SC to decide on royalty payable on minerals
The Supreme Court will decide on an important question of whether the miners should pay royalty on the ore or on the processed mineral extracted from the ore and the decision could impact the states' exchequers to the level of crores of rupees.
By PTI |
NEW DELHI: The Supreme Court will decide on an important question of whether the miners should pay royalty on the ore or on the processed mineral extracted from the ore and the decision could impact the states' exchequers to the level of crores of rupees.
The matter has come up before the apex court in a petition challenging the Rajasthan High Court's judgement that directed the state government to recalculate the royalty payable on lead and zinc metal contained in the ore extracted from the mines by Hindustan Zinc Ltd.
The High Court judgment would have a major effect as it would result in a loss of crores of rupees per month to the state exchequer. Besides, it would have to refund the access royalty which the company had paid under protest on tailings and rejects.
A bench headed by Justice H K Sema while issuing notice to the Centre and Hindustan Zinc asked the state government not to make any recovery till the fresh computation is done in two weeks.
"In the meantime, let the computation of royalty be done by the mining engineer. But, no recovery, if any, on the basis of computation be made," the order stated.
Additional Solicitor General Gopal Subramanium stated that royalty was payable on the ore exploited from the earth and the rate of royalty to be paid for such exploitation had been prescribed in amendments to the Second Schedule of the Mines and Minerals (Regulation and Development Act) 1957.
"Around Rs 125 crore is to be refunded," he added.
According to state, the high court failed to appreciate that prior to the Central government notification dated September 12, 2002 the royalty was charged on the entire quantity of lead/zinc concentrate.
The matter has come up before the apex court in a petition challenging the Rajasthan High Court's judgement that directed the state government to recalculate the royalty payable on lead and zinc metal contained in the ore extracted from the mines by Hindustan Zinc Ltd.
The High Court judgment would have a major effect as it would result in a loss of crores of rupees per month to the state exchequer. Besides, it would have to refund the access royalty which the company had paid under protest on tailings and rejects.
A bench headed by Justice H K Sema while issuing notice to the Centre and Hindustan Zinc asked the state government not to make any recovery till the fresh computation is done in two weeks.
"In the meantime, let the computation of royalty be done by the mining engineer. But, no recovery, if any, on the basis of computation be made," the order stated.
Additional Solicitor General Gopal Subramanium stated that royalty was payable on the ore exploited from the earth and the rate of royalty to be paid for such exploitation had been prescribed in amendments to the Second Schedule of the Mines and Minerals (Regulation and Development Act) 1957.
ADVERTISEMENT
"Around Rs 125 crore is to be refunded," he added.
According to state, the high court failed to appreciate that prior to the Central government notification dated September 12, 2002 the royalty was charged on the entire quantity of lead/zinc concentrate.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
