Hyderabad HC stays levy of cess on minerals in Andhra Pradesh, Telangana

HYDERABAD:In a setback to the Andhra Pradesh and Andhra Pradeshgovernments, the High Court on Wednesday stayed the levy and collection of cess under the provisions of the AP Mineral-Bearing Lands (Infrastructure) Cess Act, 2005 by both the state governments. Justice M Seetharama Murti passed this interim order on a batch of petitions filed by several mineral companies across both the states challenging the action of the state governments in levying and collecting the cess on the minerals extracted by them from their existing limestone mines. The companies urged the court to direct the governments to refund to them all the amounts collected towards the cess.

The petitioners’ counsels brought to the notice of the court that the Act 2005 had already been stayed by the Supreme Court. Therefore, the decision of AP and Telangana governments to collect cess from the mining companies was in violation of the order of the Supreme Court, they argued.