Supreme Court Lifts ECC Exemption For Essential Goods Vehicles Entering Delhi

The Supreme Court has revoked a long-standing exemption that allowed commercial vehicles transporting essential commodities to bypass the Environment Compensation Cess (ECC) when entering the national capital.

A bench led by Chief Justice of India B.R. Gavai, along with Justices K. Vinod Chandran and N.V. Anjaria, issued the order on September 26. The decision, made public recently, overturns the earlier relief granted in 2015, PTI reported. 

The court noted that the exemption, originally intended to facilitate the supply of essential goods, was now causing operational challenges and defeating the purpose of the environmental levy.

The order came in response to an application filed by the Municipal Corporation of Delhi (MCD), which sought to withdraw the exemption for vehicles carrying items such as vegetables, fruits, milk, grains, eggs, ice used for food purposes, and poultry.

The MCD argued that the exemption was creating logistical bottlenecks, as all incoming vehicles had to be stopped and inspected to verify their cargo, leading to delays, traffic congestion, and increased vehicular emissions.

"We find that the difficulty pointed out appears to be genuine," the bench observed. "It is indeed difficult to find a mechanism to verify, externally, the nature of goods being transported. Physical checks result in prolonged stoppages, exacerbating air pollution."

The court further noted that the ECC amount was not substantial enough to significantly impact consumer prices. "In view of the larger public interest, we are inclined to allow the said application," the bench said in its order.

The ruling was passed during proceedings in the long-standing public interest litigation filed by environmentalist M.C. Mehta in 1985, which focuses on pollution control in Delhi and the National Capital Region (NCR).

In the same hearing, the court also addressed the issue of firecrackers. It permitted certified manufacturers to produce green crackers but prohibited their sale in Delhi-NCR without prior approval.

Additionally, the bench directed the Ministry of Environment, Forest and Climate Change to revisit the blanket ban on firecracker manufacturing in the region. The ministry has been asked to consult key stakeholders, including the Delhi government, manufacturers, and vendors, before making a final decision.

With PTI inputs