THE JHARKHAND STORY DESK
New Delhi, July 31: The Supreme Court on Wednesday reserved its ruling on whether the royalty charged by the Centre on mines and mineral-bearing lands since 1989 should be refunded to the states.
Notably on July 25, in a landmark judgment, a nine-judge Constitution Bench of the Supreme Court said in an 8:1 majority decision that states have legislative authority to impose taxes on mines and mineral-rich land, and the royalty paid on minerals is not a tax.
A nine-judge Constitution bench, led by Chief Justice DY Chandrachud, reserved its judgment after hearing arguments from the Centre, states, and mining companies on its July 25 ruling.
The bench also comprised Justices Hrishikesh Roy, Abhay S Oka, JB Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma and Augustine George Masih.
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Centre opposes petition of states
During the hearing, the central government opposed the petition in the Supreme Court where mineral-rich states requested a refund of royalties imposed by it on minerals and mineral-rich land since 1989.
The centre argued that any order directing it to refund royalties to the states with retrospective effect would have multifaceted implications.
Debate arises over retrospective application of SC verdict
This decision by the Supreme Court is expected to lead to a significant increase in revenue for mineral-rich states. However, it has sparked another controversy regarding the implementation of the ruling.
Some mineral-rich states governed by opposition parties have requested the Supreme Court to apply this decision retrospectively so that they can seek a refund of royalties from the centre.
The centre has opposed any such order, arguing that it would have multifaceted implications. Mining companies have also supported the centre’s stance on not refunding royalties to the mineral-rich states.
Solicitor General Tushar Mehta, representing the centre, stated that states like Madhya Pradesh and Rajasthan, which are governed by the Bharatiya Janata Party, want the decision to be implemented with prospective effect.
