SAURASHTRA CEMENT & CHEMICAL INDS. vs UNION OF INDIA

The Supreme Court examined the constitutional validity of Section 9(3) of the Mines and Minerals (Regulation and Development) Act, 1957, asserting that the levy of royalty on minerals is not a tax and that the Union Legislature lacks authority under Entry 54 of List I to enact such a law, which infringes upon the State Legislature's rights under Entry 50 of List II. The Court upheld the validity of the Act, referencing prior judgments including India Cement Ltd. vs. State of Tamil Nadu and State of Madhya Pradesh vs. Mahalaxmi Fabric Mills Ltd., and declined to refer the matter to a larger bench, affirming the established legal position. The Court concluded that the challenges against Section 9(3) were without merit and dismissed the appeals.