In Brief
The State of Bihar sought enhanced royalty on minerals extracted from the Pandai river basin at the rate of Rs.100 per cubic metre, applied retrospectively from 1 April 2001 (when the Notification dated 24.03.2001 took effect) rather than from 26 December 2001 (when specific areas were identified). The High Court limited royalty to the latter date, reasoning that lessees needed prior notice of affected areas to pass costs to purchasers. The Supreme Court held that the 26 December 2001 notification was merely clarificatory—identifying areas the earlier notification already contemplated—and therefore had retrospective effect. Clarificatory legal instruments, not being retrospective changes but declarations of existing law's meaning, do not require express statutory authorization. The respondents were liable to pay enhanced royalty from 1 April 2001.
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