Ajitgarh Audyogik Kshetra vs. State Of Raj And Ors

CW/494/2018HC RajasthanGSTCNR RJHC02041963201820 April 201811 pages
AI SummaryRemanded

Held

The Court held that the definition of 'dealer' under Rule 2(xvi) and Rule 60(4) of the Rajasthan Minor Mineral Concession Rules, 2017, are not opposed to Rule 54. The purpose of Rule 54 is to restrict illegal mining, transportation, and storage, and it extends to transportation and storage under certain conditions. The Court found that the circulars issued by the government were in consonance with Rule 92, which deals with transit passes, and that Rule 92 itself was not challenged. The Court held that the requirement of a transit permit would be as given under Rule 92, and the challenged circulars should be read in consonance with the Rules. While not inclined to interfere with Rule 60(4) or other orders, the Court disposed of the writ petition with directions to prevent unnecessary harassment. The Court permitted members to videograph inspections to provide evidence in case of harassment and directed the department to adequately address complaints of harassment with proper monitoring, especially considering the payment of GST as proof of mineral quantity.

Facts

The petitioner, Ajitgarh Audyogik Kshetra Udyami Sanstha, representing members engaged in mineral processing, filed a writ petition challenging Rule 2(xvi) defining 'dealer' and Rule 60(4) of the Rajasthan Minor Mineral Concession Rules, 2017. They also challenged orders dated 13.12.2017 and 16.01.2018 compelling members to obtain transit passes under Rule 92. The petitioner argued that their members, who only process minerals and do not excavate or transport them, are unduly harassed by mining department officials despite possessing valid rawannas and paying GST. They contended that the requirement of transit passes for processed minerals violates Rule 54, which they believe limits the need for such documentation to the point of excavation and check posts.

Key Issues

1. Whether Rule 2(xvi) defining 'dealer' and Rule 60(4) of the Rajasthan Minor Mineral Concession Rules, 2017, are unconstitutional and infringe upon the rights of the petitioner's members, particularly in relation to Rule 54 of the said Rules. The petitioner argued that the definition of 'dealer' is overly broad, encompassing those who merely process minerals, and that Rule 60(4), requiring transit passes even for processed minerals, is contrary to Rule 54, which they interpret as limiting documentation requirements to the point of mineral excavation and check post clearance. They also argued that the subsequent orders compelling transit passes are illegal. The respondents contended that the definition of 'dealer' is inclusive and covers all persons concerned with minerals, including processors, and that Rule 60(4) simply requires valid documentation for minerals in transit. They argued that the petitioner failed to demonstrate any constitutional infringement or that the provisions are beyond legislative competence. The respondents also asserted that Rule 54, which restricts illegal mining, transportation, and storage, is not violated by the challenged provisions, and that the orders are in consonance with Rule 92 concerning transit passes.

Sections Cited

Rule 2(xvi), Rule 60(4), Rule 92, Rule 54

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writs No. 494/2018 Ajitgarh Audyogik Kshetra Udyami Sanstha, Ajitgarh, District Sikar Through Authorized Signatory, Shri Dalip Singh Makhija Son Of Shri Amul Singh Makhija, Aged About 66 Years, Resident Of Dilraj Industry, H-1-107, Riico Industrial Area, Ajitgarh, District Sikar ----Petitioner Versus

1.

State Of Rajasthan Through Secretary In-Charge To The Government, Mines And Geology Department, Government Of Rajasthan, Secretariat, Jaipur.

2.

Director, Mines Geology, Rajasthan, Shastri Circle, Udaipur

3.

Additional Director (Headquarters), Mines Geology Department, Shastri Circle, Udaipur

4.

Superintending Mining Engineer, Jaipur ----Respondents For Petitioner(s) : Mr. A.K. Bajpai with Mr. Abhinav Bhandari For Respondent(s) : Mr. N.M. Lodha, Advocate General with Mr. Kunal Jaiman HON'BLE MR. JUSTICE M.N. BHANDARI HON'BLE MR. JUSTICE DINESH CHANDRA SOMANI Order 20/04/2018 By this writ petition, a challenge is made to Rule 2 (xvi) defining the world “dealer” under Rajasthan Minor Mineral Concession Rules, 2017 (in short the “Rules of 2017”). A further challenge is made to Rule 60 (4) of the Rules of 2017

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.

See plans and prices

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 Rajasthan High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.