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(By G.R.SWAMINATHAN, J.) Heard both sides.

2.The writ petitioner is a Central Government undertaking. It is one of the Navaratnas. It is a producer of lignite and peat. Section 83 of the Finance Act, 2010 provided for levy of “Clean Environment Cess” on certain goods for the purpose of financing and promoting clean environment and energy initiatives, funding research in that area and for related purposes. Chapter VII of the said Act dealing with CES is as follows :

“Clean Environment Cess

83. (1) This Chapter extends to the whole of India.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

(3) There shall be levied and collected in accordance with the provisions of this Chapter, a cess to be called the [Clean Environment Cess], as duty of excise, on goods specified in the Tenth Schedule, being goods produced in India, at the rates set forth in the said Schedule 1[for the https://www.mhc.tn.gov.in/judis ( Uploaded on: 17/02/2026 03:53:14 pm ) purposes of financing and promoting clean environment and energy initiatives, funding research in the area of clean environment or clean energy, or for any other purpose relating thereto].

(a) the manner of assessment, collection and utilisation of the cess under sub-section (6) of section 82;

(b) any other matter relating to the cess under sub- section (6) of section 82.

(3) Every rule made and every notification issued under this Chapter shall be laid as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification, or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or https://www.mhc.tn.gov.in/judis ( Uploaded on: 17/02/2026 03:53:14 pm ) annulment shall be without prejudice to the validity of anything previously done under that rule or notification.” The goods produced by the writ petitioner attracted Clean Environment Cess.

3.Pursuant to the rule-making power conferred under Section 84 of the Act, Clean Environment Cess Rules, 2010 were issued by the Central Government to deal with collection and assessment of CEC, the manner of its payment, maintenance of records and imposition of penalty. In terms of the power conferred under Section 83(7) of the Act, the impugned notification dated 22.06.2010 was issued. It reads as follows :