Supreme Court Decides on State Taxes for Mines and Minerals
The Supreme Court of India is currently deciding whether its recent ruling on state taxes for mines and minerals will apply retroactively. On July 25, a nine-judge bench led by Chief Justice D Y Chandrachud ruled that states have the power to levy taxes on mineral-bearing lands.
The court is now considering if this decision will affect past royalties collected since 1989. The Centre, represented by Solicitor General Tushar Mehta, argues that making the ruling retroactive could lead to increased prices, affecting the common man. On the other hand, mineral-rich states are seeking refunds for the royalties they have paid.
The majority judgement stated that royalty is not a tax but a contractual payment for mineral rights. Justice BV Nagarathna, however, dissented, arguing that royalty is like a tax and that allowing states to levy taxes could lead to a lack of uniformity and unhealthy competition among states.
The final decision on whether the ruling will apply retroactively is still pending.
Doubts Revealed
Supreme Court -: The Supreme Court is the highest court in India. It makes important decisions about laws and rules in the country.
State Taxes -: State taxes are money that people or businesses have to pay to the state government. These taxes help the state pay for things like schools, roads, and hospitals.
Mines and Minerals -: Mines are places where people dig up valuable things like gold, coal, or iron from the ground. Minerals are the valuable things they find in the mines.
Retroactively -: Retroactively means applying a new rule or law to things that happened in the past. For example, if a new rule is made today, it could also change things that happened last year.
Nine-judge bench -: A nine-judge bench means that nine judges are working together to make a decision on a very important case.
Chief Justice D Y Chandrachud -: Chief Justice D Y Chandrachud is the head judge of the Supreme Court of India. He leads the other judges in making important decisions.
Levy taxes -: To levy taxes means to officially decide that people or businesses must pay a certain amount of money to the government.
Mineral-bearing lands -: Mineral-bearing lands are areas of land that have valuable minerals like gold, coal, or iron under the ground.
Royalties -: Royalties are payments made to the government for the right to use or take something valuable, like minerals from the ground.
The Centre -: The Centre refers to the central government of India, which is responsible for the whole country, unlike state governments which are responsible for individual states.
Mineral-rich states -: Mineral-rich states are states in India that have a lot of valuable minerals in the ground, like Jharkhand or Odisha.
