Allowed

Vc and General Counsel, Dr.Reddy'S Laboratories Limited, Hyd v. Prl. Secretary, Mines and Geology, Hyd and 2 Others

Andhra Pradesh HC17 Sept 2024WP/41739/2015

Case brief

AI extract

What is this about?

The High Court set aside a demand notice for seigniorage fees and penalties issued against a pharma company without considering its representation. The Court directed the respondent to reconsider the matter and pass reasoned orders within three months.

What did the court decide?

Impugned demand notice set aside. Petitioner directed to submit fresh representation with documents within two weeks. Respondent to pass reasoned orders within three months.

Vc and General Counsel, Dr.Reddy'S… — Pension and Retirement Benefits | Andhra Pradesh HC (2024)

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction)

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WEDNESDAY ,THE EIGHTEENTH DAY OF SEPTEMB TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE DR JUSTICE K MANMADHA RAO

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WRIT PETITION NO: 41739 OF 2015

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Between:

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Dr.Reddy's Laboratories Limited, Regd Off:8-2-337, Road No.3, Banjara Hills, Hyderabad-500 034, Rep. by its Senior Vice President & General Counsel, Sri. Suprio Dasgupta

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...Petitioner/s

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AND

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The State of Andhra Pradesh, Department of Mines and Geology, D- Block, Ind & Comm Dept, Secretariat, Hyderabad. Represented by its Principal Secretary.

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Director of Mines and Geology, State of Andhra Pradesh 8th & 9th Floors, BRKR. Bhavan, Saifabad, Hyderabad, Telangana.

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The Assistant Director of Mines & Geology, Behind Government Degree College Santhinagar Colony, Srikakulam, Andhra Pradesh

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...RESPONDENTS

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Petition under Article 226 of the Constitution of India is filed praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or direction or any other proceedings one in the nature of Writ of Mandamus declaring^theactionof the 3rd respondent in confirming the demand of Seigniorage fee and penalty thereon vide Demand Notice No; 4961/Vg/2015 dt.8.12.2015

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directing the petitioner to pay Rs.36,00,000/- Seigniorage Fee and five times penalty of Rs.1,80,00,000/- totaling to an amount of Rs.2,16,00,000/as illegal, arbitrary in violation of the Principles of Natural Justice, contrary to the Andhra Pradesh Minor Mineral Rules, 1960 besides violative of the petitioner's rights guaranteed under Article 14, 19(1 )(g) of the Constitution of India and consequently set aside the said demand notice and further direct the 3rd respondent to consider the representation^{dt.15.12.2015} of the petitioner.

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I.A. NO: 1 OF 2015fWPMP. NO: 53855 OF 2015)

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Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents not to take any coercive steps pursuant to the Demand Notice No: 4961/Vg/2015 dt.8.12.2015 issued by the 3rd respondent pending disposal^oftheabove writ petition.

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Counsel for the Petitioner(s): SRI. CHALLA GUNARANJAN

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Counsel for the Respondent: GP FOR INDUSTRIES COMMERCE (AP)

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Counsel for the Respondent Nos.1 to 3: GP FOR MINES AND GEOLOGY (AP)

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The Court made the following: ORDER

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APHC010471542015

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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction)

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[3310]

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WEDNESDAY ,THE EIGHTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE DR JUSTICE K MANMADHA RAO

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WRIT PETITION NO: 41739/2015

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Between:

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Vc & General Counsel, Dr.reddy's Laboratories Limited,^Hyd ...PETITIONER AND

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PrI Secretary Mines Geology Hyd 2 Others and Others ...RESPONDENT(S)

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Counsel for the Petitioner:

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1.CHALLA GUNARANJAN

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Counsel for the Respondent(S):

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1.GP FOR MINES AND GEOLOGY (AP)

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2.GP FOR INDUSTRIES COMMERCE (AP)

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The Court made the following:

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ORDER

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This Writ Petition is filed under Article 226 of the^{ConstitutionofIndiafor} the following relief:-

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,. to pass an order or direction or any other proceedings one in the nature of Writ of Mandamus declaring the action of the 3"^ respondent in confirming^the demand of Seigniorage fee and penalty thereon vide Demand Notice No.4961A/g/2015, dt 8.12.2015 directing the petitioner to pay Rs. 38,00,000/- Seigniorage Fee^and \

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five times penalty of Rs.1,80,00,000/totaling to an amount of Rs.2,16,00,000/- as illegal, arbitrary in^violation of the Principles of Natural Justice contrary to the^Andhra Pradesh Minor Mineral Rules, 1960 besides violative of the petitioners rights guaranteed under Article 14, 19(1)(g)^of the Constitution of India and consequently set aside the said demand notice and further direct the 3""^ respondent to consider the representation dt 15.12.2015 of the petitioner and to pass"

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The case of the petitioner in brief is that the petitioner company is engaged in manufacture of Active Pharmaceuticals Ingredients(API ) which are used by Formulation(FTO) projects and has its manufacturing^{unitsatvarious} places in the State of Telangana and the State of Andhra Pradesh. The petitioner company has acquired an extent of 100.37 acres in Sy.Nos.57 to 60, 61P. 62 to 77 & 80 of Devunipalavalasa Village, Ranasthalam Mandal, Srikakulam District, Andhra Pradesh for setting up one of its manufacturing unit and submitted a proposal to the Central Government to recognize it as per Section 3 of the Special Economic Zones Act, 2005. The Government of India, Ministry of Commerce and Industry (Department of Commerce) issued notification in the official Gazette, Extraordinary Addition vide S.0.2880(E), dated 11.11.2009 under Section 4(1) of the Special Economic Zones Act, 2005 read with Rule 8 of the Special Economic Zones Rules, 2006 notifying the property of the petitioner in Devunipalavalasa Village as a Special Economic Zone. After obtaining all the other statutory permissions, the petitioner has constructed the manufacturing plant to produce active pharma ingredients and commenced commercial operations from^2013.

