As expected, the controversy over payment of stamp duty between the State Government and mining companies working under deemed extension clause reached the Odisha High Court on Monday, just a day before the Government deadline for collection of levy expires.
The Government earlier this month had asked all district Collectors to stop the mining activities in their respective districts of those miners operating under deemed extension provision, if they fail to deposit their stamp duty by July 9, 2013.
The Government’s decision had come after a notification was issued in May this year under the provisions of the Indian Stamp (Odisha Amendment) Act-2013 and the Rules governing them. The provisions under the revised Act necessitated the miners to pay stamp duty even after the expiry of the lease, if the mining activities are continuing under deemed extension provision.
Challenging the Government notification, the Tata Steel first approached the High Court seeking quashing of the amended Act and the subsequent notification arising out of the Act. While the Tata Steel’s petition was listed for adjudication on Monday, many other miners, including public-sector units like the National Aluminium Company (Nalco), the Steel Authority of India (SAIl), the Coal India limited, and other miners under the Federation of Indian Mineral Industries (FIMI) also followed suit.
Sources said a Division Bench of the High Court comprising Chief Justice C Nagappan and Justice Indrajit Mohanti is likely to make analogous hearing of all the petitions arising out of the July 3, 2013 order of the State Government from Tuesday.
It may be mentioned that apart from the Tata Steel and the PSUs, as many as 90 other individual mining companies are continuing their activities for over decades under the deemed extension clause, which allows them run their mines even after expiry of their lease period as their applications for renewal of the lease are pending before the Government.