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Supreme Court to lift ban on Diesel Car Registration

Snapshot: The lifting of ban is subjected to the levy of a one-time environment compensation cess.

Now here is a good news for the carmakers and the people who were not deprived of big diesel vehicles, as Supreme Court said that it was open to lifting the ban on registration of diesel vehicles above 2000cc vehicles in Delhi-NCR, subject to the levy of a one-time environment compensation cess. The apex has asked the lawyers representing auto companies to research over the possibility of levying the one time cess at the time of registration.

While a bench comprising Chief Justice T S Thakur and Justices A K Sikri and R Banumathi said, "We are inclined to allow registration. We are open to the registration subject to some kind of one-time cess."

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During the hearing, the bench asked a battery of senior lawyers including Gopal Subramanium and Gopal Jain, appearing for automobile majors, to explore possibility of levy of green cess at the time of registration of diesel cars and SUVs.

In December 2015, the apex court announced many measures to curb the rising pollution levels in Delhi and national capital region that included ban on the registration of diesel SUVs and cars with engine capacities of 2,000cc and above until March 31, 2016. Later, the ban was extended until further notice.

While it is a good news for the auto manufacturers but this means that buyers will have to shell out some extra bucks on their next purchase, let it be anything from the Mercedes-Benz product line- to the recently launched Toyota Innova Crysta. The court did point out that the one-time environment cess will be levied with regard to the showroom price and the amount of cess can be worked out upon.

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