Cess on royalty and mineral rights tax was refundable once the levy's illegality applied to the relevant period.

Cess collected on royalty and mineral rights tax for the period ending 4-4-1991 could not be retained once the later Supreme Court position on the legality of that levy was applied. The levy and recovery were therefore unsustainable for the relevant period, and the petitioner was entitled to refund of any amount already collected. Relief was limited to refund, with no basis for continued recovery by the respondents.

---

---

Issues: Whether the respondents could recover cess on royalty and mineral rights tax for the period ending 4-4-1991, and whether the petitioner was entitled to refund of any amount so collected.

Analysis: The challenge to recovery of cess was considered in the light of the later Supreme Court decision which led the legality of such levy and recovery. Once that legal position was applied, the respondents could not retain or recover the cess for the relevant period. The relief was confined to refund of any amount already collected from the petitioner for that period.

Conclusion: The issue was answered in favour of the petitioner and the respondents were directed to refund the cess on royalty and mineral rights tax, if collected for the relevant period.

---