Luxemburg, 13/09/2006 (Agence Europe) - The European court of First Instance has rejected the appeal by an association of small, independent quarrying companies in the United Kingdom against the European Commission's decision not to raise objections to the introduction of an environmental tax on granulates (Aggregates Levy, AGL) in the Finance Act 2001. The European Commission considered that this tax, and the exemptions provided for, was justified, particularly because of its environmental purpose. The European court upheld the various arguments advanced by the Commission, which considered that the exemptions did not constitute state aid. The environmental tax applies only to granulates, such as sand, gravel and rock, with certain minerals, including slate, shale, ball clay and china clay, exempted. There is also provision for exemption for exports. The AGL was introduced to reduce and rationalise the extraction of minerals commonly used as aggregates, by favouring their replacement with recycled products or exempted virgin materials, says a Court press release.