JSW Energy has filed a petition in the Supreme Court challenging the constitutional validity of the Goa Cess on Products and Substances Causing Pollution (Green Cess) Act, 2013, and its 2014 Rules. The company argues that the Goa Legislative Assembly lacks the competence to enact such environmental legislation, contending that the subject of "environment" falls within the exclusive domain of Parliament under the Constitution. JSW Energy specifically cited the Supreme Court’s ruling in Reliance Industries Ltd vs State of Gujarat, which held that environment-centric levies by states cannot be justified under the "public health" entry in the State List and that such matters are for Parliament to legislate
A Supreme Court bench led by Justice BV Nagarathna declined to hear the petition in its present form but permitted JSW Energy to file a writ petition under Article 32 within a week. The Court also directed that no coercive action be taken against the company for three weeks concerning the assessment notice issued under the Act.
Referring to the Supreme Court’s decision in Reliance Industries Ltd vs State of Gujarat, JSW Energy argued that environmental legislation is a central subject and not within the powers of State Assemblies. The company further revealed that similar notices had been served to its group companies, JSW Steel and South West Port Ltd, and contended that the cess should not be imposed multiple times on the same consignment.
In 2023, the Bombay High Court at Goa upheld the Green Cess Act’s validity, rejecting the claim that environmental pollution falls exclusively under Parliament’s legislative domain.