SC to set conditions on retrospective mineral tax ruling to provide clarity
7 months, 4 weeks ago

SC to set conditions on retrospective mineral tax ruling to provide clarity

Hindustan Times  

The Supreme Court on Wednesday indicated that it would lay down specific conditions regarding the retrospective applicability of its recent ruling, which affirmed the legislative competence of states to levy taxes on minerals and mineral-bearing land in addition to the royalty imposed by the Centre. In 1989, a seven-judge bench ruled in the India Cements case that the Centre held primary regulatory authority under the Mines and Minerals Act, 1957 and that states could collect royalties but not impose additional taxes or cess on mining and mineral development. The ruling also clarified that the states’ right to tax mineral-bearing land, which falls exclusively under state jurisdiction, remains outside the purview of Parliament’s power to limit states’ taxation authority on mineral rights. The majority ruling, by affirming states’ rights to levy taxes on mineral resources, empowered state governments to generate significant revenue from their natural resources. Given that the current Act does not limit states’ power to tax mineral rights, the Centre may consider revising the legislation to recalibrate the balance between state and central authority.

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History of this topic

Efforts on to settle issue of recovery of royalty, tax dues with certain states: Centre to SC
1 week, 3 days ago

Efforts on to settle issue of recovery of royalty, tax dues with certain states: Centre to SC

Hindustan Times  

New Delhi, The Centre on Thursday told the Supreme Court that it was making efforts to resolve the issue of recovery of royalty and tax dues on mineral rights and mineral-bearing lands between it and several mineral-rich states. Efforts on to settle issue of recovery of royalty, tax dues with certain states: Centre to SC The top court meanwhile deferred …

Tamil Nadu to net about ₹3,450 crore through Mineral Bearing Land Tax law
1 week, 6 days ago

Tamil Nadu to net about ₹3,450 crore through Mineral Bearing Land Tax law

The Hindu  

Tamil Nadu is expected to net about ₹3,450 crore during 2025-26 through the recently-notified Mineral Bearing Land Tax Act, which has been enacted following the Supreme Court’s judgment last year enabling States to levy tax on mines and minerals. In the light of the Supreme Court’s verdict last year, the government has framed the Mineral Bearing Land Tax Act, which …

Avenues for revenues: Tax, penalty on minerals to shore up treasury in Karnataka
3 months, 3 weeks ago

Avenues for revenues: Tax, penalty on minerals to shore up treasury in Karnataka

New Indian Express  

BENGALURU: The state government, that has allocated a whopping Rs 56,000 crore in the budget for the five guarantee schemes, has opened up new avenues to generate additional revenue by introducing a new tax on mineral bearing lands, in addition to royalty. The tax ranges from Rs 20 per tonne to Rs 100 for iron ore, including calibrated lump ore, …

Supreme Court agrees to set up Bench to hear pleas of States on recovery of royalty, tax dues on minerals
6 months, 2 weeks ago

Supreme Court agrees to set up Bench to hear pleas of States on recovery of royalty, tax dues on minerals

The Hindu  

The Supreme Court on Wednesday said it will set up a Bench to hear subsequent pleas of mineral-rich States like Jharkhand seeking to recover royalty and tax dues on mineral rights and mineral-bearing lands worth thousands of crore of rupees from the Centre and mining firms. In a subsequent order on August 14, the top court clarified that the judgement …

Odisha government to take apt decision on collecting tax from mineral-bearing land: Minister
6 months, 3 weeks ago

Odisha government to take apt decision on collecting tax from mineral-bearing land: Minister

New Indian Express  

BHUBANESWAR: The Odisha government on Tuesday said it will take rational steps in the best interest of the state so far as implementation of the Supreme Court judgment on powers of states to levy tax on mineral-bearing land is concerned. Replying to the demand for grants of Steel and Mines department in the Assembly, ministerBihuti Bhusan Jena said the then …

Supreme court lets mineral-rich states out of resource curse
7 months, 1 week ago

Supreme court lets mineral-rich states out of resource curse

New Indian Express  

The Supreme Court’s verdict in July allowing states to tax mineral rights and mineral-bearing land has brought in a sense of euphoria among the mineral-rich regions of India. The top court, which clearly defined the line between mineral royalty and tax, made the significant observation that the states’ right to impose taxes with their legislative domain must be secured from …

EXPLAINER | Mineral Rights verdict hailed and panned at the same time
7 months, 1 week ago

