Goa govt slaps fine of Rs 156 crore on JSW Steel following coal transportation

Goa govt slaps fine of Rs 156 crore on JSW Steel following coal transportation
By: Express News Service | Panjim | Updated: November 24, 2020 10:38:10 am

Bhushan Power case: NCLAT to hear JSW Steel's plea on Oct 14According to officials, the first notice was issued on September 9, 2020 and the second on September 29, both of which received no response from the Company.

For having failed two reminders and a hearing, the Goa government has fined JSW Steel Limited over Rs 156 crore towards unpaid cess under Goa Rural Improvement and welfare cess Act, 2001, following transport of coal.

According to the notice sent by the government on November 9, the company has to pay the amount by November 24.

Under the Rules of the 2001 Act, an owner of all “carrier transporting material” is supposed to pay a cess under schedule I, with the amount going towards rural improvement. The Goa Government has estimated the cost at Rs 50 per ton for the 3,12,69,986 metric ton of Coal transported through Mormugao Port Trust to the plant in Karnataka between the period of July 2014 and July 2018, the notice reads.

According to officials, the first notice was issued on September 9, 2020 and the second on September 29, both of which received no response from the Company. The company also failed to appear in the hearing, and later on October 13 asked for more time citing Covid 19 limitations.

“Whereas under Section 3(1), the Cess payable under the Act shall be assessed and collected, in the case of materials/items extracted or generated within the State, at the point of its extraction /generation/starting, as the case may be, for transportation. In any other case, the Cess shall be assessed and collected at the entry point in the State or such other point as may be notified by the Government,” the notice reads.

The letter has been sent by the South Margao office of Transport to JSW Steel Limited head office in Bombay.

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