The Goa government has sent out demand notices to 19 companies to pay up cess dues amounting to Rs208.73 crore for 2014-18 period.
The notices come at a time when the Goa government is facing a severe revenue crunch because mining work has stopped, there is a slowdown in tourism, and GST earnings are lower than expected, forcing the state to resort to unprecedented borrowings.
The government levies a cess of Rs50 per metric tonne on coal or coke transport via the state. Between 2014 and 2018, 42 million metric tonnes of coal and coke was transported through Goa with JSW Steel ferrying the most, at 31 million metric tonnes during the period.
JSW Steel also owes the state government Rs156.35 crore, making up more than three-fourths of the total dues demanded by the state government from the 19 companies.
Partner company JSW Energy too owes the state government Rs12.66 crore having transported 2.5 million metric tonnes of coal during the same period, being the second largest importer.
Fresh demand notices were sent to the JSW Group by the government earlier this month, giving the company fifteen days to pay up their dues.
The cess is being levied since 2006 when the Goa Rural Improvement and Welfare Cess Act came into force and is levied on a host of material, including iron ore, other ores, hazardous and inflammable material, besides coal and coke. What initially began at the rate of Rs5 per tonne of coal or coke is currently levied at the rate of Rs50 per tonne.
{{/usCountry}}The cess is being levied since 2006 when the Goa Rural Improvement and Welfare Cess Act came into force and is levied on a host of material, including iron ore, other ores, hazardous and inflammable material, besides coal and coke. What initially began at the rate of Rs5 per tonne of coal or coke is currently levied at the rate of Rs50 per tonne.
{{/usCountry}}The cess is levied to “promote the welfare of the people residing in the rural areas affected by the movement of carriers transporting (hazardous) material on public roads’. It was later expanded to include rail as well.
Besides JSW, those who haven’t paid their dues include Sesa Sterlite, a Vedanta Group company that owes Rs11.68 crore, IMM Ispat (Rs10.48 crore), Adani Enterprises (Rs7.15 crore), Vedanta (Rs3.01 crore) and West Coast Paper Mills (Rs2.01 crore).
Among the coal importers, Goa Sponge, Amby Metallic, Goa Carbon, Goa Sponge and Power, Indian Cane Power and Bharat NRE Coke have cleared their dues amounting to ₹6crore.
In a statement, the JSW Group said they have challenged the applicability of the cess before the Goa bench of Bombay high court where the matter is presently pending.
“JSW has filed a writ petition before the Goa bench of the Bombay high court challenging the applicability of the Goa Rural Improvement and Welfare Cess Act, 2000, on goods transported by rail and the issuance of a show-cause notice dated 29th September, 2020, for non-payment of the cess to the extent of INR156.34 crore,” it said in a statement.
The case was heard on preliminary issues in late October where the company defended the challenge on maintainability of the petition by stating that the constitutional vires of the Act was being challenged in the instant case, which did not require the issuance of any particular notice. The matter will be next heard on November 26.