The Supreme Court today clarified that States can recover past tax dues on mineral rights, but not for the period before April 1, 2005. The apex court rejected the argument that its judgment delivered on July 25 upholding the powers of the States to tax mineral rights should be given prospective effect only.

On July 25, the Supreme Court ruled that States have the power to levy tax on mineral rights and that the Mines and Minerals Development and Regulation Act 1957 – does not limit such power of the States. After the judgment was pronounced, the Union and certain assessees made a demand that the judgment should be given only prospective effect.