M/S. ULTRATECH CEMCO LTD. vs STATE OF MAHARASHTRA

The Supreme Court examined the applicability of ZP cess and GP cess under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961 and the Bombay Gram Panchayats Act, 1958, respectively. The Court held that the appellant, being exempt from land revenue under Section 64 of the Maharashtra Land Revenue Code, 1966, is not liable to pay GP cess as per Section 127(1) of the Panchayats Act. However, the demand for ZP cess is valid under Rule 27(1)(d) of the Mining Concession Rules, 1960, as it is part of the surface rent calculation, thus affirming the respondents' claim for ZP cess while exempting the appellant from GP cess.