In Brief
The State of Bihar challenged a High Court order that had limited retrospective application of a royalty rate enhancement. The respondent lessee extracted minerals (boulder, gravel, shingle used for chips) from Pandai river basin. The State issued a Notification on 24.03.2001 increasing royalty from Rs.50 to Rs.100 per cubic meter, effective 01.04.2001, but noting that identified areas would be separately notified. A second Notification on 26.12.2001 identified the relevant districts. The High Court held the enhanced rate only applied from 26.12.2001. The Supreme Court held the second Notification was merely clarificatory, not substantive, and clarificatory legislation presumptively operates retrospectively. Therefore, the enhanced royalty rate applied from 01.04.2001, not 26.12.2001, and the respondent owed the full amount demanded by the State.
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