Why in news
The Supreme Court's nine-judge Bench has reserved its decision on the applicability of its judgment concerning state taxation of mines and mineral rights.
The key issue is whether this ruling will be applied retrospectively.
Appearing before the Bench, Solicitor-General Tushar Mehta urged the court to clarify that the judgment would only apply prospectively
What is Supreme Court Judgment
The judgment addressed conflicts between state and central authorities regarding the extent of state powers to tax mining operations
The Supreme Court upheld the authority of state legislatures to impose taxes on mining operations
Asserting that states can levy taxes on mineral rights and mining activities beyond just royalty payments
Potential Impact
Significant unexpected tax liabilities burden industries
Companies may face bankruptcy due to high retrospective tax demands.
Risk of disputes and refund demands from entities that already paid under previous rules.
Increased operational costs and financial instability in mining-dependent sectors.
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