The Odisha High Court on Tuesday imposed an interim stay on the operation of a State Government’s notification that sought collection of stamp duty from mining companies operating in the State by the strength of a ‘deemed extension of lease’ clause.
The high court also imposed stay on the operation of a subsequent Government order arising out of the impugned notification on closure of mines which fail to pay stamp duty.
Beginning an analogous hearing of the 33 petitions filed by mining companies, including some PSUs, the court’s relief to the miners came just on the last day of expiry of the deadline set by the Government.
Issuing notice to the State Government to file its counters on the petitions, a Division Bench comprising Chief Justice C Nagappan and Justice Indrajit Mohanti imposed the stay on both May 9, 2013 notification on collection of stamp duty from mines and July 3, 2013 order of halting operation of those mines which fail to pay stamp duty by July 9.
The Bench was holding the joint hearing on all the petitions challenging the notification issued by the Revenue and Disaster Management Department and the subsequent closure order issued by the Steel and Mines Department. The petitioners have also prayed for quashing of the Indian Stamp (Odisha Amendment) Act, under which the State Government ordered to stop activities of defaulting miners.
Opposing the contentions of the petitioners, State Advocate General Ashok Mohanty argued that the claims made by the miners are wrong and out of place. “Stamp duty on deemed extension clause is not an additional levy,” he said while urging the court not to grant stay on the operation of the notification and the order.
During the hearing, the petitioners’ lawyers argued that there was no provision of stopping mining operation under the Mines and Minerals Development and Regulation (MMDR) Act or the Mineral Concession Rule (MCR) in the event of non-payment of stamp duty.
The MMDR Act and MCR are considered two vital laws of the land under which mining operations are regulated in the country, they said.