Supreme Court of India Dismisses Review Petitions on Mineral Taxation
The Supreme Court of India has rejected petitions seeking to review a previous judgement by a nine-judge bench. This judgement affirmed that states have the authority to levy taxes on lands with mines and minerals, and clarified that royalties on extracted minerals are not considered a tax. The bench, led by Chief Justice DY Chandrachud and including Justices Hrishikesh Roy, Abhay S Oka, BV Nagarathna, JB Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma, and Augustine George Masih, dismissed the review petitions. However, Justice Nagarathna dissented, believing a review was warranted.
The Central government had sought a review, citing errors in the judgement. The original ruling, made on July 25, determined that states, not Parliament, have the legislative power to tax mineral rights. The court also allowed states to collect past dues on royalties and taxes from April 1, 2005, to be paid over 12 years starting April 1, 2026, without interest or penalties for demands before July 25, 2024.
Justice Nagarathna disagreed with the majority, arguing that royalty is akin to a tax and that allowing states to levy taxes could disrupt national uniformity and federal balance. The case revolved around whether state powers to tax and regulate mines and minerals were affected by the Mines and Minerals (Development and Regulation) Act of 1957.
Doubts Revealed
Supreme Court of India -: The Supreme Court of India is the highest judicial court in the country. It makes important decisions on legal matters and ensures that laws are followed correctly.
Review Petitions -: Review petitions are requests to the court to re-examine its previous judgement. People file these when they believe there has been a mistake in the court’s decision.
Mineral Taxation -: Mineral taxation refers to the taxes or fees that governments charge for extracting minerals from the earth. These minerals can include things like coal, iron, and gold.
Royalties -: Royalties are payments made to the government for the right to extract minerals. They are like a fee for using natural resources.
Chief Justice DY Chandrachud -: Chief Justice DY Chandrachud is a senior judge and the head of the Supreme Court of India. He leads the court in making important legal decisions.
Justice Nagarathna -: Justice Nagarathna is a judge in the Supreme Court of India. She sometimes has different opinions from other judges, which is called dissenting.
Mines and Minerals (Development and Regulation) Act of 1957 -: This is a law in India that regulates the mining and development of minerals. It sets rules for how minerals can be extracted and who can do it.
