Supreme Court Allows States to Recover Past Tax Dues on Mineral Rights Post-2005

By: Admin
Date: August 14, 2024
Category: Tax News
Read Time: 4 Minutes

The Supreme Court of India has ruled that states now have the authority to recover past tax dues on mineral rights and mineral-bearing lands, specifically for the period starting from April 1, 2005. This decision comes after the Court’s earlier judgment on July 25, which had already upheld the states’ power to tax mineral rights.

Key Highlights:

  • Judgment Impact: The Court’s decision allows states to recover past tax dues; however, this is limited to the period after April 1, 2005.
  • Payment Terms: Moreover, states can collect these arrears over a 12-year period starting from April 1, 2026. Importantly, they can do so without imposing interest or penalties on the amounts due before July 25, 2024.
  • Judgment Details: Furthermore, the July 25 judgment was delivered by a 9-judge bench led by CJI DY Chandrachud. This judgment affirmed the states’ taxing powers over mineral rights, thereby overriding the 1990 precedent set by the India Cements case.
  • Retrospective vs. Prospective Effect: Additionally, the Court rejected arguments to limit the judgment’s application to future cases, thereby allowing states to claim past dues.

Case Information:

  • Case Name: Mineral Area Development v. M/S Steel Authority Of India & Ors
  • Case Number: CA No. 4056/1999

#SupremeCourt #TaxNews #MineralRights #IndiaJudiciary #LegalUpdate #TaxLaw #CJIChandrachud

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