excess royalty collection contract shall be following;- …………….. Mr. Mahaveer Bishnoi, learned Additional Advocate General, however, draws attention of this Court towards Rule 44 of the Rules of 2017. Relevant portion of Rule 44 of the Rules of 2017 reads as follows:- “ 44. Conditions of royalty collection contract and excess royalty collection contract.- Conditions of royalty collection contract and excess royalty collection contract shall be following;- …………….. (3) The contractor shall collect the royalty as far as possible, close to lease or licence area and if not possible or practical then at any other place near the lease or licence area but within the jurisdiction of the contract area: Provided that such places shall only be established after prior approval in writing from the Mining Engineer or Assistant Mining Engineer concerned on an application with payment of rupees one thousand (non-refundable) for every place for which permission is required. The Mining Engineer or Assistant Mining Engineer may refuse to grant permission for reasons to be recorded in writing for any particular place and shall communicate to the contractor. (4) The contractor shall issue valid royalty receipts in Form -23 or Form-24 for the amount of royalty or excess royalty, permit fee or other charges collected for every dispatch of the said mineral and shall fill all the columns of the receipt. The contractor shall, give first copy of receipt to the in-charge of the vehicle, submit second copy of the receipt to the Mining Engineer or Assistant Mining Engineer concerned and shall retain third copy with him. (5) The excess royalty collection contractor shall collect excess royalty only from such vehicles which are having valid rawanna issued by the lessees. The contractor shall retain second copy of the rawanna with him and shall return first copy after stamping to vehicle owner. The contractor shall deposit second copy of rawanna with second copy of receipt issued by him with monthly statement in Form -26 to the Mining Engineer or Assistant Mining Engineer concerned. (6) The contractor shall not recover any royalty from the vehicles having royalty paid rawanna issued against yearly dead rent: Provided that after weighment, if any quantity of mineral is found in excess of weight mentioned in rawanna, contractor may recover the royalty of such excess weight. …………..” 7. (6) The contractor shall not recover any royalty from the vehicles having royalty paid rawanna issued against yearly dead rent: Provided that after weighment, if any quantity of mineral is found in excess of weight mentioned in rawanna, contractor may recover the royalty of such excess weight. …………..” 7. The thrust of the submission of the learned Additional Advocate General is that the role of the contractor is limited in checking the e-Rawanna which has complete details of royalty paid and if there is any royalty to be paid in excess to be charged by such contractor in accordance with Rule 44, learned Additional Advocate General clarifies that the royalty and excess royalty collection contractor is entitled to collect royalty and excess royalty only from the vehicles which are having valid e-Rawannas issued to the lessees and thus, his parameter of functioning shall basically be e-Rawanna which he can claim to check or which he can ask the transporter to submit for the purpose of passing the concerned carriers duly established in law. 8. This Court is of the firm opinion that once the royalty and excess royalty collection contractor is operating for the purpose of royalty and excess royalty then he should have the information of royalty so that it can be determined as to whether there is a component of excess royalty or not which is the basic role of such contractor. The statement of Mr. Mahaveer Bishnoi, learned Additional Advocate General takes care of such apprehension of the petitioner as Mr. Bishnoi has clarified that e-Rawanna is the parameter through which the petitioner could very well ascertain the royalty and excess royalty collection from the transporter in question. Mr. Bishnoi has stated that checking of such e-Rawanna before passing of the transporter is a right of the contractor to determine the royalty and excess royalty collection can accordingly be made. 9. Bishnoi has clarified that e-Rawanna is the parameter through which the petitioner could very well ascertain the royalty and excess royalty collection from the transporter in question. Mr. Bishnoi has stated that checking of such e-Rawanna before passing of the transporter is a right of the contractor to determine the royalty and excess royalty collection can accordingly be made. 9. In light of the limited submissions made today, the concept of royalty and excess royalty collection contractor in terms of amendment in Rule 60 of the Rules of 2017 can only be adjudicated after completion of the pleadings which is likely to take some time and meanwhile, in the interest of justice the following directions are passed:- i) The excess royalty collection contractor shall be entitled to collect excess applicable royalty from each vehicle which are having a valid e-Rawanna issued by the lessees and to the extent of royalty already paid, no collection can be made. ii) The excess royalty collection contractor thus, upon mandatorily seeking the e-Rawanna from the transporter shall be required to gauge as to whether any kind of excess royalty is payable or not in the contract area, strictly in accordance with Rule 44 of the Rules of 2017. iii) This aforesaid mechanism shall remain in operation till the next date. 10. List the matter on 17.02.2025.