Supreme Court lifts ban on diesel vehicles of 2000cc&above, imposes green cess

Friday, Aug 12, 2016,17:01 IST By Metrovaartha A A A

New Delhi | The Supreme Court today lifted its embargo on registration of high-end diesel cars and SUVs having engine capacity of 2000cc and above in Delhi and National Capital Region on payment of one per cent of the ex-showroom price of such vehicles as green cess.

The apex court said that the one per cent amount, charged as environment protection charge, shall be paid with Central Pollution Control Board (CPCB) which will open a separate account with a scheduled public sector bank. The direction modifying its December 16, 2015 order came on a plea of automobile giants.

The apex court said that the registration of the vehicle would be done by the Regional Transport Officer on the satisfaction that one per cent of the cost of the vehicle has been deposited with the CPCB by the vehicle manufacturers/dealer/sub-dealer. However, a bench headed by Chief Justice T S Thakur left open for adjudication Centre’s opposition that such charge cannot be levied by the court.

The bench also comprising justices A K Sikri and R Banumathi said it will decide later whether green cess can be levied on diesel vehicles of below 2000cc engine capacity. The bench passed the direction after modifying its December 16, 2015 order which was extended on March 31, 2016.