Supreme Court to Hear Mineral Rights Taxation Pleas on May 20
To tax or not to tax mineral rights in India? SC to hear pleas on May 20
The Economic TimesImage: The Economic Times
The Supreme Court of India will hear pleas regarding the legislative power to tax mineral rights on May 20, after the Centre's curative petition remains pending. A previous ruling affirmed that states hold the power to tax mineral rights, with the Centre's authority limited in this regard.
- 01Supreme Court to review mineral rights taxation on May 20.
- 02Previous ruling established that states have the power to tax mineral rights.
- 03Centre's curative petition is still pending.
- 04States can recover tax dues on mineral rights from April 1, 2005.
- 05Interest and penalty on past tax demands waived until July 25, 2024.
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The Supreme Court of India is set to consider pleas regarding the taxation of mineral rights on May 20, 2024. This follows a significant ruling from a nine-judge bench in July 2024, which determined that the legislative power to tax mineral rights lies with the states, not the Parliament. The Centre's curative petition on this matter is still pending, prompting Solicitor General Tushar Mehta to request an adjournment. Some advocates supported this request, suggesting the pleas be heard after the curative petition's resolution, while others representing state authorities opposed the delay, citing the long history of the appeals dating back to 1999. The Supreme Court previously allowed mineral-rich states to recover dues from the Centre and mining companies, amounting to thousands of crore of rupees, with staggered payments starting from April 1, 2026. Additionally, the court waived interest and penalties on demands for the period before the July ruling.
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This ruling could significantly increase revenue for mineral-rich states, allowing them to recover substantial tax dues from the Centre and mining companies.
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