State Govt slaps fine of Rs 156 crore on JSW Steel following Coal Transportation

For having failed 2 reminders & a hearing, the Govt of Goa has fined JSW Steel Limited over Rs 156 crore towards unpaid cess under Goa Rural Improvement & welfare cess Act, 2001, following transport of coal.

According to the notice sent by the Govt on Nov 9, the company has to pay the amount by Nov 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 Govt 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 & July 2018, the notice reads.

According to officials, the first notice was issued on Sept 9, 2020, & the 2nd on Sept 29, both of which received no response from the Company. The company also failed to appear in the hearing, & later on Oct 13 asked for more time citing COVID-19 limitations.

The notice reads, “Whereas under Section 3(1), the Cess payable under the Act shall be assessed & 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 & collected at the entry point in the State or such other point as may be notified by the Government".

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

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