Royalty Not Tax, States Can Tax Mineral Lands: SC

Mineral Area Development Authority & Anr. Vs Steel Authority of India & Anr Etc. (Supreme Court of India) In Mineral Area Development Authority & Anr. Vs Steel Authority of India & Anr, the Supreme Court’s 9-judge bench, with an 8:1 majority, clarified several critical issues regarding the taxation of mineral resources. The court determined that royalty paid for mineral rights is a contractual obligation, not a tax, and cannot be classified as a tax merely because it is recoverable as arrears. It upheld that the power to tax mineral rights lies with state legislatures und...