NEW DELHI: The Supreme Court ruled on Wednesday that mineral-rich states can collect royalties and taxes on minerals-bearing land from April 1, 2005, from the Central and mining companies.
The top court’s decision allows these states to recover outstanding dues in a staggered manner over the next 12 years. However, states are prohibited from charging penalties or interest on the arrears.
A nine-judge bench, led by Chief Justice DY Chandrachud, upheld the states’ right to levy royalties and taxes on mineral-bearing land.
The bench on Wednesday rejected the mineral area development authority’s request to enforce these levies only prospectively. The court clarified that while states are entitled to collect these past dues, they are prohibited from imposing penalties or interest on the arrears.
The top court’s decision allows these states to recover outstanding dues in a staggered manner over the next 12 years. However, states are prohibited from charging penalties or interest on the arrears.
A nine-judge bench, led by Chief Justice DY Chandrachud, upheld the states’ right to levy royalties and taxes on mineral-bearing land.
The bench on Wednesday rejected the mineral area development authority’s request to enforce these levies only prospectively. The court clarified that while states are entitled to collect these past dues, they are prohibited from imposing penalties or interest on the arrears.