The Supreme Court held that enhanced royalty on iron ore cannot be avoided merely because an e-auction agreement predated the royalty revision. The Court clarified that royalty liability arises upon removal or dispatch of minerals, and statutory amendments override contrary contractual arrangements under mining law.
Today(11th Sept),The Supreme Court of India will form a special bench to address pleas from mineral-rich states like Jharkhand seeking recovery of royalty and tax dues from the Centre and mining firms. This follows a July 25 ruling affirming that states, not Parliament, hold the power to tax mineral rights.
Singapore Supreme Court Judge Judith Prakash joins Today a nine-judge bench in India to determine if royalties from mineral rights constitute a tax. Chief Justice Chandrachud welcomed her as a guest member, noting her involvement in the Delhi Arbitration Weekend. The event, held from March 6 to 10, is organized by the Delhi International Arbitration Centre.
Day-3 | 9-Judge Bench- The Supreme Court clarified that the power to impose a tax on mineral rights lies with the states, not the Parliament, and emphasized the need to preserve this authority. The court is deliberating on whether the royalty collected by the Centre on mining leases qualifies as a tax. The hearing will resume on March 5.