Allowing States To Tax Minerals Will Lead To Unhealthy Competition Among Them, Cause Price Rise : Justice Nagarathna In Dissent

Justice B.V. Nagarathna dissented from the Supreme Court's majority ruling that royalty under the MMDR Act is not a tax. She argued that treating royalty as a non-tax would enable states to impose additional taxes on mineral rights, leading to unhealthy competition and price increases. This could disrupt uniform mineral development, causing economic imbalance, black marketing, and adverse impacts on the national economy. The case originated from conflicting Supreme Court rulings on state taxation rights over mineral royalties under the MMDR Act.