STATE OF ORISSA vs STEEL AUTHORITY OF INDIA

The Supreme Court addressed the issue of royalty payment under Section 9(1) of the Mines and Minerals (Regulation and Development) Act, 1957, determining that the lessee is liable to pay royalty only on the quantity of minerals extracted after processing, not on the unprocessed quantity. The Court upheld the High Court's ruling that a distinction must be made between minerals removed from the mine and those processed, clarifying that wastage during processing does not incur royalty. Consequently, the demands for royalty on unprocessed minerals were quashed.