SC ends environment cess exemption for essential goods carriers entering Delhi

New Delhi: The Supreme Court has withdrawn a decade-old exemption for commercial vehicles carrying essential commodities from paying the Environment Compensation Cess (ECC) before entering Delhi.

A bench comprising Chief Justice of India (CJI) B R Gavai and Justices K Vinod Chandran and N V Anjaria passed the order on September 26, which was made public recently.

The court held that the earlier exemption, granted in October 2015, was creating "genuine operational difficulties" and undermining the purpose of the levy.

The bench allowed the application of the Municipal Corporation of Delhi (MCD), seeking the removal of "the exemption granted to commercial vehicles carrying Essential Commodities viz. Vegetables, Fruits, Milk, Grains, Egg., Ice (to be used as food item), Poultry Items...laden vehicles from ECC in pursuance to this courts order dated 09.10.2015".

The civic body submitted that on account of the exemption granted by this court, serious difficulties are faced as vehicles are required to be stopped to check whether they are carrying essential commodities or not.

Owing to such requirement, vehicles have to stop for a long time and continuous emission of smoke is caused, contributing to air pollution, it said.

"We find that the difficulty pointed out appears to be genuine. It is indeed difficult to find out a mechanism to verify from the outside as to what goods are being carried in such vehicles. As such, all vehicles are required to be stopped at checkposts and subjected to physical verification, which results in prolonged stoppages and aggravates the problem of air pollution," the bench said.

It said that in any case, the levy imposed is not so high that it would adversely affect the prices to be paid by the common consumers.

"In that view of the matter, we are inclined to allow the said application in terms of prayer clause...," it ordered.

The court passed the order while hearing the 1985 PIL of MC Mehta relating to environmental concerns in Delhi-NCR.

The bench also allowed certified manufacturers to produce green crackers on the condition that they would not be sold in Delhi-NCR without approval.

It asked the Centre to take a fresh look at the absolute ban on the manufacture of firecrackers in Delhi-NCR.

The bench directed the Ministry of Environment, Forests and Climate Change to consult all stakeholders, including the Delhi government, manufacturers and sellers, before arriving at a final decision.