Power of State Legislatures to levy tax on mines, quarries: Supreme Court's stance
Learn about the Supreme Court's viewpoint on State Legislatures' authority to impose taxes on mines and quarries, and its distinction of royalty from tax.
- The Supreme Court has recognized the authority of State Legislatures to levy taxes on mines and quarries as per Entry 50 of List II of the Seventh Schedule of the Constitution.
- The Court has distinguished between royalty, which is a payment for the extraction of minerals, and tax, which is a levy imposed by the State for revenue generation.
- The imposition of tax on mines and quarries by State Legislatures must be within the framework of the Constitution and should not impede the smooth functioning of mining activities.
- State Legislatures are empowered to levy taxes on the basis of actual production or the value of the minerals extracted from mines and quarries, subject to judicial review.
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9 months ago