#mining lease

The tribunal quashed a Rs 89.13 lakh service tax demand, holding that royalty payable under a mining lease granted before 1 April 2016 falls outside the service tax net. It also ruled that the extended limitation period cannot be invoked, benefiting entities with pre-2016 mining assignments.

The Odisha High Court ordered the state to execute OCL Iron & Steels Ltd.’s mining lease within eight weeks, finding that the selective refusal breached Article 14’s equality guarantee. This mandates uniform treatment for all applicants under the MMDR Act, affecting pending lease approvals across the state.

Supreme Court rules stamp duty for mining leases must be computed on anticipated royalty under Section 26 proviso of the Indian Stamp Act, 1899, rejecting dead rent as the basis. The decision impacts lease valuation and stamp duty liability for mining operators nationwide.

Supreme Court rules that the State's statutory authority under Section 15(3) of the MMDR Act to revise royalty rates prevails over silence in mining lease deeds. The judgment reinforces that statutory provisions override contractual gaps, ensuring compliance with Rules of Business for minor minerals.

The Supreme Court ruled that the State's power under Section 15(3) of the MMDR Act to revise royalty and dead rent prevails over mining lease deeds silent on revision. The 50% enhancement was upheld as non-arbitrary, and Chief Minister's approval satisfied Rules of Business compliance, setting a precedent for statutory authority over contractual terms.

Allahabad HC rules that the State’s unjustified delay in terminating a mining lease under Rule 58 of the U.P. Minor Minerals Rules, 1963, renders its action arbitrary and violates Article 14. The court held that royalty liability ceases once mining operations stop, and directed adjustment of ₹70 lakh deposits against earlier installments, setting a precedent for prompt State action in lease terminations.

The Rajasthan High Court has ruled that mining leaseholders cannot be held liable for District Mineral Fund contributions dating back to January 2015, as the Central Government failed to prescribe mandatory rates by that date. This decision reinforces the principle that statutory financial obligations require clear, timely notification and cannot be imposed retrospectively, directly impacting all non-coal mining operators across India.

Karnataka High Court ruled that the absence of permit numbers on invoices does not, by itself, establish dishonest intent under Section 411 IPC. The court emphasized that prosecution must prove knowledge or conspiracy, setting a precedent for corporate criminal liability in cases involving stolen property.

Calcutta High Court rules that the lease period for mining contracts begins from the date of registration, not physical handover, even if possession is delayed by state authorities. The decision clarifies that force majeure clauses cannot be invoked for administrative delays, impacting leaseholders' operational timelines and contractual obligations.

The Calcutta High Court has ruled that applications for mining leases rejected under the repealed 2002 Rules cannot be reconsidered under the 2016 regime unless a Letter of Intent or grant order was already issued before the new rules took effect. This reinforces administrative finality and closes a procedural loophole for stale claims, impacting hundreds of pending applications across West Bengal.

The High Court of Telangana holds that authorities cannot indefinitely delay consideration of NOC applications for mining projects after granting LOI, upholding procedural fairness under Article 21.

The CETAT holds that royalty and dead rent collected for mining leases are not taxable as renting of immovable property, as it constitutes a sovereign function under MMDR Act, 1957.