SC allows states to seek refund of royalty on minerals from Centre, mining firms from 2005 onwards
New Delhi (PTI): The Supreme Court on Wednesday rejected the Centre’s plea for prospective effect of its July 25 verdict, which upheld the power of states to levy tax on mineral rights and mineral-bearing land, and allowed them to seek refund of royalty from April 1, 2005 onwards.
A nine-judge Constitution bench headed by Chief Justice DY Chandrachud said the argument for prospective effect of the July 25 ruling is rejected.
The bench also comprising justices Hrishikesh Roy, Abhay S Oka, BV Nagarathna, JB Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish Chandra Sharma and Augustine George Masih, however, said there will be conditionalities on payment of past dues.
It said payment of dues by the Centre and mining companies can be made to mineral-rich states in a staggered manner over the next 12 years.
The bench, however, directed the states to not impose a penalty of any kind on payment of dues.
The Centre has opposed the demand of states for refund of royalty levied on mines and minerals since 1989, saying it will impact the citizens and the PSUs will have to empty their coffers by Rs 70,000 crore according to initial estimates.
CJI Chandrachud said this verdict will be signed by eight-judges of the bench who by majority decided the July 25 judgement giving the state’s power to levy taxes on mineral rights.
He said that Justice Nagarathna will not sign Wednesday's verdict as she had given a dissenting view in the July 25 verdict.
In a majority 8:1 verdict on July 25, the bench had held that legislative power to tax mineral rights vests with states.
The verdict had overruled a 1989 judgement, which held that only the Centre has power to impose royalty on minerals and mineral-bearing land.
Some opposition-ruled mineral rich states then sought refund of royalty levied by the Centre and taxes from the mining companies since the 1989 verdict.
The matter of refund was heard on July 31 and order was reserved.
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Four passengers arrested at BLR airport with hydroponic ganja worth over Rs 21.5 crore
Bengaluru (PTI): Four passengers who arrived from Bangkok at Kempegowda International Airport here were arrested with hydroponic ganja valued at over Rs 21.5 crore in two separate cases, officials said on Saturday.
They were intercepted at Terminal 2 of the airport on May 1, they added.
In the first case, Bengaluru Customs said in a post on ‘X’ that three passengers arriving from Bangkok were intercepted, and 52.68 kg of hydroponic ganja, valued at Rs 18.43 crore, was seized from their baggage.
In a separate case on the same day, another passenger arriving from Bangkok was intercepted, and 9 kg of hydroponic ganja, valued at Rs 3.15 crore, was seized from his baggage.
In both cases, the accused, whose identities have not been disclosed, were arrested under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, officials added.
