Imported river sand cleared through customs cannot be blocked by State mining transport permit rules.

Imported river sand lawfully cleared through customs and supported by import documents was held outside the reach of Tamil Nadu's mining control rules. The Madras HC construed the Mines and Minerals (Development and Regulation) Act, 1957 and the State rule-making powers as regulating reconnaissance, prospecting, mining, storage and transport of minerals obtained in India, including illegally mined minerals, not imported sand. Rule 38-C of the Tamil Nadu Minor Mineral Concession Rules, 1959 was read as applying to sand quarried within the State, and the 2011 Rules as concerned with minerals subject to royalty or seigniorage. Accordingly, the State could not insist on registration, licence, transport permit or transit pass for the imported consignment.

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Issues: Whether the State authorities could insist on registration, licence, transport permit and transit pass under the Tamil Nadu Minor Mineral Concession Rules, 1959 and the Tamil Nadu Prevention of Illegal Mining, Transportation and Storage of Minerals and Mineral Dealers Rules, 2011 for transporting imported river sand within Tamil Nadu.

Analysis: The statutory scheme under the Mines and Minerals (Development and Regulation) Act, 1957 was held to be concerned with reconnaissance, prospecting, mining and regulation of minerals obtained within India, and the State rule-making powers under Sections 15 and 23-C were construed as enabling regulation of quarrying, storage and transport of illegally mined minerals, not imported sand lawfully cleared through customs. The restrictions in Rule 38-C of the Tamil Nadu Minor Mineral Concession Rules, 1959 were found applicable to sand quarried within the State and purchased from the Public Works Department or a licencee, while the 2011 Rules were read as dealing with minerals excluding sand and with transit of minerals subject to royalty or seigniorage, which had no application to importers. The Court held that once the imported consignment was supported by customs and import documents and cleared under the import policy, the State could not invoke the State mining rules to prevent its transport, stock or sale.

Conclusion: The insistence on registration, licence, transport permit and transit pass for imported river sand was unsustainable and the petitioner succeeded.

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