Gujarat Mining Rules | Locking Of Online ATR Account / Suspension Of Transit Permit Must Be Supported By Reasons In Writing: High Court

The Single Judge Bench was hearing a petition seeking immediate opening of the online ATR account of the Petitioner and the quashing of the show cause notice issued in March 2020 and May 2022 by the Government authorities on alleged 'non-application of mind.'

The Petitioner herein had obtained quarry permits for ordinary sand since 2010 and had been carrying on his business since then. He had also applied for a lease which was granted and executed in 2018. It was averred that the Petitioner was issued a show cause notice in 2020 for excess mining. Subsequently, his Online Delivery Challan Account Code was locked. He responded to the show cause notice and yet the Respondent authorities did not restore the account. The Petitioner was again issued a show cause notice for less mining in May 2022 alleging that the Petitioner had misused the royalty passes. Despite the Petitioner's reminders for opening the Code, no action was taken and hence, the Petitioner filed the instant petition.

The Petitioner clarified due to the increase of sand during floods, less mining was done. While referring to Rule 5(4) of the Gujarat Mining Rules 2017, the Petitioner averred that he was not served any show cause notice before suspending his transit permit and no order was passed in writing for the same.

Per contra, the AGP opposed petition on the ground that the Petitioner had been involved in illegal activities and excess mining which was found out during an inspection.

The Single Judge Bench primarily observed:

"Thus, simultaneously two actions are taken by the respondent authority on the very same day, first issuing of show cause notice and the second locking of the ATR account of the petitioner. It is specific case of the petitioner that such action is de hors of provisions of sub-rule (4) of Rule 5 of the Rules, 2017."

Reliance was placed on the decision of the Coordinate Bench in SCA No. 13550 of 2020 to note that in a case where the Petitioner was not issued any order in writing for the suspension of the transit permit, the Coordinate Bench had ordered the opening of the Online account. In the instant petition, as well the Petitioner's account was locked without a proper show cause notice. In the previous SCA, the High Court had laid down three conditions for suspending the online account:

1. Order for suspending permit to be issued in writing with reasons.
2. There had to be an order by the Authorised Officer levying dues or penalties from the holder whose account was suspended.
3. The dues or penalties are outstanding.

Concluding that these criteria were unmet in the instant case, the High Court allowed the writ petition.

Case Title: DHANRAJSINH GAMBHIRSINH THAKORE v/s STATE OF GUJARAT

Case No.: C/SCA/10614/2022

Citation: 2022 LiveLaw (Guj) 264

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