Archive · 23 Sep 2025
Centre Challenges Supreme Court Ruling on Mineral Taxation
Imagine the government and states are arguing over who can collect taxes on minerals like coal and iron.
The Supreme Court initially sided with the states, saying they have the right to tax these minerals.
This means states can claim money from the government and mining companies dating back to 2005.
The government, however, disagrees with this decision and has asked the court to review it again, calling it a 'curative petition'.
The court had a 8:1 decision, with one judge disagreeing.
The court also decided that states could claim taxes in 12 yearly installments.
The dissenting judge believed the government has the power to levy royalty in the form of taxes.
The Centre has filed a curative petition to the Supreme Court regarding mineral taxation.
The Supreme Court ruled that states have the legislative power to tax mineral rights.
The initial ruling was made by a nine-judge bench with an 8:1 majority.
States are allowed to recover royalty and tax dues from the Centre and mining companies.
The payment of tax demands will be staggered over 12 years, starting April 1, 2026.
- Who
- The Centre (Indian government), various states, mining companies, and the Supreme Court.
- What
- The Centre has filed a curative petition against the Supreme Court's ruling on mineral taxation rights.
- When
- The curative petition was filed recently, following a ruling on July 25, 2024.
- Where
- The Supreme Court of India.
- Why
- The Centre disagrees with the court's ruling that states have the legislative power to tax mineral rights and seeks to overturn it.
- Case
- Curative Petition regarding mineral taxation rights
- Court
- Supreme Court of India
- Centre's Representative
- Solicitor General Tushar Mehta
- Original Verdict
- 9-judge bench, 8:1 majority, states have power to tax mineral rights
- Dissenting Judge
- Justice B. V. Nagarathna
- Ruling Date
- July 25, 2024 (original verdict)
- Royalty/Tax Dues Recovery
- States can recover dues from Centre and mining companies since April 1, 2005
- Payment Timeline
- 12-year installments starting April 1, 2026