What is the significance of State Legislatures' power to levy tax on mines and quarries according to the Supreme Court
Supreme Court states that the power of State Legislatures to levy tax on mines and quarries cannot be limited by Parliament’s MMDR Act, as royalty is not considered a tax.
- State legislatures have the exclusive power to levy taxes on mines and quarries within their jurisdiction.
- This power of state legislatures to impose taxes cannot be restricted or limited by the Mineral Mines and Development Regulation (MMDR) Act passed by the Parliament.
- According to the Supreme Court, royalties imposed on mines and quarries are not considered as taxes, but rather as a payment for the use of natural resources.
- State legislatures can determine the rates and collection methods for levying taxes on mines and quarries based on their own laws and regulations.
- This ruling ensures that states have the authority to generate revenue from mining activities within their boundaries without interference from central legislation.
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11 months ago