Receiving a major jolt from the Odisha High Court, which stayed the operation of the notification for collection of stamp duty from mine owners operating under deemed extension of mining and also sought a judicial review of the Indian Stamp (Odisha Amendment) Act 2013 passed by the State Assembly, the State Government on Tuesday issued instructions to all concerned district Collectors to stop
collection of stamp duty as well as to refrain from shutting down the mines over nonpayment of duty. The Revenue and Disaster Management Department on May 10 had in a notification instructed the district Collectors for collection of stamp duty basing on new the amended legislation. Accordingly, the Steel and Mines Department had on July 3 asked the Collectors to ensure collection of the requisite stamp duty by July 9 from the lessees who avail the benefit of deemed extension.
The Department’s Secretary had also cautioned that failure to deposit the stamp duty would lead to stopping of the mining operations. However as many as 33 petitions were filed in the High Court by mine owners, including Central PSUs like the Steel Authority of India and the Mahanadi Coalfields ltd challenging both the Stamp Duty Amendment Act and the departmental notification there-under for collection of the duty and shutdown of mines for failure of payment of the duty.
On receipt of the High Court’s order officially, the nodal department of Revenue and Disaster Management asked the Collectors to stop implementation of the Act and collection of the duty as well till further orders. According to the revenue authorities, the Government would make para-wise comments on the petitions filed in the High Court and would file an affidavit within the due period after consultation with the law Department. However, sources said the Government would consider going to the Supreme Court against the order of the High Court after due examination of the order.