TaxTMI 
TaxTMI 
2009 (12) TMI 977
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....mount becomes due) for paying the dues without interest under Rule 61 of the said Rules. 3. The respondents entered into an `Excess Royalty Collection Contract' with the State of Rajasthan, agreeing to pay a fixed amount of Rs. 36.52 crores per annum in consideration of the State granting them a contract to collect from mining lease holders excavating and removing marble from the mines of such leaseholders, excess royalty on marble, in regard to the mining leases within the revenue boundaries of Tehsil Rajsamand, Kumbhalgarh, Amet and Railmangra of Distt. Rajsamand, during the period 19.7.2003 to 31.3.2005. The contract required the contractor to pay the annual fixed amount in instalments, that is, the first instalment on or before t....
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.... contract which commenced on 19.7.2003, if the instalment was due in terms of the agreement on 29.7.2003 (that is 10th day of the month commencing from 19.7.2003), the contractor who commits default cannot be charged interest if the payment was made on or before 13.8.2003 and that interest could be charged on delayed payments only from 14.8.2003. The said judgment is challenged in this appeal by special leave. The appellants contended that only the first ten days of the contract month were interest free, and the contractor was not entitled to any further interest free period of 15 days. 5. A reference to the relevant Rules is necessary to consider the tenability of appellant's contention. Rule 3(xiii-a) defines `Excess Royalty Collec....
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....tenders. Rule 34 (g)(iii) and Rule 35 (g)(iii) provide that where the oral bid/tender exceeds Rs. 10 lakhs it shall be recovered in 12 monthly instalments and the first instalment shall be deposited before the execution of the agreement and the remaining amount shall be deposited in 11 equal monthly instalments by the 10th of each month in advance. Rule 37(2) provides where the bid/tender for Royalty Collection Contract/Excess Royalty Collection Contract has been accepted by the competent authority the bidder/tenderer shall execute an agreement in Form No.10 within a period of one month from the date of the order accepting the bid/tender and that the terms and conditions included in the notification issued under Rule 34 or 35 shall be treat....
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....there is a specific mention of `Royalty Collection Contract Amount' in Rule 61, but not `Excess Royalty Collection Contract'. Therefore, it is contended that the 15 days grace period mentioned in Rule 61, will be inapplicable to amounts due in regard to Excess Royalty Collection Contract. 7. On the other hand the respondents submit that Rules 34 (g)(iii), 35(g)(iii) and 37(2) deal with both Royalty Collection Contracts and Excess Royalty Collection Contracts together, treating them in an identical manner. Even Form No.10 is common and identical for agreements for collection of royalty and excess royalty. It is contended that Rule 61 is a general provision relating to interest in regard to all amounts due under the Rules and is th....
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.... equated with a Royalty Collection Contract. Rule 61 clearly sets out the nature of dues in regard to which it will apply. It specifically refers to dues in regard to "dead rent, royalty, quarry licence fee and royalty collection contract amounts". `Excess Royalty Collection Contract Amount' is neither a dead rent, nor royalty nor quarry licence fee nor a royalty collection contract amount. `Royalty Collection Contract' was a concept that was conceived and contemplated in the Rules as originally framed. On the other hand, `Excess Royalty Collection Contract' was a new concept introduced by amendment dated 12.8.1994 by inserting a new definition under clause (xiii-a) of Rule 3. After the said amendment in 1994 introducing the con....