Pradeep Cement Private Limited v. Jharkhand State Electricity Board
2005-08-25
ALTAMAS KABIR, R.K.MERATHIA
body2005
DigiLaw.ai
ORDER 1. This appeal is directed against the judgment and order dated 14th June, 2005 passed by the learned Single Judge dismissing the writ petition, being WP (C) No. 2248 of 2005, filed by the appellant herein, in which the appellant had claimed exemption from payment of Annual Minimum Guarantee (hereinafter to be referred to as "A.M.G.") charges under the Industrial Policy of 1995. 2. The appellant set up a Cement Manufacturing Unit and applied to the Department of Industries for grant of Industrial License under the Small Scale Sector. The appellant also applied for an electric connection of 100 KVA which was sanctioned by the Electrical Executive Engineer, Giridih, by letter dated 14th January, 2000. After completion of all requirements and formalities, including execution of an agreement, the electric connection to the petitioners manufacturing Unit was energised on 6th December, 2000. Admittedly, the appellant started commercial production with effect from 18th January, 2001. Subsequently, in June, 2001, the appellant was served with a bill of A.M.G. charges for the period 2000-01 Which was challenged by the appellant in WP"(C) No. 2946 of 2001 and the same was disposed of on 27th January, 2003 with a direction to the writ petitioner to file a representation before the General Manager-cum-Chief,, Engineer, Hazaribag. The matter was disposed of by the said authority on 21st March, 2005 upon a decision being taken that the appellant herein was not entitled to exemption from payment of A.M.G. charges for five years as such benefit was given to Units between 1st April, 1993 to 31st" August, 2000. The -said order of the General Manager-cum-Chief Engineer rejecting the claim of the appellant for grant of exemption from payment of A.M.G. charges was again challenged by the appellant in WP (C) No. 2248 of 2005 which, as indicated hereinabove, was dismissed by. the learned Single Judge. 3. Admittedly, the State of Bihar came up with an Industrial Policy in 1995 whereunder the Government was desirous of giving the benefit of exemption from pay-merit of A.M.G. charges for new Industrial Units having connected load upto 500 KVA under Clause 9.6 of the said Policy.
the learned Single Judge. 3. Admittedly, the State of Bihar came up with an Industrial Policy in 1995 whereunder the Government was desirous of giving the benefit of exemption from pay-merit of A.M.G. charges for new Industrial Units having connected load upto 500 KVA under Clause 9.6 of the said Policy. Vide Notification No. 3493, dated 3rd September, 1996, the State of Bihar in its Energy Department decided to exempt from payment of Minimum Guarantee Charges for a period of five years such Units which had come into production between 1st September, 1995 to 31st August, 2000. Inasmuch as, the appellant had started production thereafter on 18th January, 2001, the learned Single Judge was of the view that the appellant/writ petitioner was not entitled to any benefit under the said Policy of 1995. Aggrieved by the order of the learned Single Judge, the appellant has preferred the instant appeal. 4. Appearing in support of the appeal, Mrs. A.R. Choudhary, learned Advocate, submitted that even if the appellant-Company was not entitled to the benefit of exemption from the payment of AMG charges under the 1995 Industrial Policy, the appellant was entitled to such exemption under the subsequent Policy issued by the State of Jharkhand in the year 2001 where similar benefits had been indicated in Clause 15.2.11 which, inter alia provides for exemption from payment of Minimum Guarantee Charge in respect of new Industrial Units having connected load up to 500 KVA or equivalent HP. The said Policy of 2001 prescribes that the effective dates from which this policy comes into force will be from 15th November, 2000 till 31st March, 2005. Mrs. Choudhary submitted that since the Unit of the appellant had started production on 18th January, 2001, the benefit under the Policy should have been made applicable to such Unit, but till today, no notification has been issued which has had the effect of denying the benefits of the Industrial Policy to New Industrial Units, as was intended to be given by the Jharkhand Government. 5. On behalf of the Jharkhand State Electricity Board, it was submitted by Mr. Delip Jerath that the appellant could have availed of the earlier policy, but it failed to do so and, as a result, the appellant would not be entitled to the benefits of the new Industrial Policy. 6.
5. On behalf of the Jharkhand State Electricity Board, it was submitted by Mr. Delip Jerath that the appellant could have availed of the earlier policy, but it failed to do so and, as a result, the appellant would not be entitled to the benefits of the new Industrial Policy. 6. We have carefully considered the submissions made on behalf of the respective parties and we are not inclined to accept Mr. Jeraths submission on account of the fact that from the materials on record, it is clear that the appellant Company did whatever was possible to obtain supply and .commence production within the cut-off date of the earlier Policy, but that the supply was ultimately made available much after the agreement had been signed and the Policy had lapsed. It is quite evident that the appellant could not have derived the benefit of the earlier policy, even if it wanted to do so. 7. In such circumstances, we dispose of this appeal with a direction upon the Jharkhand State Electricity Board to take appropriate steps to act in terms of the direction of the State Government in its Energy Department on 10th March, 2005, and to issue the notification intended as expeditiously as possible and, in the event, the Jharkhand State Electricity Board has any difficulty in doing so, it should refer back to the Government in its Energy Department within fifteen days from the date of communication of this order. 8. Once the notification, as intended under the order of 10th March, 2005 is published, the appellant will be eatitled to apply for grant of exemption from payment of Minimum Guarantee Charges as contemplated in Clause 15.2.11 of the Jharkhand Industrial Policy, 2001 and if such an application is made, the Jharkhand State Electricity Board shall take steps to process the same and grant such relief as the appellant may be entitled in terms of the said Policy. In the event, the appellant is granted exemption from payment of Minimum Guarantee Charges under the aforesaid Policy, all payments made till date, by way of AMG charges and the Delayed Payment Surcharge added thereon, shall be adjusted against the current bills raised and payable by the appellant. 9.
In the event, the appellant is granted exemption from payment of Minimum Guarantee Charges under the aforesaid Policy, all payments made till date, by way of AMG charges and the Delayed Payment Surcharge added thereon, shall be adjusted against the current bills raised and payable by the appellant. 9. Let a plain copy of this order be made available to the learned Advocate for the Jharkhand State Electricity Board so that steps may be taken in terms of this direction immediately. There will be no order as to costs.