Bashir Musa Patel vs. The Assistant Director Of Mines And Geology
Facts
The petitioner, Bashir Musa Patel, was transporting granite (colour) slabs from Andhra Pradesh to Maharashtra in a vehicle covered by a tax invoice and e-way bill generated on the GST portal. The Assistant Director of Mines and Geology, Sangareddy, detained the goods and vehicle, alleging that seigniorage fee had not been paid as per Section 21 of the Mines and Minerals (Development and Regulation) Act, 1957. The petitioner contended that the goods were finished slabs, purchased from a registered dealer, and thus seigniorage fee was not applicable, citing a previous High Court judgment. The revenue argued that the goods were semi-finished/unfinished slabs requiring seigniorage fee payment.
Held
The Court directed the respondent authorities to verify the description of the goods in the tax invoice against the goods under transport. If the goods are found to be finished, cut granite slabs as per the invoice description, the authorities are to allow the further movement of the vehicle. However, if the authorities find that the goods are semi-finished/unfinished/uncut slabs requiring further processing, they are at liberty to take further action in accordance with the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, and the rules framed thereunder. The Court noted that the goods were supported by a tax invoice and waybill generated on the GST portal. The writ petition was disposed of subject to this direction.
Key Issues
1. Whether the detention of granite slabs, accompanied by a tax invoice and e-way bill generated on the GST portal, is valid when the revenue claims non-payment of seigniorage fee under Section 21 of the Mines and Minerals (Development and Regulation) Act, 1957, despite the petitioner asserting they are finished goods. Petitioner's arguments: The goods are finished granite slabs, covered by a valid tax invoice and e-way bill, evidencing purchase from a registered dealer. Therefore, the claim for seigniorage fee is invalid, relying on a previous High Court judgment in W.P.No.18030 of 2016. Revenue's arguments: The petitioner is transporting semi-finished/unfinished/uncut granite slabs, on which seigniorage fee is leviable under the Act.
Sections Cited
Section 21
AI-generated summary — verify with the full judgment below
[ 3166 ] HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Juri iction) FRIDAY, THE SEVENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR WRIT PETITION NO: 3488 OF 2025 Between: Bashir Musa Patel, S/o.Sri Musa Patel, Aged about 37 years, Purupatelwadi, Latur - 413607. State of lvlaharashtra. ...PETITIONER AND 1 The Assistant Director of Mines and Geology, Sangareddy, Sangareddy District, State of Telangana The Station House Officer, P.S., Chiragpally, Mogudampally Mandal, Sangareddy District.
The State of Telangana, Rep. by its Secretary to Government, lvlines and Geology Department, Telangana Secretariat, Hyderabad ...RESPONDENTS Petition under Article 226 ot lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Writ of Mandamus or any other appropriate Writ or Order or Direction declaring the action of the 1st Respondent in detaining the Granite (Colour) Slabs along with Vehicle No.KA56 8016 and keeping in the safe custody of the 2nd Respondent vide Lr. No.142SlVigilance/201 5, dated 06.01.2025 though the goods are covered by Ta
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.