Highlights of SC verdict in mineral royalty case

    New Delhi, Jul 25 (PTI) Following are the highlights of the Supreme Court's verdict on Thursday which said legislative power to tax mineral rights vests with the states and the royalty paid on minerals is not a tax:
    * SC, by a majority of 8:1, holds states have legislative power to tax mineral rights.
    * SC says royalty paid on mineral-bearing land is not tax.
    * Parliament does not have the legislative competence to tax mineral rights under Entry 54 of List I of the Constitution, says SC.
    * SC says Parliament, however, can still legislate to impose "any limitations" on states' power to levy tax on mineral rights.
    * SC overruled a 1989 judgement of a seven-judge bench, saying the observation in that verdict to the effect that royalty is a tax is "incorrect.
    * SC judge Justice B V Nagarathna, in her dissenting verdict, says royalty is in the nature of tax and the Centre does have the power to levy it.

(This story has not been edited by THE WEEK and is auto-generated from PTI)