Tata Steel has moved the Supreme Court against the Covid pandemic cess levied by the Jharkhand government on the mineral bearing land.

The apex court has accepted the petition challenging the right of the State government rights to levy such a tax, sources said.

In July, Jharkhand government through an Ordinance levied a cess of ₹10 on every tonne of coal dispatched and ₹5 a tonne on iron ore sold. Cess on per tonne of bauxite, limestone and manganese was fixed at ₹20, ₹10 and ₹5.

The Cabinet approved the promulgation of the Jharkhand Mineral Bearing Land (Covid-19 Pandemic) Cess Ordinance 2020 to shore up revenue for the State.

“Circumstances exist which render it necessary to take immediate action to promulgate an Ordinance to provide the levy of cess on mineral bearing land for the rehabilitation/employment of labourers/ migrant labourers, creating infrastructures in the field of cottage/village Industries, MSME.. mitigating the hardships caused due to loss of jobs, augmenting the existing health infrastructures and for other necessary purposes in Jharkhand arising out of disaster by way of Covid pandemic,” the notification said.

Between April and October, the revenue of Jharkhand government had plunged 12 per cent to ₹30,753 crore against ₹35,069 crore logged in the same period last year.

The State’s tax revenues, including excise duty, State GST, stamp duty, land revenue and registrations among others, have dipped by ₹983 crore to ₹7,586 crore.

Though the Central government had allowed mining and steel companies to operate during the Covid lockdown period, metal companies have cut production due to sharp fall in demand. However, the demand has started reviving in the recent times and metal companies have been hiking prices consistently. The user industry has condemned steady rise in steel and other metal prices.

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