PANAJI
The cess came into effect many years ago, but this issue has been a recent bone of contention between Vedanta and the transport department.
Sources revealed that the recent notice has its origins in another notice sent by the transport department to Vedanta in June this year, asking the company to provide information about coal/coke that was procured and transported by it.
Vedanta in its reply stated that it had transported 2,77,178 tonnes of coal/coke between April and June 2016.
This notice resulted in another notice by the transport department asking Vedanta to pay Rs 1.38 crore cess due on account of movement of coal/coke between April and June this year. Vedanta approached the high court, stating that they weren’t given a hearing before the demand notice was issued to them.
Meanwhile, the high court said that the demand notice sent by the transport department to Vedanta be treated as show-cause notice. Subsequently, the hearing took place before the transport department.
At this hearing, it is learnt that Vedanta stated that coal/coke is transported through barges on waterways, and hence cess is not payable as it applicable only on movement through roads.
The transport department stressed that the cess is payable because as per the Act it is applicable on all carriers transporting material. And based on this, the transport department has now sent a notice to Vedanta to pay Rs 1.38 crore cess.
