STATE OF UTTARAKHAND & ORS. versus M/S. KUMAON STONE CRUSHER

Citation: [2017] 11 S.C.R. 591 · Decided: 15-09-2017 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Disposed off
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Judgment (excerpt)

[2017] l 1 S.C.R. 591 
STATE OF UTTARAKHAND & ORS. 
v. 
M/S. KUMAON STONE CRUSHER 
(Civil Appeal No. 14874 of2017) 
SEPTEMBER 15, 2017 
[A. K. SIKRI AND ASHOK BHUSHAN, JJ.] 
Forest Act, 1927: 
A 
B 
s.41 - Levy of transit fee on forest produce by three States-
Uttar Pradesh, Uttarakhand and Madhya Pradesh - Validity of -
C 
Notification dated 28.05.2001 prescribing fee for issuing pass for 
transit afforest produce - Held: Levy of transit fee is valid -
Notification dated 28.05.2001 issued by the Stale of Madhya 
Pradesh cannot be said to be beyond the scope of 1: 5 of 2000 
Rules and s. 41 of the 192 7 Act - State of Madhya Pradesh was 
D 
fully justified in fixing rate of transit fee at the rate of Rs. 71- and 
Rs.41- per tonne which was well within the power of the Stale ulr. 5 
of 2000 Rules - High Court committed error in quashing the order 
dated 28.05.2001 - Notification prescribing fee is valid - Uttar 
Pradesh Transit of Timber & other Forest Produce Rules, 1978 -
Madhya Pradesh Transit (Forest Produce) Rules, 2000. 
E 
Transit fee - Levy oj; on transit afforest produce - Stones, 
stone boulders converted into stone grits, stone chips and stone 
dust, if looses its character of.forest produce and transit fee is 
/eviable - Held: Crushing of stones, stone boulders into stone grits, 
stone chips and stone dust does not result into a new commodity 
F 
different .fi"om forest produce - Crushed materials continue to be 
sione and retain their nature afforest produce and transit fee is 
leviable. 
Transit fee - Levy of on transit of forest produce - Marbles 
blocks, marble slabs, marble chips, if.forest produce and /eviability 
G 
of transit fee on the said goods - Held: Marbles blocks, marble 
slabs, marble chips are all forest produce - Transit Fee 011 marble 
slabs and tiles cannot be denied - State did not commit any error in 
demanding the Transit Fee on transit of the said goods. 
H 
591 
592 
A 
B 
c 
D 
E 
F 
G 
H 
SUPREME COURT REPORTS 
[20 l 7] 11 S.C.R. 
Flay ash, clinker. synthetic gypsum, ifforest produce - Held: 
Flay ash. clinker. ;ynthetic gypsum are not forest produce - However, 
Gypsum is naturally found and ob1ained in the nalllral form, hence, 
is a forest produr;e. 
Coal with its various varieties, limestone, hydrated lime, quick 
limestone, slake lime: and veneer and p~ywood waste, ifforesl 
produce - Held: Formation of coal is due to large tracts of forest 
getting buried unrfer the ground due to natural processes, thus, is a 
forest produce - Since the essential character of the other products 
dues nut change. thus, all are forest produce. 
Mines and Minerals (Development and Regulation) Act, 
IY57 - 1957 Act if impliedly repeals the 1927 Act - Held: Forest 
Act, 1927 and the Rules }i"amed 11/s. 41 are neither overridden nor 
impliedly repea/4d, altered or amended by the 1957 Act and the 
Rules framed thereunder - On looking into the pith and substance 
of both !he legisl41tions, it is clear that both the legislations operate 
in different spheres and fields - Forest Act deals with forest and 
forest wealth with a different object and the 1957 Act deals with 
mines and mineral wealth - it cannot he said that in view of the 
1957 Act especially as amended by Act 38 of 1999, the provisions 
of' 1927 A,;·t and' 1978 Rules have become void, inoperative and 
stand repealed - Constitution of India - Arts. 254 and 372. 
s. 2(4)(b) - Words "brought jrom" ins. 2(4)(b) - Interpretation 
of - Held: Words "brought fi'om" in s. 2(4J(b) means brought ji-om 
forest Ji'om wherd forest produce has originated - Words 'brought 
from forest' cannot be read as "brought through forest" - For an 
item to be treated as forest produce, its origin may be in any forest 
within the State of UP. or in a forest outside the State of UP. 
s. 38A(b) - Forest - Meaning of - Held: Definition of forest 
cannot be confined only to reserved forests, village forests and 
protected forests 41s enumerated in 1927 Act - Forest shall include 
all statutorily recognised forests, whether designated as reserve, 
protected or othenwise and also shall include any area regarded as 
forest in the Government record irrespective of the ownership. 
s. BOA - Whether goods or forest produce passing thro11gh 
the roads as notified by notijication dated 10.02.1960 can he treated 
to be passing thm11gh a protected forest - Held: Roads notified by 
STATE OF UTTARAKHAND & ORS. v. MIS. KUMAON STONE 
CRUSHER 
notification dated 10.02.1960 uls. 80A ca
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