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2. Before adverting to the question as to whether the impugned proceedings suffer from any legal infirmities, it may be necessary to briefly notice the relevant facts leading to filing of this writ petition:

The petitioner-company, similar to that of the petitioners in other writ petitions - W.P. No. 6916 of 2002 and Batch disposed of by us relating to the levy of seigniorage fee and penalty thereon with regard to the material consumed, is a sub-contractor of M/s. Bharat Heavy Electricals Limited (BHEL). It was awarded the work, viz., "site levelling and gradation work" at Simhadri Thermal Power Project, Visakhapatnam on 4-1-1999 by BHEL.

4. We have already noticed while disposing of the other writ petitions - W.P. No. 6916 of 2002 and Batch, as to the details of the meeting that was held by the Director of Mines and Geology with the officials of the petitioner-company and other contractors along with the officials of NTPC and BHEL to discuss about the payment of seigniorage fee, and the procedures that were agreed upon for levy and collection of seigniorage fee. We have also noticed the details of the proceedings dated 10-2-2000 addressed by the Deputy Director of Mines and Geology, Visakhapatnam to BHEL for realization of seigniorage fee on filling material in pursuance of the agreement reached in the meeting held on 4-9-1999.

12. In the meanwhile, the petitioner-company filed W.P. No. 13629 of 2001 on 27-6-2001 inter alia contending that in spite of the specific directions from this Court, the Department failed to make any provisional assessment and, therefore, the inevitable conclusion is that the petitioner-company is not due any amount to the department. The petitioner-company accordingly prayed for issuance of a writ of Mandamus directing the department to refund the excess amount of Rs.21,61,900/- paid by the petitioner-company towards seigniorage fee and other mineral dues in relation to the contract work and further direct the BHEL (principal contractor) to pay the balance contract amount of Rs.2,70,30,000/- to the petitioner-company. This Court on 23-7-2001 passed an interim order directing the petitioner-company to furnish an irrevocable and unconditional bank guarantee in an amount of Rs.2,70,30,000/- (Rupees two crores seventy lakhs and thirty thousand only) drawn from any nationalized bank in favour of the Director of Mines and Geology, Government of Andhra Pradesh. The Director of Mines and Geology shall forthwith issue a Certificate to the BHEL to the effect that the petitioner has furnished such a Bank Guarantee, with a copy marked to the petitioner. On receipt of such Certificate from the Director of Mines and Geology, the BHEL shall release an amount of Rs.2,70,30,000/- (Rupees two crores seventy lakhs and thirty thousand only) or any lesser amount found by the BHEL to be due and payable to the petitioner in respect of the works executed by the petitioner under the STPP contract. Liberty was given to the department to determine the liability of the petitioner for payment of seigniorage fee, if any, in accordance with law and is also at liberty to pursue such measures as are available in and under law to realise such demands.