ULTRA TECH CEMENT LTD. versus STATE OF MAHARASHTRA & ANR.

ULTRA TECH CEMENT LTD. versus STATE OF MAHARASHTRA & ANR.

The appellant is not liable to pay Zilla Parishad Cess (ZP cess) or Gram Panchayat Cess (GP cess) under the lease deed, since statutory enactments exempt lessees from the State government from liability for these cesses; cesses are payable only if liability arises under the respective statutes, not merely under the lease contract.

Parties
Appellant: Ultra Tech Cement Ltd. (Earlier Ultratech Cemco Ltd.); Respondents: State of Maharashtra & Anr.
Jurisdiction
India
Judgment Date
27 September 2011
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 03.06.2003 of High Court of Judicature at Bombay, Nagpur Bench in Writ Petition No. 2922 of 1999
Outcome
Appeal allowed.
Legal Topics
Liability for Cess Under Lease Deed, Exemption Under Statutory Enactments, Interpretation of Contract Terms, Assessment and Payment of Local Cesses
Taxation Contract Mining Law Administrative Law Liability for Cess Under Lease Deed Exemption Under Statutory Enactments Interpretation of Contract Terms Assessment and Payment of Local Cesses

Case Brief

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Parties

Ultra Tech Cement Ltd. (Earlier Ultratech Cemco Ltd.)

Appellant

State of Maharashtra & Anr.

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 03.06.2003 of High Court of Judicature at Bombay, Nagpur Bench in Writ Petition No. 2922 of 1999

Legal Issues

  1. 1 Whether the appellant is liable to pay Zilla Parishad Cess (ZP cess)?
  2. 2 Whether the appellant is liable to pay Gram Panchayat Cess (GP cess)?

Ratio Decidendi

The appellant is not liable to pay Zilla Parishad Cess (ZP cess) or Gram Panchayat Cess (GP cess) under the lease deed, since statutory enactments exempt lessees from the State government from liability for these cesses; cesses are payable only if liability arises under the respective statutes, not merely under the lease contract.

Court Disposition

Appeal allowed.

Orders

  • Judgment of the High Court is set aside.
  • Writ petition filed before the High Court stands allowed.