Court grants interim relief on Clean Energy Cess payments under Finance Act, 2010

The court granted interim relief to the petitioner concerning Clean Energy Cess payments under the Finance Act, 2010. It ruled that no further payment was required for coal stock on which Cess was already paid during the petition's pendency. Verification of Cess payment was ordered, with coercive recovery steps stayed pending verification. The court directed the utilization of credits, electronic return filing, and stayed coercive steps for non-filing. The challenge to the Goods and Services Tax (Compensation to States) Act, 2017, was acknowledged, with respondents directed to file counter affidavits. The case was listed for further hearing.

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Issues:
Challenge to the validity of the Goods and Services Tax (Compensation to States) Act, 2017
Interim relief regarding payment of Clean Energy Cess under the Finance Act, 2010

Issue 1: Challenge to the validity of the Goods and Services Tax (Compensation to States) Act, 2017
The petition raised issues challenging the validity of the Goods and Services Tax (Compensation to States) Act, 2017, similar to another case. The court accepted notice for both respondents, directing the filing of counter affidavits and rejoinders. The case was listed for further hearing on a specified date.

Issue 2: Interim relief regarding payment of Clean Energy Cess under the Finance Act, 2010
The petitioner had paid Clean Energy Cess under the Finance Act, 2010, on coal stock before a certain date. The court ruled that no further payment should be required for the coal stock on which the Cess was already paid during the petition's pendency. However, for coal stock without prior Cess payment, any payment under the impugned legislation would be subject to the petition's outcome. The petitioner would be entitled to a refund if successful. Officers were directed to verify the Cess payment on the petitioner's premises. Coercive recovery steps were stayed until verification. Failure to provide satisfactory proof of prior Cess payment would require payment under the impugned Act. The court issued directions for utilizing credit of Cess already paid and filing electronic returns, staying coercive steps for non-filing until a suitable method was developed by the respondent.

This judgment provides detailed interim relief to the petitioner regarding Clean Energy Cess payments and sets guidelines for utilizing credits and filing returns. It also addresses the challenge to the validity of the Goods and Services Tax (Compensation to States) Act, 2017, highlighting the court's approach to similar issues raised in another case.

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