Page 77 - GSTL_30th April 2020_Vol 35_Part 5

2020 ] RAJASTHAN STATE MINES & MINERALS LTD. v. COMMR. OF C. EX. & S.T., JAIPUR 563
invited for setting up lignite (mining) based thermal power project, at Barmer.
The Government of Rajasthan selected M/s. Raj West Power Limited (‘RWPL’
for short) for setting up a 1000 MW Thermal Power Plant. The Rajasthan Gov-
ernment also decided to allot lignite deposits at Kapurdi and Jalipa mines in
Barmer to RWPL. Pursuant to the grant of bid, an Implementation Agreement
(IA for short) was signed between Government of Rajasthan (GoR for short) and
RWPL on 29-5-2006 for implementation, operation and maintenance of lignite
based thermal power plant with associated facilities based on lignite available in
Barmer District.
3. As per the IA, a separate company was to be formed as a Joint Ven-
ture unit (JV for short) between the appellant and RWPL, for carrying out lignite
mining. The JV company was, therefore, formed by name and style of Barmer
Lignite Mining Co. Limited (BLMCL for short), with appellant holding 51% of
equity share and remaining 49% of stake was to be held by RWPL. As per the IA,
at clause 5.2, it was contained that GoR shall allot the land to the RWPL/JV com-
pany for mining operation. The GoR was also supposed to assist the JV company
(BLMCL) in procuring land, required for the project in accordance with Land
Acquisition Act and make available to the JV company. The IA further provided
in clause 6.22 that, if the Power Purchase Agreement (PPA for short), which was
entered into for a period of thirty years and was not extended, then the
RWPL/JV company would surrender the acquired land to the GoR against re-
turn of consideration paid at the time of acquiring the land under Land Acquisi-
tion Act, or retain the said land by paying the GoR, the differential between cur-
rent market price and amount already paid to the GoR. On such differential
amount being paid RWPL/JV company would be free to use the land or transfer
the land. The Ministry of Coal, Government of India allocated the Jalipa,
Kapurdi, Shivkar and Sachha Sauda lignite block at Barmer to the appellant by
letter dated 13-11-2006, which also mentioned that the lignite mining shall be
carried out by the appellant through the JV company, BLMCL, with participation
of the appellant. As per the IA between the appellant and RWPL all the invest-
ments required was to be made by RWPL, and all the payments required for the
acquisition of land for the project were also to be made by RWPL by depositing
the money in an escrow account, and the appellant would have no financial lia-
bility with the JV company, including for holding of 51% of equity share. As per
the IA, the employee(s) required for implementation of the mining project was to
be deputed by the appellant/RWPL to the JV company, BLMCL. For the purpose
of acquiring the land for the project, the GoR appointed a Land Acquisition Of-
ficer (LAO for short), who undertook the land acquisition proceeding along with
Collector, Barmer. The cost of purchase of land was distributed by LAO, by issu-
ing the cheque from the said escrow account, to the land owners. The following
amount was paid by the LAO during the period 2008 to 2012 as indicated herein.

Fin. year Amount deposited Amount deposited Total amount
for Kapurdi for Jalipa deposited
2008-09 45,00,00,000 - 45,00,00,000
2009-10 222,56,52,000 - 222,56,52,000
2010-11 69,24,772 468,25,54,750 468,94,79,522
2011-12 - 241,00,00,000 241,00,00,000
Total 268,25,76,772 709,25,54,750 977,51,31,522

GST LAW TIMES  30th April 2020  77