Centre moves Supreme Court against verdict on mineral taxation rights
The Centre on Tuesday informed the Supreme Court of having filed a curative petition after a nine-judge bench in a 8:1 majority verdict ruled that the legislative power to tax mineral rights vested with states.
Solicitor General Tushar Mehta, appearing for the Centre, informed about moving against the majority verdict to a bench of Justices Vikram Nath and Sandeep Mehta.
"We have filed a curative petition with all seriousness," Mehta said.
The top court last year dismissed the pleas seeking review of its July 25, 2024 verdict.
A nine-judge Constitution bench headed by former Chief Justice D Y Chandrachud, in a majority 8:1 verdict, said Parliament does not have the legislative competence to tax mineral rights under Entry 54 of List I of the Constitution which relates to regulation of mines and mineral development by the Centre.
The pronouncement, which came as a setback to the Centre, further said Parliament could still legislate to impose "any limitations" on power of states to levy tax on mineral rights.
Justice B V Nagarathna, in her dissenting verdict, said royalty was in the nature of a tax or an exaction and the Centre does have the power to levy it.
On August 14 last year, in a major victory for mineral-rich states, the top court had allowed them to recover from the Centre and mining companies royalty and tax dues on mineral rights and mineral-bearing lands worth thousands of crore of rupees since April 1, 2005 over a period of 12 years.
It said the time for payment of the demand of tax by the states shall be staggered in instalments over a period of 12 years commencing from April 1, 2026.
