Supreme Court of India Allows States to Collect Past Dues on Mines and Minerals
The Supreme Court of India has made an important decision that affects states with lots of minerals. These states can now collect past dues on royalty and taxes from April 1, 2005. This means they can get money they were supposed to get from mining activities.
Payment Plan
The court said that these past dues should be paid over the next 12 years, starting from April 1, 2026. Importantly, no extra charges or penalties will be added for demands made before July 25, 2024.
Who Decided?
A nine-judge bench, including Chief Justice of India DY Chandrachud and Justices Hrishikesh Roy, Abhay S. Oka, BV Nagarathna, JB Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma, and Augustine George Masih, made this decision.
What is Royalty?
The court explained that royalty is not a tax. It is a payment made by mining companies to the government for the right to extract minerals. This payment is part of the contract between the mining company and the government.
Different Opinions
Most judges agreed with this decision, but Justice Nagarathna had a different opinion. She said that royalty is like a tax and warned that allowing states to collect these taxes could cause problems, like unfair competition between states.
Background
This case was about whether state governments could tax and regulate mining activities, even though there is a national law called the Mines and Minerals (Development and Regulation) Act, 1957.
Doubts Revealed
Supreme Court of India -: The Supreme Court of India is the highest court in the country. It makes important decisions on laws and can overrule lower courts.
royalty -: Royalty is a payment made to the owner of land or resources, like minerals, for the right to use or extract them. It’s like paying rent for using someone else’s property.
mines and minerals -: Mines are places where people dig into the earth to find valuable materials like gold, coal, or iron. Minerals are the valuable materials found in the ground.
Justice Nagarathna -: Justice Nagarathna is a judge in the Supreme Court of India. Judges make decisions on legal cases and help interpret the law.
dissented -: Dissented means that Justice Nagarathna did not agree with the other judges’ decision. She had a different opinion on the matter.
