PANAJI
JSW Energy has moved the Supreme Court challenging the legislative competence of the Goa Legislative Assembly to enact the Green Cess Act and its related rules. The company filed the petition on April 28, questioning whether the subject of ‘environment’ falls within the constitutional jurisdiction of a State legislature.
The power producer has specifically contested the constitutional validity of the Goa Cess on Products and Substances Causing Pollution (Green Cess) Act, 2013, and the corresponding Rules notified in 2014. It has also alleged that Section 4 of the Act is “manifestly arbitrary.”
A Bench headed by Justice BV Nagarathna declined to entertain the petition in its current form but granted JSW Energy the liberty to file a writ petition under Article 32 of the Constitution within a week. The court also ordered that no coercive steps be taken against the company on the assessment notice issued under the Act for a period of three weeks.
In support of its case, JSW Energy cited the Supreme Court’s ruling in Reliance Industries Ltd vs the State of Gujarat, arguing that laws relating to the environment fall under the domain of the Centre, not the states.
The company further submitted that similar notices had been served to its affiliates – JSW Steel and South West Port Ltd (SWPL) – and contended that the cess cannot be levied more than once on the same consignment.
In 2023, the High Court of Bombay at Goa upheld the Goa Cess on Products and Substances Causing Pollution (Green Cess) Act, 2013, while dismissing pleas of companies that challenged the law's constitutional validity.
The companies had argued the nature of the levy and the primary object of the law is “environment” and “environmental pollution”, adding that “environment” falls within the residuary entry and that Parliament has the sole prerogative to legislate over it.
