Tata Steel Files Curative Petition with Supreme Court Over Tax Imposition on Mineral-Bearing Land
By: Admin
Date: January 20, 2025
Categories: Tax News
Reading Time: 4 Minutes
Tata Steel, a prominent player in the steel industry, filed a curative petition with the Supreme Court of India on January 17, 2025. The petition challenges the tax imposed on its mineral-rich land in Odisha under the Orissa Rural Infrastructure and Socio-Economic Development Act, 2004.
Key Highlights
Curative Petition Filed:
Tata Steel exercised the Supreme Court’s extraordinary jurisdiction under Order XLVIII, Rule 1 of the Supreme Court Rules, 2013.
Background:
- In its ruling on July 25, 2024, the constitutional Bench of the Supreme Court upheld the state’s authority to tax mineral-bearing land.
- On August 14, 2024, the Court issued a clarification, leaving further matters open for review.
- The Supreme Court dismissed Tata Steel’s review petitions on September 24, 2024.
Current Petition:
Tata Steel seeks reconsideration of the dismissed review petitions and challenges the Court’s earlier decisions.
Historical Context
The case originates from a landmark Supreme Court ruling affirming the state’s authority to tax mineral rights under the Mines and Minerals (Development & Regulation) Act, 1957. The ruling emphasized that central laws do not prevent states from taxing mineral-rich lands. This decision has significantly impacted industries reliant on mineral resources.
Implications for Tata Steel and the Industry
- Legal Precedent:
The Supreme Court’s earlier decisions set a precedent for states’ taxation rights on mineral-bearing lands, affecting businesses in similar circumstances. - Financial Impact:
If the curative petition is unsuccessful, Tata Steel and other companies may face substantial tax liabilities under the Orissa Rural Infrastructure and Socio-Economic Development Act, 2004. - Final Legal Recourse:
The curative petition serves as Tata Steel’s last opportunity to challenge the constitutional validity of the tax and seek relief.
Tata Steel’s Statement
In a regulatory filing, Tata Steel stated:
“…we wish to inform you that the company has today, i.e., January 17, 2025, filed a Curative Petition before the Hon’ble Supreme Court of India, praying invocation of extraordinary jurisdiction… in respect of the order dated September 24, 2024…”
Conclusion
The Supreme Court’s decision on this petition could reshape the taxation framework for mineral resources in India. The outcome will also influence the financial strategies of industries dependent on these resources. Stay tuned for updates on this pivotal case.
