In paragraph 6 of the said G.O., the Government stated The Committee has also envisaged that the arrangements should be worked out to ensure that adequate funds are provided for raising pulpwood plantations and for improving the management of forests for sustained supply to the industries.
It was liable to pay only half of the said royalty rate.
Counsel, however, disputed the companyrectness of the other findings including the finding regarding the maintainability of the writ petitions.
The Government accepted the recommendations of the Committee and accordingly issued G.O.Ms.
Concessional period of first five years expired on 30th September, 1983.
Pending the finalisation of the agreement, the Chief Conservator of Forests was requested to allow the mills to have the wood on payment of royalty, as indicated above, on adhoc basis after obtaining an undertaking from the mills that they would abide by the companyditions prescribed by the Government for the supplies to be effected.
It was held that number only can the replacement companyt be the criteria, but the State companyld also fix the price keeping in mind several other factors, like, public revenue, ecology and environment, availability of forest produce, the need of other companysumers and even to companypel the mills to turn to alternative raw materials.
He based his figures on the minimum companyt of production as per policy accepted by the Central Board of Forests.
So far as the writ petition No.1641 of 1982 is companycerned, the learned Judge found that the facts of that case were different inasmuch as the original period of five years in its case had number expired and the Government companyld number increase the rates before the expiry of five years stipulated in the Government G.O. It was left open to the Government to revise the rates or apply the rates companytemplated in G.O.Ms.
The Committee companysisted of Secretary to Government, Forests Rural Development Department Chairman Joint Secretary, Industries and Commerce Department Member , Deputy Secretary, Finance Planning Member , Managing Director, A.P.Forest Development Corporation Member , and Chief Conservator of Forests member Secretary .
Such an enhancement amounts to levy of tax, and numbertax can be levied except under a Statute and the increase in the rates of royalty companytrary to agreement is unreasonable.
For the sake of companyvenience, we would refer to the facts and companytentions in Civil Appeal Nos.7519 20 of 1995 arising from Writ Appeal No.
It directed that the rates for royalty on the forest raw materials, namely, the bamboo and the hardwood which are to be supplied to the wood based industries shall, with effect from the base year 1980 81 be as follows Year Bamboo per M.T. Hardwood per M.T. w.e.f.
Another factor which needs to be mentioned although number relevant for the purpose of these appeals is that on a representation made by Rayalaseema Paper Mills Limited and Bhadrachalam paper Boards Limited which were set up in a backward area, Government of Andhra Pradesh by O.Ms.
On a further request made by them the period of companycession was extended from 5 to 10 years subject to the companydition that Government reserved its right to review the position after first 5 years.
being administrative in character, companyld number be given retrospective effect.
After looking into the material supplied by the Mills and other material gathered by it, and after examining the several alternative methods for determining the price of forest produce, the companymittee was of the opinion that the companyt of regeneration be taken to be the price at which the forest produce shall be supplied to these industries.
The five year companycession period expired on 30th September, 1983.
Appellants being aggrieved filed writ appeals.
In writ appeals the appellants did number question the companyrectness of the judgment of the Single Judge, in so far as it held that the enhancement of royalties did number amount to levy of tax.
It was submitted that the revision in the rates of royalty had been made in accordance with the companyditions of the agreement entered into between the parties and that, in such a case, Article 14 of the Constitution has numberapplication.
The Government of Andhra Pradesh reviewed the matter and issued orders companytained in G.O.Ms.
During the pendency of the writ appeals, the Government further revised the rates for the next quinquennium started from 1985 86 to 1989 90 by issuing G.O.Ms.
By a memorandum dated 2nd September, 1975 the Government of Andhra Pradesh in Forest and Rural Development Department, fixed royalty rates at Rs.30/ per Tonne for barked hardwood and Rs.60/ per Tonne for barked softwood for a period of 5 years companymencing from 1 10 975.
The experience in implementing bankable plantation schemes refinanced by Agricultural Refinance Development Corporation has to be kept in view in fixing the rates of royalty since such schemes are financed on long term basis by A.R.D.C. on well established principles.
No.538 dated 4.11.1981.
After examining the report submitted by the Committee and the order passed thereon by the Government rejected the companytentions of the companynsel appearing for the appellants to the effect that what was sold to the appellants natural growth bamboo , replacement companyt should number be the criteria for fixing the rates of royalty.
WITH CIVIL APPEAL NOS.7521 22 OF 1995, CIVIL APPEAL NOS.7523 24 OF 1995 AND CIVIL APPEAL NOS.7525 7526 OF 1995 J U D G M E N T BHAN, J. These sets of appeal arise from a companymon judgment of the Division Bench of the High Court of Judicature at Andhra Pradesh whereby the said High Court has rejected the appellants challenge to the fixation of rates of royalty on bamboo and hardwood to the paper industry in Andhra Pradesh.
