8-1 decision on mineral tax, who was the only judge to give decision against the majority?

New Delhi: The Supreme Court has given a historic verdict on tax on minerals. The Supreme Court said that under the Constitution, the states have the legislative right to impose tax on mines and mineral-rich land. The Constitution Bench of nine judges of the apex court gave the verdict with a majority of 8:1. It said that the ‘royalty’ payable on minerals is not a tax. In this way, mineral-rich states have got a big victory in the Supreme Court. The court has upheld the right of state governments to impose royalty on mineral-rich land. In a historic 8:1 decision, a bench headed by Chief Justice DY Chandrachud gave the verdict. At the same time, Justice BV Nagarathna gave the only dissenting verdict in this bench. Know what he/she commented.

Landmark decision of the Supreme Court

The Supreme Court’s historic decision on mineral tax has come. The central government has suffered a setback in this. The bench headed by the CJI said that royalty is not a tax. In this bench, Justice BV Nagarathna disagreed with the majority decision. he/she said that the nature of royalty payment under the MMDR Act is unique. Seen from this point of view, royalty payment under the MMDR Act is a type of tax. he/she said that under the statutory scheme of the MMDR Act, any exercise of mineral rights to the lessee is subject to royalty payment. Recovery of royalty is statutory in nature. I believe that royalty is in the nature of tax or recovery.

SC On Mineral Tax: There is no royalty tax on minerals, a big decision of the Supreme Court, a big blow to the Center

What did Justice Nagarathna say

Justice Nagarathna held during the judgment that the states have no power to impose any tax or cess on mining activities or mineral use. Sections 9 and 9A of the MMDR Act are restrictions and limits on the power of the states to impose any tax on the exercise of mineral rights. This is because the royalty paid for these rights is a statutory recovery of such right. he/she also agreed with the Centre’s stand that allowing states to impose tax on mineral use would be against mineral development in the country.

This will lead to double taxation- Justice Nagarathna

Justice Nagarathna said that royalty as a compulsory levy fulfilled all the criteria of tax. Therefore, the states are deprived of the powers to levy cess or any other duty on royalty or to define it as land revenue. Such state duty on royalty is against the mineral development of the country. Justice Nagarathna concluded that if states are allowed to levy tax on mineral use or mining activities, it will lead to double taxation. he/she said that this is unacceptable in view of the constitutional intent. Thus royalty cannot be a means of taxing mineral-bearing land. Thus, resorting to it by the states will have an impact.

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Who is Justice BV Nagarathna

A historic 8-1 decision was given by the Supreme Court on the tax on minerals. Justice BV Nagarathna was the only one to disagree from the bench. She has given many big decisions before this as well. Nagarathna, who has a calm nature, is known for her strict decisions. Nagarathna’s tough stand is clearly visible in decisions ranging from demonetization to freedom of expression. Justice Nagarathna also reprimanded the Gujarat government in the Bilkis Bano case. Born on 30 October 1962, Nagarathna will become the first woman Chief Justice of the country in 2027. Nagarathna became a Supreme Court judge on 31 August 2021. She will retire from her post on 30 October 2027. Nagarathna started her career as a lawyer on 28 October 1987. Nagarathna has obtained an LLB degree from Delhi University.