ORISSA CEMENT LTD AND ORS. ETC. ETC. vs STATE OF ORISSA AND ORS. ETC. ETC.

The Supreme Court upheld the constitutional validity of the cess levied by the States of Orissa, Bihar, and Madhya Pradesh based on mining royalties under the Orissa Cess Act, 1962, Bengal Cess Act, 1880, Madhya Pradesh Upkar Adhiniyam, 1981, and Madhya Pradesh Karadhan Adhiniyam, 1982. The Court ruled that the cess falls within the legislative competence of the State Legislatures as per Entries 45, 49, and 50 of the State List in the Seventh Schedule of the Constitution. However, the Court clarified that the refund of cess collected is not an automatic consequence of declaring the cess unconstitutional, emphasizing the need for judicial discretion in determining relief under Articles 142 and 246.