Mercedes-Benz India Agrees To Pay Environment Cess To Resume Car Sales


Not so long ago we reported that the Supreme Court is considering to waive off the ban on 2000cc and above diesel cars in Delhi and NCR in exchange for a one-time environment cess on the cars. Weeks later, Mercedes-Benz India, one of the carmakers who were affected by the ban, has now agreed to pay the one-time environmental cess on cars to resume car sales in the region. The Supreme Court today agreed to hear the plea of luxury car maker Mercedes-Benz offering to pay 1 per cent environment cess in a bid to overcome the ban on registration of vehicles with engine capacity of 2000 cc or more in Delhi and NCR.

Senior advocate Mohan Parasaran, appearing for Mercedes, mentioned the plea before a bench comprising Chief Justice T S Thakur and Justices A M Khanwilkar and D Y Chandrachud which posted the matter for hearing on Friday. The former solicitor general said the company has offered to pay 1 per cent of the ex-showroom price of these cars as green cess on being permitted to resume sales in Delhi and NCR.

On July 4, the court had reserved its verdict on pleas seeking modification its order banning registration of diesel-run SUVs and high-end cars with engine capacity of 2000 CC and above in Delhi and National Capital Region (NCR), indicating that such vehicles may be allowed to be registered again on payment of one per cent of ex-showroom price as green cess.

The Ministry of Heavy Industry and Public Enterprises, which supported the automobile giants’ bid for modification of the order, had, however, opposed the court-mandated imposition of green cess on buyers of big diesel cars and SUVs.

Earlier, on June 29, the court had said it was open to lifting the ban on registration of heavy diesel vehicles in Delhi and NCR subject to a levy of one-time environment compensation cess.

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