Jharkhand High Court
M/S Bharat Coking Coal Ltd vs The State Of Jharkhand on 21 August, 2025
Author: Sujit Narayan Prasad
Bench: Sujit Narayan Prasad
2025:JHHC:25037-DB
IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P.(C) No.4655 of 2024
-----
1.M/s Bharat Coking Coal Ltd., a company registered under the Companies Act, 1956 and a Government of India Undertaking, having its registered office at Koyla Bhawan, Koyla Nagar, PO Koyla Nagar, PS Saraidhela, District Dhanbad-826005, through its Head of the Department (Taxation), Virender Sharma, aged about 34 years, S/o Shri Vipin Sharma, R/o Qrt. No.3, Block-1, Koyla Nagar, PO Koyla Nagar, PS Saraidhela, District Dhanbad-826005. ...... Petitioner Versus
1. The State of Jharkhand, through the Secretary, Department of Revenue, Registration and Land Reforms, Commissioner, having its office at Project Building, PO Dhurwa, PS Dhurwa, District Ranchi,834004.
2. Deputy Commissioner, Dhanbad, having his office at Station Road, Pandey Mohalla, PO Dhanbad, PS Dhanbad, District Dhanbad-826001.
3. District Mining Officer, Dhanbad, Department of Mines and Geology, having his office at District Mining Office, Combined Building, PO Dhanbad, PS Dhanbad, District Dhanbad-826001.
4. Director (Mines), Department of Mines and Geology, having his office at Project Building , PO Dhurwa PS Dhurwa, District Ranchi-
834004. ... ... Respondents
-----
CORAM: HON'BLE MR. JUSTICE SUJIT NARAYAN PRASAD HON'BLE MR. JUSTICE ARUN KUMAR RAI
-------
For the Petitioners(s) : Mrs. Darshana Poddar Mishra, AAG-1 For the Respondent(s): AC to AG
------
st Order No.07/Dated: 21 August, 2025 [Per se, Sujit Narayan Prasad, J.]
1. The present writ petition has been filed under Article 226 of the Constitution of India seeking following relief(s):
For a direction upon the concerned Respondent to immediately refund the entire amount of covid cess, realized by the Respondent State from the Petitioner w.e.f. 05.07.2023, because such realization is wholly without jurisdiction and 1 2025:JHHC:25037-DB illegal in view of Section 3(4) of the Jharkhand Mineral Bearing Lands (Covid-19 Pandemic) Cess Ordinance, 2020 (Annexure-1), which was commenced and published in the Official Gazette dated 06.07.2020, which , provides that the "The levy of cess under this Ordinance shall be valid for three years from the date of the commencement of this Ordinance", so that the petitioner may refund the said amount to its Customers from whom it collected the covid cess after 05.07.2023.
2. The brief facts, as per pleadings made in the present writ petition are as follows:
The Petitioner is a Government of India Undertaking and is a Government Company within the meaning of Section 617 of the Companies Act, 1956 and is also registered under the provisions of the said Act, 1956 and all its directors are citizens of India and as such they are entitled to the protection of their legal and Constitutional rights. The Petitioner is a mining company, a 100% subsidiary of Coal India Limited, engaged in the mining and selling of coal in the State of Jharkhand.
Vide Notification dated 06.07.2020, published in the official gazette, the Respondent State enacted the Jharkhand 2 2025:JHHC:25037-DB Mineral Bearing Lands (Covid-19 Pandemic) Cess Ordinance, 2020 (hereinafter referred to as "the Ordinance"), with an object to levy of cess on mineral bearing land for the rehabilitation/employment of labourers/migrant labourers, creating infrastructure in the field of cottage/village industries, MSME, creating employment opportunities, migrating the hardships caused due to loss of jobs, augmenting the existing health infrastructure in the State of Jharkhand arising out of disaster by way of Covid-19 Pandemic.
