No levying of cess, oil companies told

LUDHIANA, Nov 25: Oil companies, which have been charging one per cent cess at source and supplying to petrol pumps throughout the state, have been directed by the Financial Commissioner, Excise and Taxation, C.L. Bains to stop charging the cess. They have been ordered to deposit the collected amount with the government.

This was disclosed by Ludhiana Deputy Commissioner Arun Goel. He said that he had directed petrol pumps in the city to stop charging the cess from Thursday. He added that after petrol pump owners had expressed their inability to stop charging cess because it was being charged at source by the oil companies, he had contacted the Financial Secretary, who had contacted Bains and the order had been issued.

The order brings to an end a series of decisions taken by the government regarding the cess. The oil companies have been charging cess at source on diesel and petrol from November 8 because the order was notified on October 15. The government first ordered that the cess would be charged from Nov 11, without clarifying what would happen to the amount already collected.

On November 17, following pressure by traders and industrialists, the government decided to stay the cess. Inexplicably, no written orders were issued to the oil companies for the next eight days while consumers kept paying the excess amount.