D.Rajasubramanian vs. The Commissioner Of Geology And Mining

WP(MD)/18521/2019HC MadrasGSTCNR HCMD01078033201923 March 2021Bench: HONOURABLE MR JUSTICE G.R.SWAMINATHAN3 pages
AI SummaryDismissed

Facts

The petitioner, D. Rajasubramanian, operates a stone crusher unit, transforming rough stones into crushed materials. He had obtained necessary approvals for his business. The respondents, authorities under the Department of Geology and Mining, insisted that the petitioner register as a dealer under the Tamil Nadu Prevention of Illegal Mining, Transportation and Storage of Minor and Mineral Dealers Rules, 2011. The petitioner filed a writ petition seeking a direction not to insist on this registration and not to interfere with the transport of his crushed materials, which were being sold with GST numbers on sales invoices. The respondents argued that the petitioner's activities fell within the definition of a "mineral dealer" under the said Rules.

Held

The Court held that the petitioner squarely falls within the statutory definition of a "mineral dealer" as defined in Rule 2(xv) of the Tamil Nadu Prevention of Illegal Mining, Transportation and Storage of Minor and Mineral Dealers Rules, 2011. The definition of "mineral dealer" includes any person who carries on the business of buying, selling, storing, supplying, transporting, distributing, or delivering for sale of mineral or its products. The Court noted that the petitioner admitted to buying rough stones from quarry owners and selling the finished goods to third parties, which inherently involves storing the mineral in their unit premises. Therefore, the petitioner is engaged in the business of buying, selling, and storing the mineral. The Court found that the respondents were fully justified in insisting that the petitioner register himself as a dealer under the aforesaid Rule. No grounds were found to grant relief to the petitioner.

Key Issues

1. Whether the petitioner, who buys rough stones, crushes them into jelly, and sells the finished product, falls within the definition of a "mineral dealer" under Rule 2(xv) of the Tamil Nadu Prevention of Illegal Mining, Transportation and Storage of Minor and Mineral Dealers Rules, 2011, thereby requiring registration under the said Rules? Petitioner's contention: The petitioner argued that he should not be compelled to register as a dealer under the specified rules and that his business activities, including the transport of crushed materials with GST invoices, should not be interfered with. The petitioner's specific arguments are not detailed beyond reiterating the contentions in the affidavit. Respondents' contention: The respondents, through the Additional Advocate General, argued that the petitioner clearly fits the definition of a "mineral dealer" as defined in Rule 2(xv) of the Tamil Nadu Prevention of Illegal Mining, Transportation and Storage of Minor and Mineral Dealers Rules, 2011, because he buys, sells, and stores minerals and their products.

Sections Cited

Rule 2(xv)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
W.P(MD)No.18521 of 2019 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 23.03.2021 CORAM THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN W.P(MD)No.18521 of 2019 and W.M.P.(MD)No.14926 of 2019 D.Rajasubramanian ... Petitioner Vs. 1.The Commissioner of Geology and Mining, Thiruvika Industrial Estate, Guindy, Chennai – 32. 2.The District Collector, Kanyakumari District. 3.The Assistant Director of Geology and Mining, Collectorate Building, Nagercoil, Kanyakumari District. ... Respondents Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus, directing the respondents not to insist the petitioner to register as a dealer under Tamilnadu Prevention of illegal mining, transportation and storage of Minor and Mineral Dealers Rules, 2011 and consequently not to interfere with the transport of the crushed materials from the crushing unit of the petitioner to end users through sales invoice containing GST Number. For Petitioner : Mr.D.Saravanan For Respondents : Mrs.Narmadha Sampath, Additional Advocate General, Assisted by Mr.G.Arjunan, Government Advocate.

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