Shillong, Feb 23: The state government has decided to invest 30 percent of the total cess collected illegally under the Meghalaya Cement Cess Act, 2010 for purchasing specialized equipment for cancer treatment at the Shillong civil hospital. This was in compliance with the order passed by the Meghalaya High Court on February 9.

Speaking to reporters on Wednesday, Chief Minister Conrad K Sangma said, “We won’t be challenging (the order), we will go ahead with what the court has ordered.”

He said that the Act came out in 2010 and based on that certain cess were being collected from 2010 onwards. “This is of course 12 years back and the court has seen that and they have given us necessary instructions and accordingly the state government will follow those orders,” Sangma added.

Asked if this would not affect the revenue of the state, the chief minister said, “It will as there is a certain amount we have to give but it will go back to a good cause that is fine. We will go ahead and we will invest the 30 percent that the court has asked us to.”

The Meghalaya High Court had declared the Meghalaya Cement Cess Act, 2010 as ultra vires and directed the state government to refund 20 percent of cess collected from two companies and to invest 30 percent of the total cess for the cancer wing of the Shillong civil hospital.

The order was passed by the division bench consisting of Chief Justice Sanjib Banerjee and Justice W Diengdoh, while disposing of the writ petitions filed by the Megha Technical & Engineers Pvt Ltd and Star Cement Limited.

“The refund to the petitioners should be made within four months from date, failing which the amount will carry interest at the simple rate of 6 percent per annum from the date of default till the date of payment,” the bench stated in its order.

The court had further directed the Chief Secretary to file an affidavit within eight weeks and indicate the quantum of the cess that was collected under the impugned Act of 2010.