End-use of excavated earth determines minor mineral status, so royalty and penalty were not attracted.

Ordinary earth excavated for foundation work and reused within the same thermal power project for refilling pits was not treated as a minor mineral under the 03.02.2000 notification, because the controlling test is its end use. The notification covers ordinary earth only when used for filling or levelling in embankments, roads, railways, buildings and similar purposes outside the excavation context. As the earth was not removed for commercial exploitation or a use contemplated by the notification, royalty and penalty under Section 48(7) of the Maharashtra Land Revenue Code, 1966 were not attracted and the impugned order was unsustainable.

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Issues: Whether ordinary earth excavated for laying foundations and reused for refilling the dug-up pits in the construction of a thermal power project could be treated as a minor mineral so as to attract royalty and penalty under Section 48(7) of the Maharashtra Land Revenue Code, 1966.

Analysis: Ordinary earth was brought within the definition of minor mineral by the Central Government notification dated 03.02.2000 issued under Section 3(e) of the Mines and Minerals (Development and Regulation) Act, 1957, but only when it is used for filling or levelling in construction of embankments, roads, railways, buildings and similar purposes. The excavated earth in the present case was not removed for commercial exploitation or for any use outside the construction process. It was dug out for laying foundations and was then redeployed in the same project for refilling the pits. The controlling principle is the end use of the excavated earth. Since the earth was not used in the manner contemplated by the notification, it did not fall within the statutory meaning of minor mineral.

Conclusion: The order imposing royalty and penalty was unsustainable, as the petitioner had not excavated a minor mineral without permission and Section 48(7) of the Maharashtra Land Revenue Code, 1966 was not attracted.

Final Conclusion: The writ petition succeeded and the impugned order was quashed.

Ratio Decidendi: Excavatated ordinary earth used within the same construction activity for foundation work and refilling does not answer the description of a minor mineral under the 2000 notification, and therefore cannot attract royalty or penalty under the revenue code provision for unauthorised excavation of minor minerals.

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