LexP. KANNADASAN ETC. ETC. versus STATE OF TAMIL NADU AND ORS. ETC. ETC.
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A P. KANNADASAN ETC. ETC. v. STATE OF TAMIL NADU AND ORS. ETC. ETC. JULY 26, 1996 B [B.P. JEEVAN REDDY AND SUHAS C. SEN, JJ.] Mines & Minerals: Mines and Minerals (Regulation & Development) Act, 1957-Sections C 2 and 9-Scope-He/d, Section 2 of the MMRD Act totally and not merely panly denudes tile States of the power to levy any tax oil the milleral . .-Hence, before enacting the Cess and other taxes oil Minerals (Validation) Act, 1992 no funher declaration of denudation of the States' power was necessmy-Con- stitution of India, Schedule VII, List I Entry 54. D Cess and Other Taxes on Mineral (Validation) Act, 1992-Section 2( I), (2), (3) read with Schedule-Validity of-State laws imposillg cess or other taxes Oil minerals found to be beyond the competence of the State Legisla- ture-Provisions of Section 2 validating such State laws, held, not beyond the legislative competence of Parliament-Provision in Sectioll 2(1) validating the E State laws from the date on which they were enacted by the State Legislature concerned, held, l!Ot bad for retrospectivity-Stalllte /aw-Validating statute-...:Statute validating a tax retrospectivel.,,-Validity-Taxation-Taxing statue;-Retrospective validatioll of a valid taxing statute-Constitutioll of India, Anicle 265. F Section 2(1), Schedule and Preamble-Scope of Section 2(1j-Statute G law-Validating statute-Language of, whetlzer confmm to any set or standard fonnul_.-Held, there was no set or standard fonnula to which all Validation Acts should confonn-Sugarcane Cess (Validation) Act, 1961, Section 3. Sectioll 2 and Preambl<-Scope of-Held, Section 2 not only validated the taxes and cesses already recovered but also en1poivered to collect the unrecovered taxes and cesses--Afere absence of a clause or words con·espond- ing to Section 3(J)(c) of the Sugarcane Cess (Validation) Act, cannot justify a different conclusion. H Section 2 and the Schedul~Taxes and cesses on milleral levied ill 92 - P.KANNADASAN v. STATE 93 different States at different rateS"-Levy of the same by Section 2 of the Act by A Parliament-Held, neither discriminatory nor ultra vires Entry 54 of List I of Schedule VII nor beyond Parliament's power nor bamd by Mines and Minerals (Regulation & Development)Act, l957-Geographical discrimina- tion-Justification f01-Mines and Minerals (Regulation & Developmellt) Act, l957 Section 9. Sections 1(3) & 2( /)-Statute law-Temporary Act-W710t iS"-Held, a tempormy Act is one which expires on the expiry of the specified period-In absence of the mention of such a peiiod, merely because the levies created by Section 2( I) of the Act were to remain in force 011/y up to the date specified B therein ( 4-4-1991 ), the said Act cannot be said to be a temporary one. C Section 2(1) and (3 )-Recovery machinery-Survival of, after 4-4- 1991-Notwithstanding the cessation of the levy created by Section 2( I) w.e.f 4-4-1991, the recovery 111achinery, held, continues to re1nain in existence. Section 2(1) and the Schedule-Object-By virtue of the deeming D clause in Section 2( I), held, the relevant provisions of the state enactments must be deemed to have been enacted by the respective State Legislature and to have remained in force up to 4-4-1991. Constitution of India : Articles 245, 246 and 265 read with Schedule VII List I Entries 54 & 97 & List II Entries 23 and SO-Statute law-Validating statute-Constitution- al law-Separation of powers. Schedule VII List-I Entry 54-Before enacting the Cess and Other Taxes on Mineral (Validation) Act, 1992 no further declaration of denudation of the States' power was necessary. Articles 245, 265 & Schedule VII List I Entry 54-fCess/tax levied by an act enacted under Entry Stf-Pwpose of such cess/tax, held, need not be regulation of mines and mineral development. Interpretation of Statutes: Subsidiary ntle of interpretati01r-Conjunctive or disjunctive-Deeming provision-Statute la\1>-Legislation by incorporatioir-ln the context of Cess E F G and Other Taxes on Mineral (Validation) Act, 1992. H 94 SUPREME COURT REPORTS (1996] SUPP. 4S.C.R. A Wards and Phrases : "Imposition and ca/lectia11"-Meaning of-In the B c context of Cess and Other Taxes 011 Mineral (Validation) Act, 1992. "Checks and balances"-ln the context of separation of powe1-Con· stitutian of India. Section 115 of the Tamil Nadu Panchayat Act, 1958 levied in every Panchayat Development Block a local cess @ U.45 paise on
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