Section 3 of the above Ordinance provides for levy and collection of cess on mineral bearing land and Section 3(4) of the same provides as under;
"(4) "The levy of cess under this Ordinance shall be valid for three years from the date of the commencement of this Ordinance"
Subsequently, in exercise of the powers conferred by Section 11 of the said Ordinance, the State of Jharkhand vide Notification dated 11.09.2020, also made a Rule namely "The Jharkhand Mineral Bearing Lands (COVID-19 Pandemic) Cess Rules, 2020" (hereinafter referred to as the Rules 2020).
3
2025:JHHC:25037-DB In view of the aforesaid Ordinance (Annexure-1), the Petitioner started collecting covid cess from its customer on sale of coal and depositing the same with the Respondent State, without any complaint and or default, whatsoever.
As per Section 3(4) of the Ordinance, the aforesaid Ordinance lost its force w.e.f. 05.07.2023 and, therefore, the Petitioner vide e-mail dated 18.08.2023 sought clarification from the Respondent No. 3 as to whether the Ordinance (Annexure-1) has been enacted for 3 years only or any extension notification has been published for extension of payment of covid cess, but no clarification in this regard has been given to the Petitioner.
Subsequently, one of the customers of the Petitioner namely M/s NTPC Limited, Barh wrote a letter dated 09.09.2023 to the Petitioner, requesting therein not to impose the covid cess in the coal invoices and refund the total covid cess paid by it to the Petitioner on or after 06.07.2023.
Thereafter, the Petitioner again vide e-mail dated 06.10.2023 requested the Respondent No. 3 and 4 to clarify as to whether the above Ordinance has been enacted for 3 years only or any extension notification has been published for extension of payment of covid cess. In the said e-mail, it 4 2025:JHHC:25037-DB has also been requested that if the covid cess is not payable, necessary instruction may be issued.
When no reply was given to the aforesaid e-mails, the Petitioner, vide e-mail dated 03.11.2023, once again requested the Respondent No. 4 to clarify as to whether the above Ordinance has been enacted for 3 years only or any extension notification has been published for extension of payment of covid cess. In the said e-mail, it has also been requested that if the covid cess is not payable, necessary instruction may be issued.
Thereafter, the Petitioner, vide Letter dated 04.11.2023, requested the Respondent No. 3 to clarify the status of applicability of the covid cess under the Ordinance.
When no reply/clarification was received by the Petitioner from the Respondent No. 3, the Petitioner, vide Letter dated 08.11.2023, requested the Respondent No. 2 to issue necessary instruction to the appropriate authorities for clarification about the applicability of Covid cess under the above ordinance.
After sending so many emails and letters, the Respondent No. 3 vide Letter dated 11.11.2023 requested the 5 2025:JHHC:25037-DB Respondent No. 4 to clarify on the status of applicability of Covid cess.
Even thereafter, no information/clarification with regard to applicability of Covid Cess under the Ordinance w.e.f. from 05.07.2023 has been given to the Petitioner and therefore, the Petitioner was constrained to raise the matter before the Respondent No. 1 vide Letter dated 27.02.2024, but all the exercise made by the Petitioner in this regard yield no result and the Respondent State is still sitting tight over the matter since long and illegally and in violation of Article 265 of the Constitution, realizing the Covid Cess from the Petitioner without authority of law even after 05.07.2023.
The Respondent State had enacted the Ordinance, 2020 (Annexure-1), with an object to levy of cess on mineral bearing land for the rehabilitation/employment of labourers/migrant labourers, creating infrastructure in the field of cottage/village industries, MSME, creating employment opportunities, migrating the hardships caused due to loss of jobs, augmenting the existing health infrastructure in the State of Jharkhand arising out of disaster by way of Covid-19 Pandemic.
6
2025:JHHC:25037-DB Section 3(4) of the said Ordinance specifically prescribes that "The levy of cess under this Ordinance shall be valid for three years from the date of the commencement of this Ordinance", and therefore 05.07.2023 i.e. after three years from the date of issuance of on above Ordinance i.e. on 06.07.2020, the said Ordinance has lost its force and any realization of Covid Cess after 05.07.2023 from the petitioner is illegal, arbitrary, beyond the authority of law and is hit by Article 265 of the Constitution of India.
