The Supreme Court deliberated on whether royalties are similar to taxes and if state governments can tax minerals based on their value. They analyzed the disparity between royalties and mineral value taxes, crucial for determining the constitutionality of state mining taxes. The hearing also debated the differentiation between constitutional entries 49 and 50. Senior Advocate Harish Salve emphasized the Mines and Minerals Act’s limitations on state taxation powers and clarified that royalties, while not conventional taxes, are statutory obligations beyond state government control. These discussions form the foundation of a landmark legal case.
