NEW DELHI: In a financial bonanza for mineral-rich states, Supreme Court on Wednesday asked public sector undertakings and private entities engaged in mining activities, as well as those using mineral produce as raw material, to pay arrears of royalty and tax on mineral-bearing land to states from 2005 in a staggered manner over the next 12 years.
A nine-judge bench of CJI D Y Chandrachud and Justices Hrishikesh Roy, A S Oka, J B Pardiwala, Manoj Misra, Ujjal Bhuyan, S C Sharma and A G Masih, with Justice B V Nagarathna dissenting, said the arrears would not include interest on principal amount due, or any penalty for late payment. "The levy of interest and penalty on demands made for the period before July 25, 2024, shall stand waived for all the assessees," it said.
The bench had by eight to one majority on July 25 overruled a 1991 seven-judge bench ruling (India Cement case) and agreed with a 2004 five-judge bench decision (in Kesoram case) to give states the right to levy royalty and impose tax on mineral-bearing land. On Wednesday, it rejected fervent pleas from Union govt and private players for prospective application of the judgment.
Solicitor general Tushar Mehta had told the court that retrospective application of the July 25 judgment would require payment of arrears for the past 33 years (since 1991).
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