The Centre on Tuesday told the Supreme Court it has filed a curative petition challenging the July 25, 2024, ruling of a nine-judge bench which held that the power to tax mineral rights rests solely with states.
Solicitor General Tushar Mehta said, “We have filed a curative petition with all seriousness.” The apex court had earlier dismissed review pleas against the verdict, delivered by a bench led by then Chief Justice D.Y. Chandrachud, in an 8:1 majority.
The 2024 judgment stated that Parliament lacks legislative competence to tax mineral rights under Entry 54 of List I, though it can impose limitations on states’ taxation powers. Justice B.V. Nagarathna, in her dissent, argued that royalty is akin to tax and Parliament can levy it.
In a boost to mineral-rich states, the ruling allowed recovery of pending royalty and tax dues from April 2005, to be paid over 12 years starting April 2026, with penalties and interest waived for arrears before July 25, 2024.