On Friday, The Supreme Court of India removes its ban on registration of high-end diesel cars and SUVs having engine capacity of 2000cc and above in Delhi and NCR on payment of 1% of the ex-showroom price of such vehicles as green cess.
The Supreme court said that the 1% tax charged as environment protection charge. It shall be paid with Central Pollution Control Board which will open a separate account with a scheduled public sector bank.
The Supreme court of India said that the registration of the vehicle would be done by the RTO on the satisfaction that 1% of the cost of the vehicle has been deposited with the Central Pollution Control Board by the vehicle dealers/sub-dealers/manufacturers.
Chief Justice of Supreme court T S Thakur left open for adjudication Centre’s opposition that such charge cannot be levied by the court.
A bench of justices R Banumati and A K Sikri said that it will decide later whether green cess can be levied on diesel vehicles of below the 2000 cc engine capacity.
The Supreme court was hearing the plea which was filed by the luxury car maker Mercedes-Benz. They are offering to pay 1% green cess in a bid to overcome the ban on registration of diesel vehicles with engine capacity up to or more than 2000 cc in Delhi and NCR.
Mohan Parasran who is the Senior advocate and former solicitor general had appeared for Mercedes. He had said that the company has offered to pay 1% of the ex-showroom price of these cars as green cess on being permitted to resume sales in Delhi and NCR.
Earlier, Mercedes had said that it would launch petrol versions of all its models sold in India by September 2016.
The Ministry of Heavy Industry and Public Enterprises supported the automobile giants’ bid for modification of the order, but the ministry had opposed the court-mandated imposition of green cess on buyers of big diesel cars and SUVs.
Earlier, on 29th June, the court had said it was open to lifting the embargo on registration of heavy diesel vehicles in Delhi and NCR subject to a levy of one-time environment compensation cess.