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While so, the 3 rd respondent has issued show-cause notice No.4961A/g/2015, dated 30.10.2015 calling upon the^petitionerto show cause as to why Rs.36,00,000/seigniorage fee and five times penalty of Rs.1,80,00,000/be levied and demanded the petitioner to submit an explanation within 15 days from the date of receipt^{ofthenotice.Immediately,} the petitioner made a representation, dated 05.12.2015^{tothe3'^'^respondent} requesting the 3'^'^ respondent to grant further time^{of15daystosubmitthe} explanation. But, while mechanically rejecting the representation of the petitioner, the 3 rd respondent has issued the impugned Demand Notice No.4961A/g/2015, dated 08.12.2015 directing the petitioner to pay Rs.36,00,000/- seigniorage fee and five times penalty of Rs.1,80,00,000/totalling an amount of Rs.2,16,00,000/- immediately.^{Aggrievedbythesame.} the present Writ Petition is filed.

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A counter affidavit is filed by Respondent No.3. In^thecounter affidavit it is stated that the petitioner should file an appeal before the Director of Mines and Geology, Hyderabad against the Demand^{Notice issuedbythe} 3'^^ respondent. Further, if the petitioner is not^{satisfiedwiththeappealorders} they can file a Revision before the Government. But,^{withoutavailingthe} alternative remedy, the petitioner has filed the present^{WritPetitionwhich} is not maintainable.

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Heard Mr S.V.S.S.Siva Ram, learned counsel appearing on behalf of Mr Challa Gunaranjan, learned counsel for the^petitioner and^the

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^7f' ;""

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learned Assistant Government Pleader for Mines and Geology appearing fc the respondents.

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On hearing, learned counsel for the petitioner submits that in response to the show-cause notice, dated 30.10.2015, the petitioner has made representation, dated 05.12.2015 to the respondent, requesting to grant a further time of 15 days for submission of the reply. But, v/ithout considering the said representation, the 3'^ respondent has issued the impugned Demand Notice No.4961A/g/2015, dated 08.12.2015 directing the petitioner to pay Rs.36,00,000/- seigniorage fee and five times penalty of Rs.1,80,00,000/- totalling an amount of Rs.2,16,00,000/- immediately. The learned counsel further submits that no opportunity and adequate time was given to the petitioner by the 3'^ respondent while confirming the demand which is illegal, arbitrary and violative of principles of natural justice. Hence, the learned counsel for the petitioner requests to pass appropriate orders.

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Learned Assistant Government Pleader for Mines and Geology appearing for the respondents opposed for grant of any relief in the Writ Petition and prayed to dismiss the same.

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Considering the submissions of both the learned counsels,^the impugned Demand Notice No.4961A/g/2015, dated 08.12.2015 issued by the 3'^ respondent is hereby set aside. The petitioner is directed to submit a fresh . representation to the 3''^ respondent along with all relevant documents within a period of two (02) weeks from the date of receipt of a copy of this order. On

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receipt of the said representation, the respondent is directed to consider the same and pass appropriate reasoned orders strictly in accordance with law within a period of three (03) months thereafter.

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With the above directions, this Writ Petition is disposed^of.There shall be no order as to costs.

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As a sequel, miscellaneous applications pending, if any, shall stand

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closed.

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Sd/- K.L.PAVANI ASSISTANT REGISTRAR

To,

//TRUE COPY//

SECTION OFFICER

Principal Secretary, Department of Mines and Geology,^D-Block,Ind& Comm Dept, Secretariat, Hyderabad.

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Director of Mines and Geology, State of Andhra Pradesh^8th&9th Floors, BRKR. Bhavan, Saifabad, Hyderabad, Telangana.

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The Assistant Director of Mines & Geology, Behind^{GovernmentDegree} College Santhinagar Colony, Srikakulam, Andhra Pradesh

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One CC to Sri. Challa Gunaranjan Advocate [OPUC]

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Two CCS to GP For Industries Commerce (AP),High^{CourtOfAndhra} Pradesh. [OUT]

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Two CCs to GP For Mines And Geology (AP) ,High Court^OfAndhra Pradesh. [OUT]

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Three CD Copies

HIGH COURT

»• : f

DATED: 18/09/2024

ORDER

WP.No.41739 of 2015

ANDS^
g 2 8 OCT 202't Oi,
, Current Section ^

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DISPOSING OF THE WP WITHOUT COSTS

Vc and General Counsel, Dr.Reddy'S Laboratories Limited, Hyd v. Prl. Secretary, Mines and Geology, Hyd and 2 Others

Case brief

What is this about?

What did the court decide?

Vc and General Counsel, Dr.Reddy'S Laboratories Limited, Hyd v. Prl. Secretary, Mines and Geology, Hyd and 2 Others

Case brief

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What did the court decide?

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