1989 (10) TMI 53 - SC - VAT and Sales Tax

Whether levy of cess on royalty is within the competence of the State Legislature?

Held that:- It is not in dispute that the cess which the Madras Village Panchayat Act proposes to levy is nothing but an additional tax and originally it was levied only on land revenue , apparently land revenue would fall within the scope of entry 49 but it could not be doubted that royalty which is a levy or tax on the extracted mineral is not a tax or a levy on land alone and if cess is charged on the royalty, it could not be said to be a levy or tax on land and, therefore, it could not be upheld as imposed in exercise of jurisdiction under entry 49 List II by the State Legislature.