Cess and Other Taxes on Minerals (Validation) Act 1992 — The case involves the Mineral Area Development Authority (MADA) and the Steel Authority of India (SAIL), focusing on the validity of state tax demands on mineral rights — Whether the judgment in MADA should be applied retrospectively or prospectively, impacting tax demands and commercial transactions — Petitioners argue for prospective application to avoid retrospective tax burdens on end consumers and commercial disruptions — Respondents argue that prospective overruling should not apply to tax legislation, emphasizing the public interest and financial stability of states — The court rejected the prospective application of the MADA judgment, allowing states to levy taxes but with conditions to mitigate financial burdens on assesses — The court emphasized the need to balance financial interests of states and assesses, avoiding retrospective tax demands before April 2005 — The court applied the doctrine of prospective overruling to ensure equitable outcomes and financial stability — The court provided a pragmatic solution to reconcile conflicting interests, allowing tax demands with staggered payments and waived interest for the period before July 2024.
2024 INSC 607 SUPREME COURT OF INDIA 8 JUDGES BENCH MINERAL AREA DEVELOPMENT AUTHORITY AND ANOTHER — Appellant Vs. M/S STEEL AUTHORITY OF INDIA AND ANOTHER ETC. — Respondent (…