IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVA (Special Original Jurisdiction) FRIDAY, THE NINTH DAY OF MAY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 12183 OF 2025ANn 12325 OF 2n7S WRIT PETITION NO: 12183 OF 2025 Between: M/s Arjun Minerals, Momidi Village, Chillakur Mandal, Tirupathi District, Andhra Pradesh With MDL No. MDL0107005619 Represented Proprietor Mr. Mogiligunta Ravi. by its ...Petitioner AND 1. State of Andhra Pradesh, Represented by its Principal Secretary (Mines) Industries and Commerce Department, Secretariat Buildings Velagapudi, Amaravathi Andhra Pradesh 2. The Director of Mines and Geology, Ibrahimpatnam, Vijayawada District, Andhra Pradesh . NTR 3. The Divisional Mines and Geology Officer, Gudur Tirupathi District 4. 4. The Assistant Director of Mines and Geology, SPSR Nellore District 5. The District Mines and Geology Officer, Tirupathi District 6. The District Mines and Geology Officer, SPSR Nellore District ...Respondents^ of India praying that in the circumstances stated in the affidavit filed therewith, the High Court Petition under Article 226 of the Constitution may be pleased to issue a writ, order or direction more particularly nature of the Writ of Mandamus declaring the Show Cause Notice vide MDL0107005619/SPL-TEAM/2024 dated 04.02.2025 and the Demand Notice No. MDL0107005619/SPL- TEAM/2024 dated issued by the Respondent No.3 herein thereby levying and demanding a Penalty of Rs. 4,40,53,758/- (Rupees Four Crores Forty Lakhs fifty thousand seven hundred and fifty eight only) purportedly 26(3)(ii) of the AP Minor Mineral Concession Rules, 1966 as amended till date as sheer arbitrary, unjust, without jurisdiction besides being violative of Principles of Natural Justice and contrary to the Mines (Development and Regulation) Act, 1957, AP Minor Mineral Rules, 1966, AP Mineral Dealer Rules, 2017 rights of the Petitioner guaranteed under Articles 14, 19(1)g and 300A of the Constitution of India and consequently set aside the lA NO: 1 OF 202^ one in the consequent 19.03.2025 three under Rule and Minerals Concession same. Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court pleased to suspend the Demand Notice may be No. MDL0107005619/SPL- TEAM/2024 dated 19.03.2025 issued by the Respondent No.3 herein. Counsel for the Petitioner: M/s CKR ASSOCIATES Counsel for the Respondents: GP FOR MINES AND GEOLOGY WRIT PETITION NO: 12325 OF 2()?R Between: M/s Arjun Minerals, Momidi Village, Chillakur Mandal Andhra Pradesh With MDL No. MDL0107005619 Proprietor Mr. Mogiligunta Ravi Tirupathi District, Represented by its ...Petitioner AND 1. State of Andhra Pradesh, Represented by its Principai Secretary (Mines) Industries and Commerce Department, Secretariat Buildings Velagapudi, Amaravathi Andhra Pradesh 2. The Director of Mines and Geology, Ibrahimpatnam, Vijayawada District, Andhra Pradesh 3. The Divisional Mines and Geology Officer, Gudur, Tirupathi District 4. The Assistant Director of Mines and Geology, SPSR Nellore District 5. The District Mines and Geology Officer, Tirupathi District 6. The District Mines and Geology Officer, SPSR Nellore District NTR -^^rRespondents Petition under Articie 226 of the Constitution of india praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to issue may a writ, order or direction more particularly one in the nature of the writ of MANDAMUS deciaring Show Cause Notice vide MDL0107005619/SPL-TEAM/2024 dated 22.08.2024 and the consequent Demand Notice No. MDL0107005619/SPL- TEAM/2024 dated 19.09.2024 issued by the Respondent No.3 herein thereby levying and demanding a Penalty of Rs. 1,85,13,864/- (Rupees One Crore Eighty Five Lakhs Thirteen Thousand Eight Hundred sixty Four Only) purportedly 7(h) of the AP Mineral Dealer Rules under Rule 8(i) and 2017 and Rule 26(3)(ii) of the AP Minor Mineral Concession Rules 1966 (as amended till date) as sheer arbitrary, unjust, without jurisdiction besides being violative Natural Justice and contrary to the Mines of Principles of and Minerals (Development and Concession Rules, 1966 AP Regulation) Act, 1957, AP Minor Mineral Mineral Dealer Rules, 2017 rights of the Articles 14, 19(1)g and 300A of the Constitution Petitioner guaranteed under of India and consequently set aside the same. 4^ lA NO: 1 OF 2Q2fi Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the Demand Notice No. MDL0107005619/SPL- TEAM/2024 dated 19.09.2024 issued by the Respondent No.3. Counsel for the Petitioner: M/s CKR ASSOCIATES Counsel for the Respondents: GP FOR MINES AND GEOLOGY The Court made the following Common Order: APHC010234952025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) FRIDAY ,THE NINTH DAY OF MAY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 12183/2025 [3458] Between: Arjun Minerals ...PETITIONER AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner: 1.CKR ASSOCIATES Counsel for the Respondent(S): 1.GP FOR MINES AND GEOLOGY WRIT PETITION NO: 12325/2025 Between: Arjun Minerals ...PETITIONER AND State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner: 1.CKR