SC lifts mineral tax bar on states

Nine-judge bench rules 8:1 that royalty is not tax; Justice Nagarathna writes dissenting verdict

- SUCHITRA KALYAN MOHANTY

IN a significant ruling, a ninejudge bench of the Supreme Court on Thursday held that states have the legislative power to levy tax on minerals.

The majority 8:1 judgment authored by Chief Justice D Y Chandrachud said payments of royalty is different from tax.

It struck down a seven-judge ruling in the India Cements case in 1989, which said royalty is tax. "Payments made to the government cannot be deemed to be a tax merely because a statute provides for its recovery in arrears," the majority verdict said.