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2018 (9) TMI 2141 - HC - Indian LawsConstitutional validity of the Goa Rural Improvement and Welfare Cess Act, 2000 and the Goa Rural Improvement and Welfare Cess Rules, 2006 - Validity of demand notices issued under the impugned enactments and the notification issued on 8 October 2010 - HELD THAT:- Considering substance and object of the Goa Cess Act and Rules vis-a-vis the MMDR Act and the Rules framed there under, it is found that there is no irrevocable conflict between the concerned Union Legislation and the State Legislations. The Goa Cess Act and Rules are targeted for augmentation of revenue to provide infrastructures in the State without impinging on the mineral regulation. The Act is traceable to the entries relied upon by the State. Sufficient evidence placed on record of spending the money, both on road infrastructure and welfare activities. It cannot be said that the Petitioners do not benefit at all from the services rendered and that there is not even a remote connection. The Goa Cess Act and the Rules are a device for the State to augment its resources. The services rendered by the collection of the levy benefits the Petitioner as well, and there exists a co-relationship. Therefore, the Goa Cess Act and the Rules, whether it imposes a tax or fee, cannot be said to be unconstitutional - It needs to be noted that by Notification dated 6 April 2016 the levy where royalty is paid to the Government has been reduced to 'nil'. Thus, the challenge of the Petitioner on the constitutional validity of the Goa cess Act and the Rules on the ground of legislative competence must fail. Retrospective levy of the Cess - HELD THAT:- The State has argued that when the notification dated 23 January 2006 was published, it was clear that 1 February 2006 would be the appointed date on which the Act would come into force, as well as the same would be the date on which the levy would be made applicable and collected, and it was only a typographical error that Section 3(1) was not mentioned. A corrigendum to that effect was issued. Perusal of the said notification shows that it a corrigendum to the original Notification dated 23 January 2006, by which it was clarified that under Section 1(3) and 3(1), the Goa Cess Act notified the appointed date as 1 February 2006 for the purpose of Section 1(3) and for the purpose of Section 3(1). Therefore, it cannot be held that the power to levy cess was available only after 8 October 2010. The impugned enactments cannot be struck down on the basis of the challenge levied by the Petitioner. The impugned Notification is valid and lawfully issued and the demands made under the impugned Act, Rule and Notification are valid and legal. This being the position, there is no question of refund of the cess collected. The Petitioner is not entitled to any relief in this Petition. The Writ Petition is dismissed.
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