Supreme Court’s Ruling on States’ Taxation of Mining Activities
On 25th July, 2024, a nine-judge Constitution Bench of the Supreme Court (SC), in an 8-1 majority ruling, upheld the power of states to levy royalty on extraction of minerals from their land and said they can also tax the lands which comprise mines and quarries.
Background of the Case
- The dispute originated from the enactment of the Mines and Minerals (Development & Regulation) Act (MMDR) Act by the Union Government in 1957, which brought the control of mines and minerals under the Union government's jurisdiction. Section 9 of this Act mandated that mining lease holders should pay royalties for ....
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