EXPLAINER | Mineral Rights verdict hailed and panned at the same time

New Indian Express  

Look 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 …

Mining Tax: Supreme Court declines retrospective application of state tax and royalty on mines
7 months, 2 weeks ago

Mining Tax: Supreme Court declines retrospective application of state tax and royalty on mines

The Hindu  

The Supreme Court on Wednesday declined pleas by assessees, including public sector undertakings, to restrict its July 25 majority judgment, which upheld States’ power to tax mines and minerals rights, to have only prospective effect. The Bench clarified that there would be no interest or penalty imposed on the assessees for tax due from the cut-off date of April 1, …

States can collect past tax dues on mineral rights, Supreme Court rejects Centre's plea
7 months, 2 weeks ago

States can collect past tax dues on mineral rights, Supreme Court rejects Centre's plea

Hindustan Times  

The Supreme Court on Wednesday allowed states to collect past dues on royalty on minerals bearing land from Centre, mining companies from April 1, 2005 onwards. The Supreme Court rejected the Centre’s plea for prospective effect of its July 25 verdict, which upheld the power of states to levy tax on mineral rights and mineral-bearing land, and allowed them to …

Supreme Court To Clarify Tomorrow Whether Judgement Upholding Powers Of States To Tax Mineral Rights Be Given Only Prospective Effect
7 months, 2 weeks ago

Supreme Court To Clarify Tomorrow Whether Judgement Upholding Powers Of States To Tax Mineral Rights Be Given Only Prospective Effect

Live Law  

The Supreme Court Constitution Bench will tomorrow pronounce its order clarifying whether its judgment upholding the rights of States to tax mineral rights will apply only prospectively. The Constitution Bench on July 25 held by an 8:1 majority that States have the power to levy tax on mineral rights and that the Union law - Mines and Minerals Act 1957 …

Explained: The Supreme Court verdict on states’ right to levy tax on minerals
7 months, 4 weeks ago

Explained: The Supreme Court verdict on states’ right to levy tax on minerals

Hindustan Times  

In a landmark judgment of Mineral Area Development Authority & Anr. A pivotal point of reference is the India Cement Ltd. v. State of Tamil Nadu, where a seven-judge Bench of the Supreme Court held that royalty, as imposed under the MMDR Act, is a tax and that states lacked the competence to levy taxes on mineral rights. Revisiting the …

Centre opposes Supreme Court plea for mineral royalty refund, cites ‘multipolar’ impact
7 months, 4 weeks ago

Centre opposes Supreme Court plea for mineral royalty refund, cites ‘multipolar’ impact

Live Mint  

The Centre on Wednesday argued in the Supreme Court against a request from mineral-rich states for a refund of royalty payments made since 1989. The bench, in an 8:1 decision, affirmed that the authority to levy taxes on mineral rights rests with the states, and that royalty payments for minerals are not considered a tax. Opposition-ruled states have requested that …

SC reserves decision on whether its verdict upholding State’s right to tax mineral rights should apply only prospectively
7 months, 4 weeks ago

SC reserves decision on whether its verdict upholding State’s right to tax mineral rights should apply only prospectively

The Hindu  

A nine-judge Bench of the Supreme Court on July 31 reserved for orders a query raised by the Centre on whether its July 25 judgment upholding the power of State Legislatures to tax mines and minerals rights would be applied retrospectively. Mr. Mehta said allowing States to demand retrospective taxes on mines and minerals rights would have a “cascading effects” …

SC upholds federalism in mining tax ruling
7 months, 4 weeks ago

SC upholds federalism in mining tax ruling

Hindustan Times  

On July 25, a nine-judge bench of the Supreme Court provided a fillip to the much-beleaguered condition of Indian federalism. Through an 8:1 judgment, the Court, in Mineral Area Development Authority v. Steel Authority of India, recognised the power of state governments to levy taxes on mineral rights. The government and a raft of mining corporations argued that the power …

DC Edit | Minerals ruling boosts federalism
8 months ago

DC Edit | Minerals ruling boosts federalism

Deccan Chronicle  

The Supreme Court’s sweeping 8-1 verdict of a large bench upholding the rights of states to tax minerals serves to redefine a very important principle of federalism at a time when that word has gained notoriety in the Indian context. The Centre’s right to abridge the rights of states to tax an important natural resource lying in their lands has …

