New Delhi: SC Wednesday appeared firm in its view that though the Centre cannot completely take away states’ taxation powers through a Parliament-enacted law, it can impose limits on the extent of taxation.
Reputed lawyers and constitutional experts, including Harish Salve, A M Singhvi, attorney general R Venkataramani, solicitor general Tushar Mehta, Arvind Datar, Darius Khambata, A K Ganguly, S K Bagaria, and additional solicitor general Aishwarya Bhati, attempted to weave a constitutional fiction that Mines and Mineral (Development and Regulation) Act occupies the field, ousting states’ power to impose tax on matters related to major minerals, as well as mineral-bearing lands.
But a bench of CJI D Y Chandrachud, and Justices Hrishikesh Roy, A S Oka, B V Nagarathna, J B Pardiwala, Manoj Misra, Ujjal Bhuyan, Satish C Sharma and Augustine G Masih remained firm on the literal interpretation of Entry 50 of State List, which provides “taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development”.
Speaking for the bench, CJI Chandrachud said, “Power to limit state’s power to levy tax on minerals does not transfer power to tax minerals to the Centre. We can’t restrict neither the powers of Parliament nor that of state legislatures.”
The arguments will conclude on Thursday with senior advocate Rakesh Dwivedi’s rejoinder on behalf of states.
