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EXPLAINER | Mineral Rights verdict hailed and panned at the same time
New Indian ExpressLook inward Let’s remember, the whole controversy stems from conflicting verdicts of two Constitution benches of the Supreme Court, necessitating a third larger bench to settle the divergence. On October 25, 1989, a seven-judge bench led by Sabyasachi Mukharji ruled that mineral royalty is tax, in the India Cement v. State of Tamil Nadu case. The bench said state legislatures lack the competence to impose taxes on mineral rights because the matter is covered by the Mines and Minerals Act, 1957 or MMDR Act. But on January 15, 2004, a five-judge bench led by R C Lahoti arrived at the opposite conclusion that royalty is not tax, in the State of West Bengal v. Kesoram Industries, and attributed the India Cement ruling by the larger bench to an inadvertent error. However, taking into consideration the lapse of more than three decades since the India Cement ruling and more than a decade since the matter was referred to a larger bench, the court decided that state governments will waive the interest accrued on the principal due till July 25 this year.
History of this topic
Efforts on to settle issue of recovery of royalty, tax dues with certain states: Centre to SC
Hindustan Times
Tamil Nadu’s limestone tax: A crushing blow to cement margins?
Live Mint
Tamil Nadu mineral-bearing land tax may have an adverse impact, say cement industries
The Hindu
Avenues for revenues: Tax, penalty on minerals to shore up treasury in Karnataka
New Indian Express
Himachal Pradesh HC Upholds Levy Of GST On Mining Royalty Payable Under Mining Concession Granted By State
Live Law
Supreme Court agrees to set up Bench to hear pleas of States on recovery of royalty, tax dues on minerals
The Hindu
Supreme court lets mineral-rich states out of resource curse
New Indian Express
Mining Tax: Supreme Court declines retrospective application of state tax and royalty on mines
The Hindu
States can collect past tax dues on mineral rights, Supreme Court rejects Centre's plea
Hindustan Times
Supreme Court To Clarify Tomorrow Whether Judgement Upholding Powers Of States To Tax Mineral Rights Be Given Only Prospective Effect
Live Law
SC to set conditions on retrospective mineral tax ruling to provide clarity
Hindustan Times
Explained: The Supreme Court verdict on states’ right to levy tax on minerals
Hindustan Times
Centre opposes Supreme Court plea for mineral royalty refund, cites ‘multipolar’ impact
Live Mint
SC reserves decision on whether its verdict upholding State’s right to tax mineral rights should apply only prospectively
The Hindu
SC upholds federalism in mining tax ruling
Hindustan Times
Allowing States To Tax Minerals Will Lead To Unhealthy Competition Among Them, Cause Price Rise : Justice Nagarathna In Dissent
Live Law
DC Edit | Minerals ruling boosts federalism
Deccan Chronicle
Editorial on SC judgment on taxing mining activities: Fiscal federalism
The Hindu‘Royalty is not tax’, says Supreme Court; frees States from Centre’s restrictions on taxing mining lands and quarries.
The Hindu
Setback to Centre as Supreme Court rules royalty on minerals is not tax
Hindustan Times
SC upholds right of States to impose taxes on mines, mineral-bearing lands
New Indian Express
Is Royalty On Mining Leases Tax? What Are States' Powers To Tax Mineral Rights? Supreme Court 9-Judge Bench Reserves Judgment
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