Chotanagpur Chemical and Industries Pvt. Ltd. v. State of Bihar
1993-09-23
S.B.SINHA
body1993
DigiLaw.ai
JUDGMENT S. B. Sinha, J. -In this writ application the petitioner inter alia has prayed for issuance of an appropriate writ directing the respondents to pay State Capital Subsidy as also interest free loan as also the power in terms of clauses 5, 7 and 9 of the Resolution no. 13730 dated 1st September, 1986. 2. The fact of the matter lies in a very narrow compass. 3. The petitioner no. 1 is a small scale industry which was registered in the office of the District Industry Officer, Hazaribagh. Previously, the petitioners used to manufacture non-ferric alumina the capacity of which was 500 Metric Tonnes per annum. Petitioner no. 1, however, decided to increase and diversify the production from 500 M.T. to 2640 M.T. per annum for the purpose of manufacturing non-ferric allumina. According to the petitioners in view of the fact that as it has also expanded or diversified its business, it was entitled to the benefit of the policy decision adopted by the State Government in its resolution no. 13730 dated 1.9.1986 as contained in Annexure 1 to the writ application. 4. Clauses 5, 7 and 9 as also clause 16 of the aforesaid resolution read thus : "5. Capital Investment Subsidy-Some districts of this State have been categorised as 'A', 'B' and 'C' backward districts by the Government of India vide their notification issued on 27th April, 1983. In these districts, Central Capital Investment Subsidy is admissible to the industrial units. In the remaining districts, as also in category 'C' districts, State Capital Investment subsidy is admissible." 7. Relief in respect of consumption of electric power.- (1) Exemption from payment of minimum guarantee charges. - Small scale industrial units will remain exempted from the payment of minimum guarantee charges for a period of 5 (five) years from the date of their going into production. However, the maximum admissible amount of exemption will not exceed Rs. 1,000/-(one thousand) in one year. The amount in excess of Rs. 1,000 (one thousand) per annum, if any, will continue to be borne by the entrepreneurs. (2) Exemption from payment of electricity duty. - Large, medium, small and tiny industrial units will be exempted, to the extent of 25 percent or Rs. 1 (one) lakh whichever is less per annum, from payment of electricity used for production purpose. (3) Power subsidy.
1,000 (one thousand) per annum, if any, will continue to be borne by the entrepreneurs. (2) Exemption from payment of electricity duty. - Large, medium, small and tiny industrial units will be exempted, to the extent of 25 percent or Rs. 1 (one) lakh whichever is less per annum, from payment of electricity used for production purpose. (3) Power subsidy. - (a) Small scale and tiny industrial units will get subsidy at the rate of 15 (fifteen) paise per unit of the power consumed by them in the process of manufacture for a period of 5 (five) years from the date of commencement of their production after 1st September, 1986. (b) Large industrial units will get subsidy at the rate of 9 (nine) paise per unit and medium units at the rate of 12 (twelve) paise per unit in respect of power consumed in the process of production for 5 (five) years from the date of production on/or after 1st September, 1986 or for the unexpired period of five years from the date of production if the production commenced prior to 1st September, 1986. (4) The benefits mentioned in 7.1, 7.2 and 7.3 (a) (b) will not be available to the Atta Chakkies, Hullers, Cold storage, Cinemas and Hotels. 15. Incentive for Expansion or Diversifications. -Incentives will be allowed to old units for expansion or diversification. Expansion implies an increase of at least 25 percent of the rated capacity of the unit for the item for which it is registered. Diversification implies production of a new item or items not envisaged in the project report on which such loan was sanctioned or not capable of being• manufactured by existing machinery. The incentives will be available on the following conditions : (a) The expansion/diversifications programme has been duly registered and approved by the competent authority prescribed by the Government. (b) The facilities relating to sales tax as mentioned in paragraphs 9.1 and 9.2 will be available for period of 5 (five) years from the date shall be limited to the extent of expansion/diversification. (c) In respect of incentives relating to power consumption, incentive will be admissible on the additional consumption of power relating to production purposes consequent upon expansion/diversification of the unit. The facility will be available for a period of 5(five) years from the date of commencement of production after expansion/diversification and shall be limited to the extent of expansion/diversification.
(c) In respect of incentives relating to power consumption, incentive will be admissible on the additional consumption of power relating to production purposes consequent upon expansion/diversification of the unit. The facility will be available for a period of 5(five) years from the date of commencement of production after expansion/diversification and shall be limited to the extent of expansion/diversification. " 5. In, this case a counter affidavit has been filed on behalf of respondent no. 2. In the said counter affidavit it has been stated that the claim of the petitioner for grant of capital subsidy was taken up by the State Level Committee in its meeting dated 22.8.1991 but the decision was deferred by the Committee awaiting the report regarding the proposed expansion with a copy of the project report. It was further submitted that so far as interest free loan is concerned, no amount was available in the year 1991 as only a sum of Rs. 70 lacs was made available under the said scheme during the year 1991-92 whereas a total sum of Rs. 440 lacs has been sanctioned during the year 198990, 1991-92 which is pending disbursement. 6. Mr. Modi, learned counsel appearing on behalf of the petitioners has drawn my attention to the decisions of this Court in M/s Bajrang Udyog, C.W.J.C. No. 1395 of 1991 (R), disposed of on 2.9.1991, a Division Bench decision of this Court in M/s Alac Engineering Pvt. Ltd. vs. State of Bihar & ors., CWJC No. 463/91 (R) disposed of on 6.1.1992 and Sri Marooti (Spl) Smokeless Fuel VS. State of Bihar & ors., CWJC No. 1050 of 1991 (R) [ 1993 (1) PLJR 277 and submitted that this case is squarely covered by the aforementioned three decisions. 7. Learned G. P., however, submits that against the decisions of Court, a L.P. A. has been tiled before this Court. However, we had occasions to see the records of other cases wherein it was accepted by learned counsel on behalf of the State that the aforementioned L. P. A. has been filed as allegedly a factual error crept in the date of production. In this view of the matter, in my opinion, the petitioner is entitled to the benefits in terms of the aforementioned Resolution no.
In this view of the matter, in my opinion, the petitioner is entitled to the benefits in terms of the aforementioned Resolution no. 13730 of 1st September, 1986 as contained in Annexure 1 to the writ application, in as much as, the petitioners' case is squarely governed by the aforementioned three decisions. Learned G.P. 1, however, drew my attention to the counter affidavit and submitted that the matter relating to grant of all facilities in terms of the aforementioned resolution is pending before the State Level Committee. 8. In this view of the matter, the respondents including the State Level Committee are hereby directed to dispose of the representation of the petitioner as early as possible and pay all the lawful dues to the petitioner in terms of the policy decisions of the State of Bihar as contained in Annexure 1 to the writ application as early as possible and preferably within a period of four months from the date of receipt of a copy of this order. 9. This application is, therefore, allowed with the aforementioned observation. However, in the facts and circumstances of the case, there will be no order as to costs.