Dismissed

Mega Engineering and Infrastructure Limited, Rep. by v. The Government of Andhra Pradesh

Telangana HC18 Jun 2013WP/15716/2010

Case brief

AI extract

What is this about?

The court disposed of a writ petition challenging a penalty levied as seignorage fee equivalent to the petitioner's grievance that it amounted to double punishment. The court directed that proof of fee deduction from bills must be filed within two months to avoid the penalty.

What did the court decide?

Penalty shall not be levied if proof of seignorage fee deduction is filed before the Assistant Director of Mines and Geology within two months.

Mega Engineering and Infrastructure Limited… — Mining and Natural Resources | Telangana HC (2013)

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THE HON’BLE SRI JUSTICE M.S. RAMACHANDRA RAO W.P.No.15716 of 2010

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ORDER

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The petitioner is a company incorporated under the Indian Companies Act, 1956 and is a Registered Special Class Contractor of the Government of Andhra Pradesh and undertakes several civil works for Government departments. Under an Agreement No.30/2008-2009 dt.18-02-2009, certain works were entrusted to the petitioner by the respondents. These civil works involve utilization of sand. The petitioner contends that in the estimates itself, the seignorage fee payable on the sand was included and in the bills paid to the petitioner, the component of seignorage fee is deducted. Its grievance is that respondents are levying one time penalty, equivalent to seignorage fee by invoking the Rule 9-Y (2) of the Andhra Pradesh Minor Mineral Concession Rules, 1966 and that this would amount to a double punishment on the petitioner and such levy of penalty is arbitrary and illegal.

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2. Heard the learned counsel for the petitioner and the learned Government Pleader for the respondents.

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3. The issue raised in this writ petition has been dealt with by this Court in W.P.No.520 of 2012, wherein while disposing of the writ petition, this Court directed that in case the seignorage fee on the sand utilized by the petitioner in the works executed by it is deducted from the bills and proof thereof is filed before the Assistant Director of Mines and Geology, the penalty shall not be levied.

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4. For reasons alike and following the said decision, this writ petition is also disposed of directing that in case the seignorage fee on the sand utilized by the petitioner in the works

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executed by it is deducted from the bills and proof thereof is filed before the concerned Assistant Director of Mines and Geology within a period of two months from the date of receipt of a copy of this order, the penalty shall not be levied. No costs.

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___________________________________ JUSTICE M.S. RAMACHANDRA RAO

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Date :18-06-2013 kvr

Mega Engineering and Infrastructure Limited, Rep. by v. The Government of Andhra Pradesh

Case brief

What is this about?

What did the court decide?

Mega Engineering and Infrastructure Limited, Rep. by v. The Government of Andhra Pradesh

Case brief

What is this about?

What did the court decide?

What the court decided

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