Bhubaneswar: Steel and Mines Minister Bibhuti Bhusan Jena said that the State Government will study the Apex Court’s Judgment on the legislative power to tax mineral rights vests with the states.
Steel and Mines Minister Shri Jena said the State Administration is waiting for a copy of the Judgment which will give big revenue boost to mineral-rich states.
“We have not seen the Judgment copy. Let it come and we will study it. The state will examine the verdict on mines and mineral tax,” Minister Shri Jena told Media.
However, Department of Steel and Mines officials refused to comment on the Supreme Court verdict, which is considered as a setback for the Union Government.
The legislative power to tax mineral rights vests with the states and the royalty paid on minerals is not a tax, the Supreme Court ruled on Thursday.
A Nine Judge Constitution Bench headed by Chief Justice D Y Chandrachud, in a majority 8:1 verdict, said Parliament does not have the legislative competence to tax mineral rights under Entry 54 of List I of the Constitution which pertains to regulation of mines and mineral development by the Centre.
The pronouncement, which came as a setback to the Union Government, however, said that Parliament can still legislate to impose “any limitations” on states’ power to levy tax on mineral rights.
The Opposition Biju Janata Dal (BJD), which had been demanding the rights of the states in the mines and mineral sector, decided to hold a press conference on the SC verdict on Friday.
Leading Mining Sector Officials and Industry Experts admitted that the Judgment will provide boost to the Mineral Rich States including Odisha.