Editorial on SC judgment on taxing mining activities: Fiscal federalism
8 months ago

Editorial on SC judgment on taxing mining activities: Fiscal federalism

The Hindu  

It is not often that fiscal federalism finds a prominent place in judicial discourse. The Union government argued that the very existence of its 1957 law was a limitation on the States’ power to tax mineral rights, but Chief Justice of India, Dr. D.Y. The Union was hoping that once royalty was accepted as a tax, it would wholly occupy …

States' Taxation Powers Must Be Protected From Unconstitutional Interference By Parliament: Supreme Court On 'Fiscal Federalism'
8 months ago

States' Taxation Powers Must Be Protected From Unconstitutional Interference By Parliament: Supreme Court On 'Fiscal Federalism'

Live Law  

While upholding the power of States to tax mineral rights and mineral-bearing lands, the Supreme Court emphasised the importance of safeguarding the principle of fiscal federalism. "Taxation is among the important sources of revenue for these States, impacting on their ability to deliver welfare schemes and services to the people.Fiscal federalism entails that the power of. "Taxation is among the …

SC grants states power to levy taxes on minerals-bearing lands
8 months ago

SC grants states power to levy taxes on minerals-bearing lands

Deccan Chronicle  

New Delhi: In a setback to the Centre, the Supreme Court in an 8:1 landmark ruling on Thursday held that royalty envisaged under the Mines and Minerals or MMDR Act 1957 “is not in the nature of tax” and there is no specific provision in the Act that imposes limitations on the power of the states to tax mineral rights. …

‘Royalty is not tax’, says Supreme Court; frees States from Centre’s restrictions on taxing mining lands and quarries.
8 months ago

‘Royalty is not tax’, says Supreme Court; frees States from Centre’s restrictions on taxing mining lands and quarries.

The Hindu  

A significant judgment delivered in a 8:1 ratio by a nine-judge Constitution Bench headed by Chief Justice of India D.Y. Chandrachud on July 25 held that the power of State Legislatures to tax mining lands and quarries is not limited by the Parliament’s Mines and Minerals Act of 1957. The majority judgment pronounced by Chief Justice Chandrachud said that State …

Setback to Centre as Supreme Court rules royalty on minerals is not tax
8 months ago

Setback to Centre as Supreme Court rules royalty on minerals is not tax

Hindustan Times  

In a landmark verdict, the Supreme Court on Thursday dealt a major blow to the Centre ruling that the royalty payable on minerals does not constitute a tax. Chief Justice Chandrachud, reading out the verdict for himself and seven other judges, said that Parliament does not have the power to tax mineral rights under Entry 50 of List II of …

SC upholds right of States to impose taxes on mines, mineral-bearing lands
8 months ago

SC upholds right of States to impose taxes on mines, mineral-bearing lands

New Indian Express  

NEW DELHI: In a setback to the Centre, the Supreme Court on Thursday held that royalty payable on minerals is not a tax and states have the legislative competence to impose taxes on mines and minerals-bearing lands. The verdict will boost the mineral-rich states like Jharkhand and Odisha as they urged the top court to decide on recovery of taxes …

Is Royalty On Mining Leases Tax? What Are States' Powers To Tax Mineral Rights? Supreme Court 9-Judge Bench Reserves Judgment
1 year ago

Is Royalty On Mining Leases Tax? What Are States' Powers To Tax Mineral Rights? Supreme Court 9-Judge Bench Reserves Judgment

Live Law  

The Supreme Court 9 judge constitution bench on Thursday reserved its judgment on the issue of whether royalties on mining leases be considered as tax and whether the States have the power to levy royalty/tax on mineral rights. It was further argued by the Mineral Development Authority of the State of UP, asserted that Entry 50 doesn't grant the Union …

States' Power To Tax Mineral Rights Eclipsed By Union Law On Mineral Development : Harish Salve In Supreme Court [Day 4]
1 year ago

States' Power To Tax Mineral Rights Eclipsed By Union Law On Mineral Development : Harish Salve In Supreme Court [Day 4]

Live Law  

The Supreme Court on Tuesday resumed its 4th day of hearing the 9-judge constitution bench matter about royalties imposed on mining. Senior Advocate Harish Salve, representing the Eastern Zone Mining Corporation, contended that Entry 50 is sui-generis, and the limitation on taxing power arises from the law of mineral development, not from legislation passed by Parliament. That's the real point.” …

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