Ultratech Cements Limited vs Union Of India & Ors.

Since common question of law and facts are involved in bunch of these writ petitions, they are heard analogously and are being disposed of by this common order.

The petitioners have filed the instant writ petitions under Article 226 of the Constitution of India challenging the letter dated 4-1-2021 bearing No. F6-36/2020-21 issued by the Additional Secretary, Department of Mineral Resources, Govt. of Chhattisgarh, Raipur, ie. respondent No.4 whereby the latter has rejected the representation submitted by the petitioner company requesting refund/adjustment of the amount by the petitioner company towards the payment of advance royalty against the amount paid by the petitioner company to the Income Tax Department ie, respondent No.3 in relation to the recovery of tax dues on behalf of the Mining Department ie., respondent No.7.

Case of the petitioners, in brief, is that the Petitioner Company, Ultratech Cement Limited/ Shree Cement Limited, a Company incorporated under the Company's Act 1956, is engaged in the business of manufacturing cement and clinker. Petitioner Company uses limestone which is required as raw-material in the process of manufacture of cement. In order to ensure uninterrupted supply of limestone as raw-material for continuous manufacturing activity of cement, Petitioner Company obtained a mining lease from the Government for extracting limestone as required under the provisions of Mineral Concession Rules 1960 referable to Mines & Minerals Regulations & Development Act, 1957. For extracting limestone, the petitioner Company is required to pay royalty to the respondent No.7, As per the mechanism established by the Respondent No.6 & 7, the Royalty is required to be paid in advance through online portal against allotted pit-passes, as per the notification dated. 30.06.2017. The Respondent No.7, i.e., Dy. Director (Mining & Admin), Mining Office, Raipur, in turn, allows the petitioner Company for mining operation on the basis of advance royalty payment. As per order dated 30-11-2018 passed by the Income Tax Department under Section 206C ( C) and (6) & (7) due to non collection of TCS on royalty payment. The Mining Department failed to deposit TCS amount without any reasonable cause, the Income Tax Department left with no other option to recovery the entire tax demand from their lease holders, therefore, notice under Section 226(3) was issued to the petitioners.

Learned counsel for respondents No.2 And 3/ Income Tax Department would submit that there are some dues which have to be recovered against the Mining Department of the State of Chhattisgarh, therefore, they have issued notice to the petitioners under Section 226 (3) of the Income Tax Act demanding amount as mentioned in the notice.

Learned counsel for the State would submit that the State has challenged the claim made by the Income Tax Department before this Court in a Tax Case No. 189 of 2025 (The Deputy Director (Geology and Mining) 1^st Floor, Collectorate Parisar, Kutcheri Chowk, Raipur CG vs. The Deputy Commissioner of Income Tax (Tds) Raipur, CG and other connected matters) preferred by the Mining Department wherein the tax case has been allowed by the Hon’ble Division Bench of this Court on 26-2-2026.

In view of the fact that since Tax cases preferred by the Mining Department has been allowed by the Division Bench of this Court wherein demand so raised against the Mining Department has already been quashed, it is directed that if any amount has already been recovered by the Income Tax Department against the petitioners, the same shall be returned back to the petitioners on furnishing the application by the individual petitioners.

With the aforesaid observation and direction, the bunch of these writ petitions are disposed of.