SC dismisses review petitions on taxation of mines

New Delhi: The Supreme Court has dismissed petitions seeking a review of its landmark 9-judge bench judgment, which affirmed that states possess the authority to levy taxes on mineral-bearing lands and clarified that royalties on extracted minerals do not constitute a tax.
The bench, led by Chief Justice DY Chandrachud and including Justices Hrishikesh Roy, Abhay S Oka, BV Nagarathna, JB Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma, and Augustine George Masih, rejected the review petitions.
Notably, Justice Nagarathna dissented from the majority decision and argued that a case for review was warranted, echoing her previous dissent in the original ruling. She highlighted that upon reviewing the petitions, the majority found no apparent errors in the judgment, stating, “No case for review under Order XLVII Rule 1 of the Supreme Court Rules 2013 has been established.”
The Central government had approached the Court in September, citing several alleged “errors apparent” in the judgment. On July 25, the 9-judge bench reached a decisive 8:1 ruling, declaring that the legislative authority to tax mineral rights resides with the states, not Parliament.
In a subsequent order on August 14, the Court clarified that the ruling would not have a prospective effect, allowing states to collect past dues on royalties and taxes dating back to April 1, 2005.
The Court stated that these dues would be paid in a staggered manner over 12 years, beginning April 1, 2026, and emphasized that no interest or penalties would apply for demands made prior to July 25, 2024.