The Patna High Court directed the State Taxation Department to be vigilant so that materials are not removed without accepting royalty and tax due to any person or company.
The lease period of the petitioner expired on 30.12.2020 and then on 02.06.2021 an inspection was done by Assistant Director, to ascertain the quantities of the broken material existing at the site till the last date of expiry of the lease period in which it was found that 13, 45,400.00 CFT of broken stones were present on the Mining Site and vide Memo issued by Assistant Director, the petitioner company was allocated a period for removal of broken stone chips and machines and materials.
The petitioner company was allowed to remove all machinery, infrastructure within six months but did not allow to remove broken chips boulder. Thereafter even before the completion of the period granted, directed the Collector, Nawada regarding forfeiture of property left on the mining site for more than six months after determination of lease.
Vikash Kumar, counsel who appeared on behalf of the State, submitted that considering the fact that agreement is no more in effect and as such there is every possibility that the petitioner company may not make payment of the GST, therefore some protection may be given to the State to the effect that the petitioner company may pay the tax pursuant to the contract given to the petitioner company for construction of road.
The senior counsel submitted that since the petitioner has paid the royalty which is in the nature of tax, petitioner company is not required to pay any amount of GST. The petitioner company has discharged the tax/royalty liability by making payment of entire royalty and there is no question to not allow the petitioner company to lift the broken stone chips in absence of any reason by condoning the delay which has been caused due to COVID-19.
A Single Bench of Justice Purnendu Singh observed that “In any case, the authority must not delay to allow the petitioner company to lift the broken stone chips from the site, beyond the period of two months. It is made clear that the petitioner ensures to make payment of royalty and GST, if any due is there, within the aforesaid period of two months.”
“This Court further observes that the authorities of the Mines and Geology Department as well as the State Taxation Department to be more vigilant in future so that materials be not removed without accepting the requisite royalty and tax due to any person or any company in future” the Court concluded.
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