ASSOCIATES Counsel for the Respondent(S): 1.GP FOR MINES AND GEOLOGY 2 The Court made the following: COMMON ORDER: Heard the learned counsel for the petitioners and the learned Government Pleader for Mines and Geology for the respondents. Petitioner is engaged in the business of processing, purchase 2. and supply of Siliica, Sand and other minerals. The petitioner holds a Mining Dealer License. The challenge in the writ petition is to the demand notices issued in furtherance of the show cause notices dated 22.08.2024 and 04.02.2025. Learned counsel for the petitioner, Sri Sivaram, contends that 3. pursuant to the first show cause notice dated 22-08-2024 the petitioner has submitted explanation, however the same was not considered and passed the impugned demand notice dated 19-09-2024 (W.P.No.12325). Subsequent to the demand notice, the petitioner was served with another show cause notice dated 04-02-2025 alleging that the petitioner has sold silica and sold illegally without transit passes pointing out variation in the stock from the earlier inspection as 18,911 cum, and consequent proceedings of levying demand was issued. It is contended that the first show cause notice was issued 4. alleging that the books for procured raw minerals and processed mineral T- 3 has not been properly maintained and failure to file the returns of production and sales of the mineral and some other allegations of not maintaining the sign boards, etc,. However the demand notice was issued observing that the team of officers have conducted joint inspection and survey measured stocked sHica sand and the quantity of silica sand in MDL Unit account of the petitioner in the OMEPS portal, and found that there was variation in the stock and observed that the petitioner has dealt misusing the dispatch permits. Though the petitioner has submitted his reply to the show cause notice, the 3'^^ respondent did not consider the same and issued the demand notice. In the second show cause notice the allegation was again variation in stock and that the petitioner has transported silica and sand illegally without transit passes. The petitioner has submitted his reply to the show cause notice stating in OMEPS portal the name of the petitioner was blocked and the stock is lying as is where is basis and the inspection conducted on 11.1.2025 has reported that the petitioner is within the permitted quantity. The 3'^^ respondent by referring to the explanation of the petitioner raised demand of Rs.4,40,53,758/-. The learned counsel for the petitioner contends that against the 1®* show cause notice the petitioner has submitted its reply, however, did not consider the same, to the second show cause notice also the petitioner 5. has submitted his reply although the same was referred yet the respondent / 4 did not consider the same and contends that both the orders are without any reasons. 6. Perused the record. The 1®‘ show alleging non-maintenance of books and failure to file prescribed. However, the final order cause notice was issued returns in the format was passed, raising demand and stating that there was a variation in the stocks. Within a short time, another notice was issued once again alleging variation i the stocks physically found on the ground and the quantity of stock available in the MDL unit in account in the OMEPS Portal. The explanation submitted by the petitioner was not considered, as it was considered unsatisfactory. Having regard the above, this court deems it appropriate to set aside the orders i in both the writ petitions, remand the same for consideration afresh. to impugned 7. The impugned proceedings dated 19-9-2024 and 19-03-2025 are set aside and the matters are remitted to the respondent for passing comprehensive orders in terms of both the Show Cause Notices, dated 22.08.2024 and 04.02.2025, after considering objections of the petitioners by providing sufficient opportunity of hearing, within a period of six (06) weeks from the date of receipt of this order. 8. With the above observation, the Writ Petitions are disposed of. There shall be no order as to costs. 5 As a sequel, all pending miscellaneous applications shall stand closed. Sd/-SHAIK MOHD RAFi ASSISTANT REGISTRAR //TRUE COPY// /?/ SECTION OFFICER To, 1. The Principal Secretary (Mines) Industries and Commerce Department, State of Andhra Pradesh, Secretariat Buildings Velagapudi, Amaravathi Andhra Pradesh 2. The Director of Mines and Geology, Ibrahimpatnam, Vijayawada, NTR District, Andhra Pradesh 3. The Divisional Mines and Geology Officer, Gudur, Tirupathi District 4. The Assistant Director of Mines and Geology, SPSR Nellore District 5. The District Mines and Geology Officer, Tirupathi District 6. The District Mines and Geology Officer, SPSR Nellore District 7. OneCCto M/s CKR Associates Advocate [OPUC] 8. Two CCs to GP for Mines and Geology, High Court Of Andhra Pradesh. [OUT] 9. Three CD Copies GSC HIGH COURT DATED:09/05/2025 COMMON ORDER WP.Nos. 12183 of 2025 and 12325 of 2025 5 13 MAV 2(K!5 Current Section , to; DISPOSING THE WPS WITHOUT COSTS