Tata Steel on Friday said it had filed a curative petition in
the Supreme Court regarding an apex court ruling on the imposition of tax on
mineral-bearing land.
In a regulatory filing, the company stated, “...we wish to
inform you that the company has today, i.e., January 17, 2025, filed a curative
petition before the Hon’ble Supreme Court of India, praying for the invocation
of the extraordinary jurisdiction of the Hon’ble Supreme Court of India under
Order XLVIII, Rule 1 of the Supreme Court Rules, 2013, in respect of the order
dated September 24, 2024, passed by the Constitutional Bench of the Hon’ble
Supreme Court of India in Karnataka Iron & Steel Manufacturers Association
vs. Mineral Area Development Authority & Another.” A curative petition
is a legal remedy that allows the Supreme Court to reconsider a final judgment
in exceptional circumstances.
On July 25, 2024, a nine-judge Constitution Bench of the Supreme
Court ruled that states have the power to levy cess on mining and mineral-use
activities. In August 2024, the court allowed states to collect dues
retrospectively from April 1, 2005. Furthermore, the Supreme Court dismissed a
batch of review petitions filed by the Centre and others in September 2024. Tata
Steel is praying that the Supreme Court reconsiders its judgment dated July 25,
2024 and August 14, 2024, in the matter of legislative authority of the states
to impose tax on minerals.
Tata Steel has captive mines in Jharkhand and Odisha.
The state of Odisha enacted the
Orissa Rural Infrastructure and Socio-Economic Development Act, 2004 (ORISED
Act), effective February 1, 2005, levying tax on mineral-bearing land.
Subsequently, Tata Steel received demands amounting to Rs 129
crore for its mines in Odisha. Tata Steel contested this in the Odisha High
Court, which quashed the demands. However, Odisha appealed in the Supreme
Court, and the matter regarding the legislative authority of states to tax
minerals was referred to the Constitution Bench.
While announcing its Q2FY25 results, Tata Steel stated that it
was in the process of filing a curative petition with the Supreme Court and was
in active discussions with state authorities on the way forward.