Supreme Court to Tackle Tax Dispute Between Centre and Mineral-Rich States

Efforts are underway to resolve a dispute over royalty and tax dues between the Centre and mineral-rich states like Jharkhand. The Supreme Court deferred the hearing to April 24, 2024. A previous judgment declared states hold legislative power to tax mineral rights, overturning an earlier decision favoring the Centre.

The Supreme Court is set to address a contentious issue involving the recovery of royalty and tax dues between the Centre and several mineral-rich states. At the heart of the matter is the legislative power to tax mineral rights and mineral-bearing lands, a topic that has sparked significant debate and legal contention.

On Thursday, during a court session, the Centre's Solicitor General Tushar Mehta indicated efforts to settle the ongoing dispute. As a result, the hearing is rescheduled for April 24. This extension comes after a nine-judge bench ruled states possess the legislative power to tax mineral rights, a decision that contradicts a previous 1989 judgment which assigned that power solely to the Centre.

Key stakeholders, such as senior advocate Rakesh Dwivedi representing Jharkhand, are advocating for a swift resolution to enable states to recover pending dues. The outcome is anticipated eagerly by several states, as it has far-reaching fiscal implications for their economies.

(With inputs from agencies.)