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Supreme Court orders mining companies to pay taxes to states: The Supreme Court has given a big blow to the central government and mining companies by deciding to keep the right to tax on mineral rights with the state government and pay the outstanding tax. The Supreme Court's decision will benefit mineral and mining rich states like Odisha, Jharkhand, Bengal, Chhattisgarh, Madhya Pradesh, Andhra Pradesh, Rajasthan and north-eastern states.
This decision was given by the Supreme Court
The Supreme Court, while retaining the right to levy tax on minerals, has clarified that mining companies will have to pay the tax imposed by the states from April 1, 2005. Also, the states will be able to collect appropriate tax and royalty on the land used for mining from this period. The installments to be paid by the mining companies and the Center to the states can be made for 12 years from April 1, 2026. However, no interest or penalty will be payable on the demand made for the period before July 25, 2024.
This decision has been taken with the support of eight judges out of the nine-judge Constitution Bench. In which the bench of Chief Justice DY Chandrachud, Justice Rishikesh Roy, Justice Abhay S. Oak, Justice BV Nagaratna, Justice JB Pardiwala, Justice Manoj Mishra, Justice Ujjwal Bhuiyan, Justice Satish Chandra Sharma and Justice Augusti George Masih took this decision. While Justice Nagaratna gave a separate decision from the majority.
These companies will be affected
Non-fulfillment of cess expectations on royalty will have an adverse effect on companies working in the metal and mining segment. The Supreme Court's order will also affect cement companies. Cess worth about 2 lakh crores is due. In which government companies owe only Rs. 60000 crores cess.
