NEW DELHI: The Supreme Court on Wednesday said it would on May 20 hear petitions on legislative power to tax mineral rights, after the Center said its curative plea in the matter was still pending.
In September 2024, the Supreme Court denied petitions seeking review of its July 25, 2024, nine-judge ruling, which ruled that legislative authority to tax mineral rights is vested in the states.
The nine-judge bench, in an 8:1 majority ruling, said Parliament did not have the legislative jurisdiction to tax mineral rights under Entry 54 of List I of the Constitution relating to regulation of mines and mineral development by the Centre.
After rejecting the review petitions, the Center filed a curative petition in the Supreme Court.
On Wednesday, Solicitor General Tushar Mehta asked a bench of Justices Vikram Nath, Sandeep Mehta and Vijay Bishnoi to adjourn the case, saying the curative petition filed by the Center was still pending.
Some advocates, who appeared in the case, supported Mehta’s application and said that the petitions will be heard after the curative petition is decided.
They urged the bench to list the petitions in July.
However, lawyers representing some state authorities opposed the applications and said the review petitions had already been rejected. One advocate said some appeals were filed in 1999 and 2011.
The court postponed the matter to May 20.
The ruling by nine judges said Parliament could still legislate to impose “any restrictions” on the power of states to tax mining rights.
In her dissenting ruling, Justice BV Nagarathna said the royalty was in the nature of a tax or extortion and the Center had the power to levy it.
On August 14, 2024, in a major victory for the mineral-rich states, the Supreme Court allowed them to recover royalties and tax dues from the Center and mining companies on mineral rights and mineral-bearing lands worth thousands of crores of rupees since April 1, 2005 over a period of 12 years.
She said that the time for payment of the tax demand by the states will be in installments over a period of 12 years starting from April 1, 2026.
The Supreme Court also said keeping in mind the consequences that may arise from the past, it imposed conditions and ordered waiver of imposition of interest and penalty on applications submitted for the period before July 25, 2024 for all residents.
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