Welcome to CIMReviews.com, the ultimate destination for the latest in Construction, Infrastructure, and Mining in India. Dive into expert analyses, updates on cutting-edge technologies, and insights into government initiatives shaping the industry. Our content is curated by seasoned professionals, offering reliable information for industry veterans and newcomers alike. Stay informed and ahead of the curve with every visit to CIMReviews.com.
Recent Posts
Anyflix Media And Entertainment Private Limited First Floor, Worldmark1, Aerocity, New Delhi – 110058 GSTIN = 07AASCA2022K1ZN
Centre seeks review of SC verdict allowing states to levy mining cess
September 16, 2024
0
The Centre is challenging the Supreme Court’s 8:1 verdict, which granted states the power to impose cess on mining activities, and the August 14 judgment, which allowed retrospective
The Centre is challenging the Supreme Court’s 8:1 verdict, which granted states the power to impose cess on mining activities, and the August 14 judgment, which allowed retrospective dues collection. The Court has announced a 12-year staggered payment schedule for tax demands starting from April 1, 2026.The court waived interest and penalty demands made on or before July 25, 2024. The Centre has invited Madhya Pradesh as a co-petitioner to review the July 25 judgment in an open court hearing. Advocates for mineral-rich states seek early listing of pleas.
A nine-judge bench, consisting of Chief Justice Chandrachud, Justices Roy, Oka, Nagarathna, Pardiwala, Misra, Bhuyan, Sharma, and Masih, ruled that states can impose cess on mining activities and that mining operator royalty is not a tax. The Supreme Court has ruled that states’ power to tax is not limited by the 1957 Mines and Minerals Act. The ruling will have either a retrospective effect or prospective effect. Advocates argue for retrospective application, while others argue for prospective effect, arguing for a “cascading effect” on prices.
The 2015 amendment to the Mines and Minerals (Development and Regulation) Act will affect many industries, including public sector undertakings, leading to the retrospective application of a judgment affecting bid rates and operational expenses, potentially resulting in new litigations. The financial demands from retrospective levies could potentially surpass the net worth of many companies, potentially leading them towards bankruptcy.