PIL Against Centre's Misuse Of Clean Energy Cess Of 86K Crores Towards GST Shortfall To States: SC Asks Petitioner To Approach Appropriate Forum [Read Petition]

The Supreme Court on Thursday granted liberty to withdraw and move appropriate forum in a PIL against the diversion and mis-utilization of the funds by the Centre lying in the National Clean Energy Fund ("NCEF"), which were collected as a cess on coal under the Finance Act, 2010, for clean energy initiatives, to compensate States under the Goods and Services Tax ("GST")."We don't entertain these petitions immediately under Article 32. We will give you the chance to move the HC", said Justice D. Y. Chandrachud to Senior Advocate Menaka Guruswamy for petitioner Atul Gulati. Permission to withdraw the plea was granted so as to enable the petitioner to take recourse to appropriate remedies as are available in law.The instant petition also prayed that the Respondents may be directed to use the said funds appropriately and proactively on clean energy initiatives, including but not limited to the manner in which recommendations have been made by various committees in this regard.Further, a declaration was sought that section 8 and section 10 of the Goods and Services Tax (Compensation to States) Act, 2017 to the extent it levies & imposes and credits the proceeds of the cess appearing at Sl. No. 3 of the Schedule to the 'Goods and Services Tax Compensation Fund' and directs its usage for the purposes specified in section 8 of theGoods and Services Tax (Compensation to States) Act, 2017, as illegal and unconstitutional and redirect and return the collected amounts towards the NCEF and the funds be used towards its intended purpose(s) including towards funding research and innovative projects in clean energy technologies, development activities towards promoting clean(er) sources of energy and thus a clean(er) environment to the citizens."The intent and purpose of an un-lapsable fund has been abrogated by usurping a special fund i.e. National Clean Energy Fund ("NCEF") collected through a special cess, to the Consolidated Fund of India in blatant violation of law. It is respectfully submitted that the degradation of the environment and air pollution in the country and the world is an ongoing and unstoppable activity, much due to need of power in our daily lives and other industrial activities", it urged.It was contended that due to the constant and unstoppable nature of degradation a need was felt and it was duly recognised by world leaders that unless we take proactive steps in researching and implementing innovative solutions, well ahead in time, it will not be possible to reverse the clock of environmental degradation."Admitting and recognising the fact that need of power by the civilisation will continue and we will be constrained to exploit the non-renewable and clearly harmful sources of power till we are able to shift the dependency on coal and other polluting sources of power, it was well recognised that the imminent need is to take such steps to not only contain the ongoing damage to the environment but also to be able to reverse the damage caused so far. One of the many funds created for this purpose has been the NCEF", it was urged.The petition averred that it is well known that use and burning of coal or similar sources of power is and will continue to cause immense damage to the environment and it is imperative that funds collected for the purposes of reversing such irreversible damage must be used for its intended purposes only."However, in case the said funds are not utilized for the specific purposes, especially to fund clean energy sources, the same results in grave violation of the Fundamental Rights of the citizens of India to enjoy a clean environment, including that of the Petitioner", it submitted, adding that the Apex Court has time and again taken due cognizance of the need to protect the environment and also sought clarifications and status reports from government agencies as to implementations of steps and activities undertaken for utilisation of certain funds specifically collected for environmental protection."This Hon'ble Court has in certain occasion levied and directed the collection of fines (in illegal mining cases) and in consultation of expert bodies like EPCA and CEA directed certain steps (for eg. non-burning of coal as fuel, ban on diesel vehicles, revising emission standards) to be taken for protecting the environment", the petitioner advanced.Finally, it was stressed that there is an urgent need of developing an alternative clean(er) fuel as source of energy in daily and industrial use. Accordingly, it is crucial that special cess collected and funds garnered, such as the NCEF, are spent for the purposes they were collected. It is respectfully submitted that any diversion of its funds will not only cause grave impediment in ongoing and planned activities towards developing and supporting clean energy initiatives, it will continue to increase pollution in the environment."Thus, the appropriate usage of the NCEF is in line with the polluter pays principle, the precautionary...

PIL Against Centre's Misuse Of Clean Energy Cess Of 86K Crores Towards GST Shortfall To States: SC Asks Petitioner To Approach Appropriate Forum [Read Petition]

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