Eastern Coalfields Limited Vs. Century Textiles and Industry Ltd. & Ors
 INSC 91 (4 April
S. Rangnathan, S.
1991 AIR 1593 1991 SCR (2) 188 1992 SCC Supl. (1) 460 JT 1991 (2) 595 1991
of India, 1950; Schedule VII List I Entry 54
and List II Entries 23, 49, 50 and 66-Mineral areas development-Cess imposition
of-Competency of state Legislature of legislate.
142, 246 and 265 - Statute declaration of invalidity Refund-Whether automatic
and inevitable consequence.
Pradesh Karadhan Adhiniyam 1982 |Madhya Pradesh Areas Development Cess Rules
1982-Ss.8,9| Rule 10-Mineral Areas development-Cess-Imposition of.
levy of cess under the Madhya Pradesh Karadhan Adhiniyam 1982 is not a valid
levy has been held by the Madhya Pradesh High Court in Hiralal v. State of M.P., 1986 MPL J/514 and this has been confirmed by this
Court in its judgement dated April 4, 1991
in the appeal preferred by the State of Madhya Pradesh.
the judgement of High Court the amounts collected from various assessees had
not be refunded. The State was continuing to collect the cess on the strength
of interim orders in an appeal filed in this Court.
State Government and the Coalfields concerned preferred petitions for leave to
appeal to this Court.
of the appeals, this Court, Held (1) The collection of any cess under the
Madhya Pradesh Karadhan Adhiniyam 1982 subsequent to the date of the judgement
of the Madhya Pradesh High Court in Hiralal's case 1986 MPLJ514 cannot be
upheld.[190D] (2) The respondents will not be entitled to the refund of any cess
paid or collected prior to the date of said judgment. They would however, be
entitled to the refund of the amounts collected subsequent to 189 that date
from the Coalfields or the State, as the case may be, along with the interest
in cases where there is an interim direction or undertaking to pay such
interest at the dates specified in such direction or undertaking.[190E]
APPELLATE JURISDICTION : Civil Appeal No. 5501 of 1990 etc. etc.
the Judgment and Order dated 22.8.1990 of the Madhya Pradesh High Court in Misc
P.N. 845 of 1990.
Satish Agnihotri, P.S. Nair, T.G.N. Nair and Shri Narain for the Appellant.
Abhay Sapre, Sandeep Narain and S.K. Agnihotri for the Respondents.
of the Court was delivered by RANGANATHAN,J. These Civil Appeals and SLPs raise
the same issues as have been dealt by us in our judgement of even date in Civil
Appeal No. 1640 to 1662 of 1986 and connected cases. They arise in the
connected judgment referred to above we have held that the levy of cess under
the Madhya Pradesh Karadhan Adhiniyam, 1982 (Act 15 of 19820 is not a valid
levy. In fact it had been so held by the Madhya Pradesh High Court in Hiralal
v. State of M.P.,  MPLJ 514. The appeal
preferred by the State of Madhya Pradesh
has been disposed of by us in the connected batch of cases above referred to.
the judgment of the High Court the amounts collected from various assessees had
not been refunded; on the contrary, the State appears to have continued
collecting the cess apparently on the strength of the interim orders obtained
in one of the above appeals viz. C.A. No. 1649/86 though, as pointed out by us
in the connected judgement no such modification seems to have been ordered by
this Court of the initial order of 2.5.86.
April/May, 1990, some of the assessees filed writ petitions in the High Court
challenging the continued recovery of the cess and asking for the refund of
amounts already collected. The respondents brought to the notice of the Court
the orders of this Court in the 190 earlier matter and pleaded that since the
collections were being made in pursuance of the orders of this Court the writ
petitions could not be entertained. The High Court rejected the respondent's
plea and allowed the writ petitions. The Coalfields concerned and the State
Government have preferred petitions for leave to appeal from the order dated
28.7.90 and 22.8.90 in these cases. In one set of these appeals lave has been
granted by us earlier:C.A. Nos. 5501 and 5502 of 1990. The other SLPs had been
listed before us subsequent to our hearing the main appeals and it was agreed
that suitable orders may be passed thereon in the light of the conclusion we
reach in the main batch of appeals. we grant leave to appeal in all the Special
Leave Petitions and proceed to dispose of all the appeals by this judgment.
appeals have to be disposed of in the light of our judgment in the connected
batch of cases referred to above. We have held there that the collection of any
cess under Act 15 of 1982 subsequent to the date of the judgement of the Madhya
Pradesh High Court in Hiralal's case  MPLJ 514 cannot be upheld. For the
reasons set out in the judgment in the connected cases,s we hold that the
appellant will not be entitled to the refund of any cess paid or collected
prior to the date of the said judgment.
would, however, be entitled to the refund of the amounts collected subsequent
to that date from the coalfields or the State, as the case may be along with
interest in cases were there is an interim direction or undertaking to pay such
interest at the rates specified in such direction or undertaking.
these observations these appeals are disposed of.
Appeals disposed of.