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Repeal of Ordinance 22 of 2005 The Schedule (See sections 2(d) and 3(1)) ANDHRA PRADESH MINERAL BEARING LANDS (INFRASTRUCTURE) CESS ACT, 2005 (Act No. 38 of 2005) [29th October, 2005] AN ACT TO PROVIDE FOR THE LEVY OF CESS ON MINERAL BEARING LANDS FOR THE PROMOTION OF INFRASTRUCTURE FACILITIES FOR RAPID EXPLOITATION OF MINERAL RESOURCES IN THE STATE OF ANDHRA PRADESH AND MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO. Whereas, the Andhra Pradesh (Mineral Rights) Tax Act, 1975 (Act 14 of 1975) has been enacted to levy and collect tax in addition to the royalty from the holder of mining lease on the mineral rights in respect of minerals specified in the Schedule thereto with a view to raising money for providing and improving the infrastructure facilities for rapid exploitation of vast mineral resources of the State; And whereas, the said Act has been declared by the Hon'ble High Court of Andhra Pradesh as ultra vires in its judgement in W.P.No.3238 of 1990 and its batch dated 12.4.1990 mainly relying on the judgement of the Supreme Court of India in India Cements Ltd., Vs., State of Tamilnadu (India Cements Case); And whereas, the Hon'ble Supreme Court of India in State of West Bengal Vs., Kesoram Cements Ltd., has held that royalty is not a tax and clarified the position as held by seven Judges Bench of the Supreme Court in the said judgment and accordingly further held that the cess levied on the land by West Bengal Primary Education Act, 1973 and West Bengal Rural Employment and Production Act, 1976 as amended by West Bengal Taxation Laws (Amendment) Act, 1992 covered by Entry 49 and 50 of List II of the VII th Schedule to the Constitution of India and the said amendment Act, 1992 is a valid legislation as it is intra vires the Legislative competence of the State; And whereas, the Apex Court has not overruled or set aside the judgment of the Hon'ble High Court of A.P. in W.P.No.3238/90 wherein the Andhra Pradesh (Mineral Rights) Tax Act, 1975 has been declared ultra vires based on the ratio laid down in the said India Cements Case; And whereas, it is expedient to enact a law to levy on mineral produce from the mineral bearing land to provide and improve infrastructural facilities for exploitation of the mineral resources in the State. Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fifty sixth Year of the Republic of India as follows:-