Centre Seeks Review of Supreme Court Order on Mineral Royalty and Tax: Implications for PSUs and Industries
By: Admin
September 13, 2024
Categories: TAX News
4 Min Read
The Centre has filed a review petition against a Supreme Court order that allows states to collect royalty on extracted minerals and impose taxes on mineral-bearing land, as reported by The Times of India.
The Centre, facing financial strain due to the ruling, argues that the decision contains errors that could significantly impact public sector undertakings (PSUs) and industries. Co-filed with Madhya Pradesh, the review petition highlights concerns about citizens’ fundamental rights and the broader public interest. The Centre warned that denying an oral hearing would lead to “grave injustice.”
The Supreme Court’s July 25 ruling requires payment of royalty and tax arrears in installments over 12 years. This decision has major financial implications. PSUs alone owe approximately Rs 70,000 crore, while total dues, including those from the private sector, rise to Rs 1.5 lakh crore.
Several mineral-rich states, such as Jharkhand, Odisha, Chhattisgarh, Karnataka, Andhra Pradesh, and Rajasthan, stand to benefit from the verdict. Nevertheless, the Centre cautions that retroactive implementation of these levies could impose a significant financial burden on PSUs and industries. This, in turn, might disrupt the economy and increase product prices.
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