Facts of the Case

Eight petitioners, owners of stone-crusher units operating in Kollam and Thiruvananthapuram districts of Kerala, filed Writ Petition (C) No. 15537 of 2023 seeking a direction to the State to consider their representation and to set aside a Government circular (Ext.P1) to the extent it permitted import of granite (building stone) and its aggregates from other states by road.

The petitioners relied on Rule 107 of the Kerala Minor Mineral Concession Rules, 2015, which they argued implied that minor minerals could be imported into Kerala only by ship or rail, and that import by road was therefore impliedly prohibited.

They also argued there was no adequate mechanism at check-posts to detect or regulate illegal road-based import of minor minerals.

Additional respondents — Prime Sand and Aggregates, Mine Star Private Limited and KCB Transportation Private Limited — were impleaded, and produced their GST registration certificates and other documents (registration under Tamil Nadu mineral-transportation rules, purchase orders) to demonstrate their lawful trading activity.

The State's Senior Government Pleader relied on the Supreme Court's decision in State of Gujarat v. Jayeshbhai Kanjibhai Kalathiya [(2019) 16 SCC 513], which had struck down a similar state-level restriction on inter-state movement of sand.

Issues Involved

  1. Whether Rule 107 of the Kerala Minor Mineral Concession Rules, 2015 impliedly prohibited the import of minor minerals (granite and aggregates) into Kerala by road, permitting import only by ship or rail.
  2. Whether the absence of an effective check-post mechanism justified restricting road-based import.

Petitioner's Arguments

  • Rule 107 of the 2015 Rules, by referring only to import by ship or rail, should be read as implicitly prohibiting import of minor minerals by road.
  • Without an effective check-post mechanism to detect and regulate such imports, road-based import of minor minerals should not be permitted.

Respondent's Arguments

  • Rule 107 does not, on its plain language, indicate any prohibition on road-based import of minerals.
  • The issue was already settled by the Supreme Court in State of Gujarat v. Jayeshbhai Kanjibhai Kalathiya, which held that once a State permits minerals to be excavated, it cannot restrict their movement within India, nor is any such restriction constitutionally permissible; there is likewise no restriction on a State importing minerals from other States.

Court Order / Findings

  • The Court held that Rule 107 does not, on a plain reading, prohibit import of minerals through road.
  • Applying the Supreme Court's ruling in State of Gujarat v. Jayeshbhai Kanjibhai Kalathiya, the Court held that once excavation of minerals is permitted, the State cannot restrict their movement within Indian territory, and there is no bar on importing minerals from other States by any particular mode of transport.
  • The writ petition was accordingly dismissed, though the Court clarified that the petitioners remained free to bring any specific discrepancies or irregularities in check-post regulation to the notice of the respondents.

Important Clarification

This is a mining/minor-minerals regulation decision applying Supreme Court precedent on the free inter-state movement of minerals — GST played no role in the Court's reasoning. GST registration certificates were produced only by the impleaded transport/mining respondents as routine proof of their lawful business identity, not as part of the legal question decided.

Sections Involved

  • Kerala Minor Mineral Concession Rules, 2015 — Rule 107, the central provision interpreted by the Court.
  • Mines and Minerals (Development and Regulation) Act, 1957 — the parent statute governing minor minerals, relevant to the Supreme Court precedent applied.
  • Constitution of India, 1950 — Article 303 (freedom of inter-state trade), discussed via the cited Supreme Court judgment.

Decision – In Favour of

Decided against the petitioners (the crusher unit owners) — their writ petition seeking restriction of road-based mineral import was dismissed.

Case Details

  • Court: High Court of Kerala at Ernakulam
  • Case No.: WP(C) No. 15537 of 2023
  • Coram: Justice N. Nagaresh
  • Date of Order: 14 August 2023

Link to Download the Order

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