The Respondent State is immediately required to refund the amount, realized by it from the Petitioner on account of Covid Cess, after 05.07.2023, as the same has been collected in violation of Article 265 of the Constitution of India in order to enable the Petitioner to refund the said amount to its customers, from whom the Petitioner had collected the covid cess.
The Respondent No. 3 vide its Letter dated 11.11.2023 (Annexure-9), himself admitted this fact that as per Section 3(4) of the Ordinance, the collection of Cess shall be for three years only from the date of publication of Notification of Ordinance, but despite the same, is realizing the Covid Cess from the Petitioner, even after 05.07.2023. 7
2025:JHHC:25037-DB One of the Customers of the Petitioner namely M/s NTPC, Barh, vide Letter dated 09.09.2020 (Annexure-4), made an objection before the Petitioner to the effect that Cess is not imposable after 05.07.2023 and requested the Petitioner not to impose Covid Cess in the coal invoices and to refund the total Covid cess paid by M/s NTPC on or after 06.07.2023.
That the Petitioner vide several letters including Letter dated 08.11.2023 (Annexure-8) as well as the e-mails dated 03.11.2023 (Annexure-6) and 06.10.2023 (Annexure-5) repeatedly requested the Respondent No. 3 to clarify as to whether the Ordinance was enacted for 3 years only or any extension notification has been published for extension of payment of covid cess, but no clarification has been given to the Petitioner in this regard.
Due to non-clarification of the above issue by the Respondent No. 3, the Petitioner has been collecting the Covid Cess from its customers and depositing the same with Respondent State even after 05.07.2023.
Petitioner vide Letter dated 27.02.2024 (Annexure-10), also apprised the entire facts to the Respondent No. 1 with a request to issue necessary direction to the concerned 8 2025:JHHC:25037-DB Authority to clarify the issue, but till date no action in this regard has been taken by the Respondent No. 1.
3. It is evident from the factual aspect that the State of Jharkhand has come up with an Ordinance on 6.7.2020 in the name and style of the Jharkhand Mineral Bearing Lands (Covid-19 Pandemic) Cess Ordinance, 2020 (Jharkhand Ordinance No. 01,2020). The purpose of such ordinance has been shown in the notification dated 6.7.2020, the Ordinance is appended as Annexure-1 to the writ petition.
4. The State Government has thought it necessary to take immediate action to promulgate the Ordinance to provide the levy or cess on mineral bearing lands for the rehabilitation/employment of labourers/migrant labourers creating infrastructure in the field of cottage/village industries, MSME, creating employment opportunities mitigating the hardships caused due to loss of jobs, augmenting the existing health infrastructure in the State of Jharkhand arising out of the disaster by way of Covid-19 pandemic. Therefore, the State in exercise of powers conferred under clause-1 of Article 213 of the Constitution of India has promulgated the said Ordinance.
5. The case of the writ petitioner is that being a bona fide mines operator and citizen of the country without raising any 9 2025:JHHC:25037-DB grievance and considering the situation that the country was facing the disaster which was global in nature due to Covid-19 pandemic, have started making payment in pursuance of the said Ordinance. The Ordinance contains a provision under clause-3 thereof which provides collection of levy of cess on minerals bearing lands.
6. The grievance of the petitioner is that the levy of cess under this Ordinance has been made valid for three years from the date of commencement of this Ordinance, however, the government has been left with an option for its extension for further period of one year. The Ordinance subsequently has taken the shape of the statute as Jharkhand Mineral Bearing Lands (Covid -19 Pandemic) Act, 2020 which has been enacted in exercise of power conferred under Article 348(3) of the Constitution of India. The petitioner was depositing the cess even after lapse of the period of three years. It has been contended that the said amount has been paid regularly and only after interim order dated 11.7.2025 has been passed by a coordinate Bench of this Court in WP(C) No. 697 of 2025, the petitioner stopped depositing the said amount. Therefore, the amount which has been collected, beyond the period of three years, has been claimed to be without any authority of law and, 10 2025:JHHC:25037-DB hence, according to the writ petitioner it is to be refunded. The authorities have been approached by filing representations for refund of the said amount but no action has been taken, therefore, the present writ petition has been filed.
