New Delhi: The Supreme Court will hear on 21 April the petition of state-run ONGC challenging the Andhra government’s right to impose cess on mineral oil and petroleum and natural gas.
The issue has been raised by ONGC and others alleging that the Andhra Pradesh government had no powers to impose cess on mineral oil and petroleum and natural gas.
A bench headed by chief justice K G Balakrishnan will hear the case. Earlier, it had issued notice and stayed the levy of cess.
According to ONGC, the state government had no powers to regulate and tax mineral oil unlike in the case of minerals, and it can only levy fee on a matter covered under Entry 66 of List II - the State list.
The legislation on mineral oil was exclusively the prerogative of the Central government, it said.
“Cess is a tax, The state government has no power to impose such a tax on mineral oils. ... The state government has sought to justify the impugned levy on the purported grounds that it is to be collected to provide and improve infrastructural facilities for exploitation of the mineral resources in the state,” the petition stated.