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Supreme Court: The Supreme Court has given a big blow to the Modi government in the matter of imposing tax on minerals. The court has ruled in favor of the state governments in the matter of tax on minerals. Chief Justice of India DY Chandrachud said that the 1989 decision of the seven-judge constitutional bench of the apex court, which said that royalty is a tax, is wrong.
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A nine-judge Constitution Bench of the Supreme Court ruled by a majority of 8:1 that under the Constitution, the states have the right to levy tax on mines and mineral-rich land. Royalty payable on extracted minerals is not a tax. CJI DY Chandrachud delivered the majority verdict along with seven other judges, while Justice BV Nagarathna dissented and ruled against them.
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The decision of the seven-judge constitutional bench was wrong
Reading out the operative portion of the majority judgment, Chief Justice Chandrachud said the 1989 verdict of a seven-judge Constitution bench of the apex court, which held that royalty is a tax, was erroneous. At the outset, the CJI said the bench had delivered two separate judgments and Justice BV Nagarathna had given a dissenting opinion, different from the other judges in the case.
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These judges are included in the Constitution Bench of 9 judges
The Constitution Bench of 9 judges of the Supreme Court included CJI Chandrachud, Justice Nagarathna, Justice Hrishikesh Roy, Justice Abhay S Oka, Justice JB Pardiwala, Justice Manoj Mishra, Justice Ujjal Bhuiyan, Justice Satish Chandra Sharma and Justice Augustine George Masih.
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