7. The learned counsel appearing for the petitioner has submitted that whatever amount has been collected/deposited by the petitioner is to be refunded in favour of the petitioner and not refunding of the said amount deposited beyond the period of three years is nothing but without any authority of law.
8. Counter-affidavit has been filed on behalf of the State wherein the fact about the deposits so made beyond the period of three years has not been disputed, save and except, the statement made in paragraph no.15 that the details of the payment made by the petitioner in the years 2021-2022, 2022- 2023 and 2023-2024 are not reflected in the JIIMS Portal. The petitioner has to provide the details of payment made by him and explain the way by which payment has been done. It has also been stated therein that the Rule 8(3) of the Jharkhand Mineral Bearing Lands (Covid-19 Pandemic) Cess Rules, 2020, the cess shall be paid electronically through the JIIMS Portal. 11
2025:JHHC:25037-DB
9. The learned counsel for the State-respondent has submitted that in absence of the said details, the decision of refund could not have been taken. The another statement has been made that the petitioner may approach the alternative remedy, as provided under Rule 6 of the Rules 2020.
10. We have heard the learned counsel for the parties and gone through the pleadings made in the counter-affidavit. The present writ petition has been filed invoking the extraordinary power conferred to this Court under Article 226 of the Constitution of India for direction upon the respondent particularly respondent nos.3 and 4 to refund the amount which has been deposited by the petitioner in pursuance of the Ordinance in the name and style of the Jharkhand Mineral Bearing Lands (Covid-19 Pandemic) Cess Ordinance, 2020 (Jharkhand Ordinance No. 01, 2020) subsequently taken the shape of Act, 2020.
11. We have gone through the Ordinance and also the Act, 2020 and found from its preamble that to handle the situation which emerged due to Covid-19 pandemic, the following objects have been made:
12
2025:JHHC:25037-DB
4. Purpose and objectives of this Ordinance-
The proceeds of the fund so collected shall be appropriated into a separate account, which shall be used for the following purposes:-
(1) to mitigate the impact of disaster and epidemic; (2) to provide the rehabilitation/employment to labourers;
(3) to create all such infrastructures in the field of Cottage/village Industries, MSME generating employment and mitigating the hardships caused due to loss of jobs due to the pandemic.
(4) to augment the existing health infrastructures; (5) to establish the community shelters /dormitories /kitchens/ food securities etc. (6) to meet the expenses for transporting the migrating labourers;
(7) to provide support/compensate all such persons/families who have lost their lives, on account of this epidemic and or during their movement from other states into the state; (8) to provide all such necessary help/logistic support for proper cultivation to the Agriculturist; 13
2025:JHHC:25037-DB (9) to provide necessary logistic support for marketability of Agriculture produces;
(10) to provide all necessary assistance/ support to all such labourers, casual/ migrant labourers, persons, who suffered loss of employment or suffered pecuniary losses curing this epidemic or and for all such other purposes as the Government may specify, from time to time in the state.
12. The relevant for the purpose of present case is section 3 wherein the provision has been made for collection of levy, for the ready reference the same is being referred herein under:
3. Levy and collection of cess on mineral bearing land-
(i) Subject to any limitation imposed by Parliament by law relating to mineral development, there shall be levied and collected, in such manner as may be prescribed, a COVID-19 cess on mineral bearing land in respect of such mineral and at such rates, not exceeding rupees on hundred per tone/cubic meters, as the case may be, on dispatch of such Run-of-mine/mineral, as may e specified in the Schedule appended to this Ordinance, by the State Government from time to time.
