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Informist, Monday, Apr. 28, 2025

 

 

NEW DELHI – JSW Energy Ltd. on Monday filed a petition in the Supreme Court challenging the constitutional validity of the Goa Cess on Products and Substances Causing Pollution (Green Cess) Act, 2013, and the Goa Cess on Products and Substances Causing Pollution (Green Cess) (Functions and Duties of the Competent Authority, Assessment, Levy and Collection of Cess) Rules, 2014 on the ground that the state lacks legislative competence in enacting such laws. The petitioner also contested the assessment notices issued to it under the Green Cess Act.

 

The apex court asked JSW Energy to file a writ petition under Article 32 of the Indian Constitution and said no coercive action will be taken by the Department of Commercial Taxes, Government of Goa, against the company for three weeks on the assessment notices issued. 

 

The cases have their genesis from South West Port Ltd., a group company of JSW Energy, filing a petition in the Bombay High Court against the 2013 Act and 2014 Rules. South West Port had challenged the state's levy of cess under Section 4 of the Green Cess Act on the company as the handler of coal as goods. After the high court rejected its case, South West Port moved the top court, which was also hearing a similar case, wherein JSW Steel Ltd. and others were also issued some assessment notices.

 

In December 2023, the top court held that as JSW Steel and others had not yet registered under the provisions of the Green Cess Act, it would be just and proper for them to comply with the assessment notices issued by the department. The Supreme Court had said that the department shall proceed to make the assessment and issue a formal demand to the companies and the latter shall pay to an extent of 50% of the said demand while the payment of the remaining 50% of the demand shall remain, pending further orders. 

 

In March, the tax department issued assessment notices to JSW Energy under Section 29 of the Goa Value Added Tax Act, 2005 and Section 4 of the Green Cess Act. In the notices, the department said JSW Energy was liable to pay the green cess for from Apr. 1, 2014 to Mar. 31, 2024. JSW Energy said that the assessment notices issued to it were similar to those previously issued to JSW Steel and South West Port, in as much as they seek to impose liability for the payment of the green cess under the Green Cess Act., regarding same consignment. The green cess on them cannot be levied twice over on the same consignment of products or substances, the petitioner added. 

 

On Monday, shares of JSW Energy ended 1.4% lower at INR 476.20 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Subhojit Sarkar

 

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