New Delhi, Aug. 14 -- The Supreme Court on August 14 rejected the argument that its July 25 judgment upholding the powers of the states to tax mineral rights should be given prospective effect only. The top court clarified that the levy of tax by the states, based on this judgment, should not operate for a period before April 1, 2005.

The Court also stated that the tax arrears can be paid over a staggered period of 12 years from April 1, 2026, according to legal news platform LiveLaw. The Court also said there should be no levy of interest or penalty for the demand made for the period before July 25, 2024.

A nine-judge constitution bench of the Supreme Court on July 25 ruled, by majority, that states have the power to levy tax on minera...