Royalty on slimes cannot be levied where the schedule covers only fines and concentrates, not waste residue.

Slime or slimes, as understood in mining trade and technical usage, is distinct from fines and concentrates under Entry 23 of the Second Schedule to the Mines and Minerals (Regulation and Development) Act, 1957. The material is treated as a residual waste product from crushing, screening, washing and beneficiation, unlike fines and concentrates, which are recognised commercial products. Royalty under Section 9(1) read with Entry 23 can be charged only on mineral categories expressly covered by the schedule, and slimes are not included. The impugned levy on slimes was therefore unsustainable, and relief was granted to the mining lessee.

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Issues: (i) Whether "slime" or "slimes", as understood in the mining industry and trade, is distinct from "fines" and "concentrates" under Entry 23 of the Second Schedule to the Mines and Minerals (Regulation and Development) Act, 1957; (ii) Whether "slime" or "slimes" can be included in "fines" or "concentrates" for the purpose of charging royalty under Section 9(1) of the Mines and Minerals (Regulation and Development) Act, 1957 read with Entry 23 of the Second Schedule.

Issue (i): Whether "slime" or "slimes", as understood in the mining industry and trade, is distinct from "fines" and "concentrates" under Entry 23 of the Second Schedule to the Mines and Minerals (Regulation and Development) Act, 1957

Analysis: The expression "slimes" was examined in its technical and commercial sense, having regard to its accepted meaning in mining practice. The material produced after crushing, screening, washing and beneficiation yielded lumps, fines and a residual waste product deposited in tailing ponds. That residual product was shown to be different in character from fines and concentrates, which are recognized commercial products capable of use or further processing, whereas slimes were treated as waste with no present commercial value.

Conclusion: "Slime" or "slimes" is distinct from "fines" and "concentrates" under Entry 23.

Issue (ii): Whether "slime" or "slimes" can be included in "fines" or "concentrates" for the purpose of charging royalty under Section 9(1) of the Mines and Minerals (Regulation and Development) Act, 1957 read with Entry 23 of the Second Schedule

Analysis: Section 9 provides the charging mechanism, but the rate and basis of quantification are supplied by the Second Schedule. Entry 23 expressly prescribes royalty for iron ore by reference to lumps, fines and concentrates, but not slimes. The scheme of the provision shows a deliberate legislative choice to leave out the waste residue generated after beneficiation. The later rules dealing with processing and tailings reinforced that tailings or rejects removed for dumping and not for sale or consumption are not ordinarily chargeable to royalty.

Conclusion: "Slime" or "slimes" cannot be included in "fines" or "concentrates" for charging royalty under Section 9(1) read with Entry 23.

Final Conclusion: The impugned levy on slimes was unsustainable and the appeals succeeded, resulting in relief to the mining lessee against royalty on slimes.

Ratio Decidendi: Where a charging provision for royalty must be read with the relevant tariff or schedule entry, royalty can be levied only on the mineral categories expressly covered by the schedule and not on a distinct waste product left out by the legislative scheme, as understood in trade and technical usage.

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