Cuttack, July 8: The issue of mine owners paying stamp duty to the state government for their mines at a time when their leases were pending renewal has been challenged in Odisha High Court.

A mine owner is allowed to continue mining while his request for renewal of a lease is pending with the government.

Central public sector units such as Steel Authority of India (SAIL), large miners such as Tata Steel and mining lobby body, Federation of Indian Mineral Industries, have filed petitions seeking the court’s intervention against it.

The division bench of Chief Justice C. Nagappan and Justice Indrajit Mahanty, before which more than 10 petitions challenging the Indian Stamp (Odisha Amendment) Act, 2013 were moved, posted them for analogous hearing tomorrow.

On May 21, the state government amended the stamp duty act, named the Indian Stamp (Odisha Amendment) Act, 2013. The new law said miners operating deemed extension mines had to pay stamp duty soon after the expiry of their lease, which should be equivalent of 15 per cent total royalty to be paid by the miner. The amount would be deducted at the time of execution of lease agreement. Similarly, if the renewal of the mine lease was rejected, the government would refund the amount. The petitions questioned the legal competency of the state government to amend the Stamp Act, 1899, and levy such a duty in the garb of stamp duty and challenged the order issued to the district collectors.

On July 3, the state government had instructed all district collectors not to allow operation of mines under deemed extension provision if they failed to deposit the required stamp duty by July 9.