Mineral Area Development Authority Etc vs M/S Steel Authority Of India & Ors on 30 March, 2011
40. As per the decision of the 9 Member Bench seen above, there is
no case on merits for the appellants for not including the Royalty
component for arriving at the Assessable Value. But this judgement
also comes to the rescue of the appellant so far as the Cess issue is
concerned. Since Royalty has been held not to be „tax‟, the States are
competent to levy Cess, which is also a tax, as held in India Cements
Case cited supra. In the 9 Member judgement of MADA, there is
nothing to suggest that Cess is not a „Tax‟ and the entire decision is
confined to the issue as to whether „Royalty‟ is „tax or not‟ and as to
whether the State is eligible to impose Cess on Royalty. So far as
other cesses are concerned, there is nothing to suggest that they
have been litigated as not being „tax‟ by nature at any other forum.
No judicial pronouncement has been brought to our notice taking the
contrary view in respect of the cesses.