JSW Steel Challenges Cess Demand in Mumbai High Court Goa Bench
JSW Steel Challenges

JSW Steel Challenges Cess Demand in Mumbai High Court Goa Bench

Media reported that JSW Steel has filed a petition before the high court of Bombay at Goa challenging the show cause notice issued by the state

government for non payment of cess of around INR 156 crore for transportation of coal & coke from Mormugao port. The company has also challenged the constitutional validity of the Goa Rural Improvement and Welfare Cess Act, 2000. The matter is likely to come up for hearing on November 26.

Goa government has directed JSW steel to pay a fee of INR 156.3 crore for transporting coal through the state. According to Mormugao Port Trust’s records, JSW Steel transported 31.29 million tonnes of coal between 2014 and July 2018 from Goa to the firm’s steel plants in Karnataka. The state has levied a cess of Rs 50 per tonne of coal transported, which works out to INR 156.3 crore, said the directorate of transport. In the demand notice on November 9, the government threatened the firm’s officials with a jail term of two years if the amount is not paid in 15 days.

Goa government introduced the Goa Rural Improvement and Cess Act, 2000, and the cess has been levied on the owner of the goods being transported since February 2006. Under the 2001 law, owners of all carrier transporting material are supposed to pay a cess under schedule-I, with the amount going towards rural improvement.

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