Tahsildar Failed to Act Despite Receiving VAT-GST Clarification: Orissa HC Directs to Transfer Records on Sand Quarry Tender to Mining Officer [Read Order]
The High Court noted that the Sand Quarry Tender remained stalled for nearly three years but directed immediate transmission of records to the Mining Officer within Two weeks for Prompt decision-making.
In a recent case, the Orissa High Court directed the immediate transfer of all records to the Mining Officer within two weeks, as the Tahsildar did not act on the Sand Quarry Tender despite getting clear VAT/GST clarifications, noting that such delay harms government revenue and slows the use of public resources.
The court emphasized that authorities cannot remain idle after receiving necessary clarifications, as such delays frustrate the public tender process.
The Petitioner, Jitendra Kumar Agrawal, filed the Petition seeking clarification regarding the Income Tax Return (ITR) filed for the year 2021-22, as a Hindu Undivided Family (HUF), treating it as an Individual.
The Tender Process was initiated for Three Sand Quarries on 1st August, 2022 by the Tahasildar, Jharbandh. During the process, the Tahasildar sought clarification regarding the acceptance of the Petitioner's Income Tax Return (ITR) for the year 2021-22, filed as a Hindu Undivided Family (HUF), treating it as an Individual.
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A Letter was sent to the Additional District Magistrate (ADM) for doing the needful on 2nd November, 2023, regarding the submission of VAT Clearance Certificate. The ADM, Bargarh, responded on December 12, 2023, stating that there was no impediment to accept the individual ITR or HUF ITR under the Odisha Minor Minerals Concession Rules, 2016.
The ADM further ensured that there should be GST registration for Bidders and furnish a certificate/ Letter from the GST jurisdictional officer for those who hadn't submitted the dues pending on account of GST.
“The competent authority should ensure that the GST registration of the bidders are made part of bid document during the annual auction/ renewal of sand/ stone mining quarries and the bidders who have not submitted the same may be asked to furnish a certificate/letter from the concerned GST jurisdictional officer that there is no dues pending on account of GST.”
Despite receiving the clarification, the Tahasildar, Jharbandh remained stubborn and did not take any further step in respect of the said tender process. It was perceived that Silence was manifested on the part of the Petitioner and on furtherance of that, a letter was issued on 25th June, 2025.
The Orissa High Court composed of Chief Justice Harish Tandon and Judge M.S Raman, heard and reviewed the matter filed by the Petitioner.
The High Court, after considering and reviewing the matter, perceived it as a Prolonged Delay. The court also stated that such an apathetic approach frustrates the purpose of the tender, causing financial loss to the government and depriving it of natural resource usufructs.
Consequently, the High Court directed the Tahasildar, Jharbandh to transmit all the records/documents to the Mining Officer within Two weeks, including the Clarification Letter, this directive was issued in light of the Odisha Minor Minerals Concession (Second Amendment) Rules, 2022.
“The entire exercise shall be completed within two weeks from the date of communication of this order. We expect that after receipt of the files, the Mining Officer shall take immediate step and prompt decision as permissible in law.”
Thus, the petition was disposed of.
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