The Wire Staff 
New Delhi: The Supreme Court on Wednesday (August 14) declined pleas by the central government and assesses to let State Legislatures to tax mines and minerals rights only with prospective effect.
A nine judge bench of the Supreme Court had on July 25 upheld the state government’s power to tax mines and minerals.
The Constitution Bench headed by Chief Justice of India DY Chandrachud on Wednesday (August 14) declared that States could levy tax on mines and mineral rights from April 1, 2005. Demands of tax would not operate for transactions prior to this court-off date, reported thehindubusinessline.com.
“We have rejected the submission that the judgment should not be applied retrospectively. But we have laid down certain conditionalities like there is no interest or penalty. The payment is staggered over 12 years and there would be no tax demands for transactions prior to April 1, 2005,” said Chief CJI Chandrachud.
Earlier, the majority of the bench had come to the conclusion that state governments had the power to levy tax under both Entry 49 and Entry 50 of the State List.
The majority said that parliament cannot not invoke “residuary powers” exercised under Entry 97 of the Union List to restrict a state’s taxing power.