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The Supreme Court of India has definitively upheld the authority of state legislatures to impose taxes on mineral-bearing lands and quarries, rejecting pleas for a review of its landmark July 25 judgment. This decision, reached by a nine-judge bench, underscores the court's commitment to the principles of fiscal federalism, emphasizing the importance of granting states the power to generate revenue within their respective jurisdictions.
The court's stance against revisiting the judgment reflects its strong belief in the autonomy of state governments in matters of taxation. While the Union government and various stakeholders, including the Karnataka Iron and Steel Manufacturers Association, had sought a review, the majority of the judges on the bench dismissed these requests, citing the absence of any errors in the original decision. This reaffirms the Supreme Court's conviction that the July 25 judgment was well-reasoned and based on sound legal principles.
However, the dissenting voice of Justice B.V. Nagarathna, who had also opposed the original judgment, highlights a point of contention within the court. Justice Nagarathna believes there are grounds for a review of the case and has advocated for a public hearing to further examine the arguments. This dissenting opinion, while not altering the outcome of the review petitions, underscores the complexity and sensitivity of the issue of fiscal federalism and the potential for differing interpretations among the members of the court.
The July 25 judgment, which paved the way for states to exercise their right to tax mining activities, was based on the understanding that such taxation is essential for states to fulfill their financial obligations and contribute to economic development. The court recognized the need to ensure the financial well-being of resource-rich states, particularly those like Chhattisgarh, Jharkhand, and Odisha, which often face challenges in achieving equitable economic growth. The decision emphasizes the importance of empowering states to manage their own resources and contribute to the overall progress of the nation.
The Supreme Court's stand on the taxation of mineral lands and quarries has significant implications for the future of mining operations in India. By granting states greater autonomy in this domain, the court has fostered a more balanced approach to resource management, ensuring that both the central government and state governments play active roles in the economic development of the country. This decision, while likely to face scrutiny and debate, represents a landmark moment in the evolution of fiscal federalism in India.
Source: SC dismisses pleas to review verdict upholding States’ right to tax mineral lands, quarries