6.5.1 Non/short levy of royalty
Section 9 of the MMDR Act, 1957 stipulates that the holder of a mining lease shall pay royalty in respect of the mineral removed or consumed by him from the leased area at the rate specified in the Second Schedule in respect of that mineral. The Royalty rates of iron ore were on tonnage basis till 12.09.2009 and 10 per cent ad valorem on the sale prices published by Indian Bureau of Mines (IBM) thereafter.
18.104.22.168 We scrutinised the annual assessment records of a lessee in the office of Senior Geologist, Bellary in November 2012. We found that the Geologist had inspected the mine on 28 April 2008 and had certified that the production and despatches of iron ore in respect of that mine were nil. Thereafter Sr. Geologist finalised the assessment of the mine on 30 April 2008 and issued an Audit Report showing production and despatch as nil. A copy of the same was sent to the lessee.
In July 2010, the lessee intimated the Director, Department of Mines and Geology (DMG), claiming to have made a production of 1.01 lakh MT of iron ore during 2007-08 out of which 21,600 MT was despatched.
The Director directed the Senior Geologist, Bellary to revise the audit reports for the year 2007-08 and levy royalty accordingly.
However, no action has been taken to revise the audit report and collect royalty leviable @ ` 19 per MT which works out to ` 9.44 lakh, including interest. Besides the claim of the lessee had to be investigated in view of the inspection conducted by the Geologist where nil production was reported.
This was pointed out to the Department in December 2012 and reported to the Government in July 2013. Their replies have not been received (December 2013).
22.214.171.124 We scrutinised, in February 2011, the annual assessment records of a lessee in the office of Deputy Director, Hospet. We found that the lessee had declared the despatch of a quantity of 16,155 MT of sub grade iron ore in their production and despatch statement filed for the year 2008-09. Though this was taken in the annual assessment report for the year, the same was omitted to be assessed for royalty. The non levy royalty works out to ` 2.16 lakh, including interest. This was pointed out to the Department in February 2011 and reported to the Government in July 2013. Their replies have not been received (December 2013).