CEMENT CORPORATION OF INDIA Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) THE question raised in this petition is whether the respondent No. 1 State of Himachal Pradesh is competent to levy sales tax on the royalty payable by the Petitioner, a lessee, for the extraction of the mineral, i.e., lime stone in this case under the Himachal Pradesh General Sales Tax Act?

(2.) IN order to appreciate the controversy, relevant facts may be noticed:

(3.) THE case of the petitioner is that the mining operation in the land to extract the mineral and to appropriate the same is a right to enjoy immovable property under the Transfer of Property Act and, therefore, the State Government has no jurisdiction to levy, charge or collect the sales tax under the Himachal Pradesh General Sales Tax Act.