Supreme Court Lifts Diesel Car Ban; 1 Percent Environment Cess to Be Paid in Return

Supreme Court has lifted the ban on registration of diesel vehicles with engine capacity of over 2000cc in Delhi-NCR. The court has directed that all auto manufacturers, dealers or buyers will have to deposit one percent environment of ex-showroom price of the affected vehicles as environment cess.

The decision by Supreme Court comes at a time when auto manufacturers have been criticising the decision made on December 11,2005 that banned registration of diesel-run vehicles in Delhi-NCR as these vehicles were considered to be a major contributor to the rising levels of pollution in the city. Supreme Court later ordered that ban would only imply on SUVs and cars that have an engine capacity of over 2000 cc and above.

The Supreme Court said that the cess is to be deposited before Central Pollution Control Board which will open a separate account in a PSU bank. It added that it will decide whether green cess can be levied on diesel vehicles of below 2000 cc engine capacity later.

(With inputs from agencies)