Background:
A nine-judge Constitution Bench of the Supreme Court, led by Chief Justice DY Chandrachud, rejected the Centre’s request for the prospective effect of its July 25 decision, which upheld states’ authority to levy taxes on mineral rights and mineral-bearing land and allowed them to seek royalty refunds beginning April 1, 2005.
While dismissing the argument that the July 25 verdict had a prospective effect, the court stated that the Centre and mining corporations might pay dues to mineral-rich states in a staggered manner over the following 12 years. However, the Bench asked the governments not to apply any type of penalty for late payment.
Earlier on July 25, the Supreme Court reversed a 1989 decision that declared that only the Centre has the authority to levy royalties on minerals and mineral-bearing land, and stated that states had the legislative ability to tax mineral rights
“How significant would this impact be for Godawari Power & Ispat Ltd (GPIL)?
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