The Supreme Court, in an 8:1 majority verdict by a nine-judge Constitution bench, has ruled that states have the legislative competence to levy taxes on mines and minerals bearing lands under the Constitution. Chief Justice DY Chandrachud, along with seven other justices, concluded that the Parliament does not have the power to tax mineral rights. The court also held that royalty payable on minerals under the Mines and Minerals (Development and Regulation) Act, 1957, is not a tax but a form of contractual payment. This decision overturns a 1989 verdict by a seven-judge Constitution bench, which had held that royalty on minerals is a tax. The Centre has urged the Supreme Court to make the verdict prospective. This ruling is seen as a setback for miners.