Business Line reported that Tata Steel has moved the Supreme Court against the Covid pandemic cess levied by the Jharkhand government on the mineral bearing land and the apex court has accepted the petition challenging the right of the state government rights to levy such a tax. In July, Jharkhand government through an Ordinance levied a cess of INR 10 on every tonne of coal dispatched and INR 5 a tonne on iron ore sold. Cess on per tonne of bauxite, limestone and manganese was fixed at INR 20, INR 10 and INR 5.
The Cabinet approved the promulgation of the Jharkhand Mineral Bearing Land (Covid-19 Pandemic) Cess Ordinance 2020 to shore up revenue for the State. The notification said “Circumstances exist which render it necessary to take immediate action to promulgate an Ordinance to provide the levy of cess on mineral bearing land for the rehabilitation/employment of labourers/ migrant labourers, creating infrastructures in the field of cottage/village Industries, MSME mitigating the hardships caused due to loss of jobs, augmenting the existing health infrastructures and for other necessary purposes in Jharkhand arising out of disaster by way of Covid pandemic.”