The Supreme Court on Friday lifted the ban on registration of diesel vehicles above 2000cc in Delhi and NCR. A one per cent cess on ex-showroom price will be levied as green cess on such vehicles, the apex court noted. The cess will likely be passed on to buyers.
The court further said that the one per cent green cess will be deposited before Central Pollution Control Board, which will open a separate account in a Public Sector Undertaking (PSU) bank.
In the meantime, court has kept the issue of levying cess on diesel cars less than 2000cc alive, saying it will examine it later.
The Supreme Court had temporarily banned the sale of large diesel vehicles last year in New Delhi, which had triggered strong protests from car manufacturers. The Central government had thrown its weight behind the auto industries, saying “diesel cannot be termed as an undesirable fuel”.
A Supreme Court bench in January had rejected a plea by automobile manufactures Mercedes, Toyota and Mahindra & Mahindra to lift the interim ban on registration of diesel vehicles of 2000 cc and above saying, “Do your cars emit oxygen? If we find diesel (engines) to be more polluting, you are in trouble.”
The prohibition was imposed by the bench — also comprising Justice A K Sikri and Justice R Banumathi — on December 16 last year after noting that “because of the higher engine capacity, they (diesel vehicles) are more prone to cause higher levels of pollution.”
The bench had observed that it will also consider banning registration of diesel vehicles below 2000 cc at an appropriate stage.