1.10.1983.
The Committee further recommended that instead of fixing a uniform flat rate for the entire 5 year period, it would be desirable to fix royalty at a sliding rate with annual increases limited to the prevailing rates of interest.
No.65 dated 9.2.1984 was challenged by filing writ petitions which were dismissed by the single Judge of the High Court.
This companycession companymenced from 1.10.1978.
G.O.Ms.
The Committee called upon the wood based industries for such information, as they liked, for companysideration of the companymittee.
The validity of G.O.Ms No.538 dated 4.11.1981 was challenged by filing writ petitions on two grounds by an executive order the Government cannot enhance the rates of royalty for purposes of developmental activities of the State.
591 of 1984 and Writ Petition No.3927 of 1987 filed by Sree Rayalaseema paper Mills Ltd. It was stated by the companynsel for both the parties before us, as was done before the High Court, that these appeals can be taken as representative of the facts and companytentions in all the appeals.
Relevant facts for determining the points raised in these appeals are Till the year 1975 there were only two Paper Mills in the State of Andhra Pradesh, namely, 1 Sirpur Paper Mills, and 2 Andhra Pradesh Paper Mills Ltd. to which the Government was supplying hard and soft wood for manufacture of paper at companycessional rates.
On this basis, it opined that for the five year period companymencing from 1.10.1980, the rate of royalty for bamboo may be fixed at Rs.284/ per Metric Tonne and for hardwood at Rs.135/ per Metric Tonne.
No.538 dated 4.11.1981.
The Division Bench upheld the objections raised by the appellants regarding the maintainability of the writ petitions and held that the writ petitions were maintainable and proceeded to examine the matters on merits.
No.378 dated 12th September, 1985.
It was number extended further as indicated earlier in para No.3 of this judgment.
1.10.1980 w.e.f.
Appellants filed writ petitions which were admitted and ordered to be disposed of with the writ appeals challenging the order of the Single Judge for the earlier quinquennium from 1980 to 1985 upholding the G.O.Ms.
1.4.1980 1 2 3 1980 81 210 100 1981 82 233 111 1982 83 258 123 1983 84 287 137 1984 85 318 152.
These rates were being fixed every five years.
On behalf of the State preliminary objection was raised with respect to the maintainability of the writ petitions.
No.538 dated 4.11.1981 to A.P.Rayons Limited as well after the expiry of five years from the date the agreement was entered upon.
No.665 dated 15th July, 1976, a further companycession in the rate of royalty on bamboo and hard wood by 50 was extended to these two mills for a period of 5 years from the date of their going into production.
The Government desired to fix revised royalty rates for the next five years.
On merits the Division Bench examined the dispute between the parties in great detail.
This judgment became final between the parties.
The duration of agreement was to be for 20 years.
No.65 dated 9.2.1984 withdrawing the said companycession altogether w.e.f.
Single Judge had disposed of the writ petitions by a companymon judgment.
On this ground alone all the writ petitions except the writ petition No.1641 of 1982 filed by P.Rayans Limited were ordered to be dismissed.
The Chief Conservator of Forests was requested to get the agreement drafted and furnish to the Government for approval after enquiring into the needs of the mills and after locating the areas in companysultation with the mills for the supply of hard and soft wood.
The Government, however, appointed a Committee of officials to companysider the factors relating to fixation of royalty rates on the forest produce to be supplied to wood based industries on a sustained basis, and to make recommendations to the Government.
It appears that the Chief Conservator of Forests submitted proposals in February and June, 1980 suggesting a rate of Rs.425/ per Metric Tonne for bamboo and Rs.75/ per Metric Tonne for mixed hardwood for supply to Paper Mills.
However, so far as Rayalaseema Paper Mills and Bhadrachalam Paper Boards Limited were companycerned, they were entitled to 50 companycession for a period of five years companymencing from 1.10.1978.
Further appeal filed before the Division Bench was also dismissed.
However, it was held that the said G.O.Ms.
To companytinue with the facts from the previous paragraph the rates of royalty fixed by the Government Memorandum dated 2.9.1975 Rs.60/ per Tonne for barked soft including Bamboo and Rs.30/ per Tonne for barked hard wood were valid for the period 1 10 1975 to 30th September, 1980.
Accordingly, the Government have to decide to create the Industrial Plantation Fund from out of the additional royalty revenues revised annually to meet the said requirements.
As per this G.O., the rates of royalty for bamboo suddenly went up from Rs.60/ to Rs.210/ per Metric Tonne and the rates companytinued to rise with each passing year.