14
2025:JHHC:25037-DB (2) The cess levied under sub-section (1) shall be payable by the holder on dispatch of Run-of-mine/mineral in such manner as may be prescribed.
(3) The proceeds of the cess shall be credited into the Fund to be known as COVID-19 PANDEMIC FUND. (4) The Levy of cess under this Ordinance shall be valid for three years from the date of the commencement of this Ordinance.
(5) Notwithstanding anything contained in sub-section (4) of this section, the State Government through a notification and for the reasons to be recorded and upon recommendation of the governing body, may extend the levy of cess under this Ordinance, for another one year and also for the succeeding year(s), (6) The manner and the procedures for managing the 'Fund", shall be specified or prescribed by the Government.
13. The amount in pursuance of section 3 of the Act, 2020 has regularly been deposited which has not been disputed by the State in its counter-affidavit, save and except that the details is not available in the JIIMS Portal but there is no denial that amount has not been deposited and the same also cannot be 15 2025:JHHC:25037-DB denied since it was statutorily required during the relevant period and if the amount could not have been deposited then the State would have taken action to penalize the petitioner.
14. The petitioner, although, has not given the details of the deposits so made but has placed the calculation of amount said to be deposited. Since the same has not been brought on record and, as such, the same is not being taken cognizance by this court rather the same is to be considered by the State.
15. The question of authority has been raised on behalf of the petitioner by citing reference of Article 265 of the Constitution of India. There is no dispute that the Article 265 of the Constitution of India provides that anybody cannot be saddled with the liability without any authority of law. Although cess is not coming under the category of tax but the same has also been decided to be collected under the strength of the statutory provision initially by the Ordinance and subsequently by the Act, 2020. Therefore, the cess has been deposited but as per the mandate of the Act, 2020 it was to be deposited only for the period of three years as provided under section 3(4) of the Act, 2020. It has been provided under sub-section 5 to section 3 of the Act, 2020 that the government may extend the period for further period of one year but the pleading has been made that 16 2025:JHHC:25037-DB there is no further extension, as such; the force of the Act, 2020 has lost its source on completion of the period of three years.
16. The contention has been raised on behalf of the petitioner that even after lapse of three years the amount has been deposited and, as such, the petitioner is entitled to get the said amount by way of refund which has not been redressed and, therefore, the present writ petition has been filed.
17. The question, therefore, before this court is that if the amount has been collected on the strength of the Act, 2020 beyond the period of three years, can the State be held entitled to keep the said amount without refunding the same in favour of the petitioner.
18. The answer of the court is in negative, since, the State can not act as a money lender rather the State is to act on the basis of the strength of the statutory provision. The State has also not come up with any stand in the counter affidavit that the extension of one year as provided under sub-section 5 of Section 3 has been made.
19. This court, in the light of the aforesaid facts has come to the conclusion that the amount deposited by the petitioner after three years in no circumstances the State is entitled to keep it, rather, the same is to be refunded.
17
2025:JHHC:25037-DB
20. Therefore, the writ petition is being allowed with a direction upon the respondent no.1, the Secretary, Department of Revenue, Registration and Land Reforms, Commissioner, Dhurwa, Ranchi to refund the said amount, subject to furnishing the details of the deposited amount supported by the valid documents in the JIIMS Portal which shall be submitted before the concerned authority within a period of three weeks from the date of receipt of copy of this order.
21. The respondent no.1 is directed to verify from its record and on being corroborated from the record of the petitioner, the admissible amount, as per deposit said to be made by the petitioner, shall be refunded in favour of the petitioner within the further period of eight weeks from the date of receipt of copy of the this order.
22. The question of determination shall be based upon the documents which shall be submitted by the petitioner in support of deposit of the said amount.
23. The writ petition stands disposed of.
(Sujit Narayan Prasad, J.) (Arun Kumar Rai, J.) KNR/ AFR 18