{"id":184534,"date":"2005-06-14T00:00:00","date_gmt":"2005-06-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/pradeep-cement-pvt-ltd-vs-jharkhand-state-electricity-on-14-june-2005"},"modified":"2018-01-30T06:33:40","modified_gmt":"2018-01-30T01:03:40","slug":"pradeep-cement-pvt-ltd-vs-jharkhand-state-electricity-on-14-june-2005","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/pradeep-cement-pvt-ltd-vs-jharkhand-state-electricity-on-14-june-2005","title":{"rendered":"Pradeep Cement Pvt. Ltd. vs Jharkhand State Electricity &#8230; on 14 June, 2005"},"content":{"rendered":"<div class=\"docsource_main\">Jharkhand High Court<\/div>\n<div class=\"doc_title\">Pradeep Cement Pvt. Ltd. vs Jharkhand State Electricity &#8230; on 14 June, 2005<\/div>\n<div class=\"doc_citations\">Equivalent citations: 2005 (3) JCR 291 Jhr<\/div>\n<div class=\"doc_author\">Author: M Eqbal<\/div>\n<div class=\"doc_bench\">Bench: M Eqbal<\/div>\n<\/p>\n<pre><\/pre>\n<p>ORDER<\/p>\n<p>M.Y. Eqbal, J.<\/p>\n<p>1. Heard Mr. M.S. Mittal, learned counsel for the petitioner and Mr. Delip Jerath,<br \/>\nlearned counsel for the respondent-Board.\n<\/p>\n<p>2. The only question that falls for consideration is as to whether petitioner Industrial<br \/>\nUnit is entitled to the benefits of Industrial Policy 1995 in the matter of exemption from<br \/>\npayment of AMG Charges for a period of five years.\n<\/p>\n<p>3. The facts of the case lie in a narrow compass :\n<\/p>\n<p> The petitioner setup an industry of cement manufacturing Unit. It applied to<br \/>\nthe Department of Industries for grant of Industrial License under the Small Scale<br \/>\nIndustries (SSI Sector). Petitioner also applied for electric connection of 100 KVA and<br \/>\nthe Electrical Executive Engineer, Giridih accorded sanction vide letter-dated 14.1.2000<br \/>\nfor the supply of electricity. After completed all the requirements and formalities including execution of agreement electric connection was energized on 6.12.2000. Petitioner<br \/>\nsaid to have started commercial production with effect from 18.1.2000. In June 2001,<br \/>\npetitioner was served with a bill of AMG charges for the period 2000-01. Petitioner<br \/>\nchallenged those bills by filing writ petition being WPC No. 2946 of 2001, which was<br \/>\ndisposed of on 27.1.2003 by this Court with a direction to the petitioner to file<br \/>\nrepresentation before respondent No. 2, General Manager-cum-Chief Engineer,<br \/>\nHazaribagh stating inter alia that under Clause 9.6 of 1995 Industrial Policy, petitioner<br \/>\nUnit is entitled to exemption from payment of AMG Charges for five years. The General<br \/>\nManager-cum-Chief Engineer by order dated 21.3.2005 disposed of the representation<br \/>\nand held that petitioner is not entitled to exemption from payment of AMG Charges on<br \/>\nthe ground that in terms of provisions laid down in the Board&#8217;s Letter No. 652 dated<br \/>\n11.10.1996 the benefit was available only to those Units which came into production in<br \/>\nbetween 1.4.1993 to 31.8.2000. The General Manager also held that electric connection<br \/>\nwas given in the Unit only on 6.12.2000 and as per the certificate issued by the General<br \/>\nManager, petitioner-Unit came in production only on 18.1.2001. Petitioner also<br \/>\nchallenged the order dated 21.3.2005 passed by General Manager-cum-Chief Engineer<br \/>\nrejecting the claim of the petitioner for grant of exemption from payment of AMG<br \/>\nCharges.\n<\/p>\n<p>4. The erstwhile State of Bihar came out with an Industrial Policy in the year 1995<br \/>\nknown as 1995 Industrial Policy. By the said Industrial Policy the State of Bihar desired<br \/>\nto give impetus to the Industrial Units within certain specified time period by issuing<br \/>\nnotification. By Clause 9.6 of the Industrial Policy the Government desired to give<br \/>\nexemption besides other from payment of AMG Charges for new industrial Unites having<br \/>\nconnected load of 500 KVA. The State of Bihar vide notification dated 3.9.1996 issued<br \/>\nunder Section 78-A of the Electric (Supply) Act decided to exempt from levy of<br \/>\nMinimum Guarantee Charges for a period of five years to those industrial unit which<br \/>\ncame into production between 1.9.1995 to 31.8.2000.\n<\/p>\n<p>5. The stand of the respondent-Jharkhand State Electricity Board is that as per the<br \/>\nletter issued by the Bihar State Electricity Board being letter No. 652 dated 11.10.1996<br \/>\nremission\/exemption was allowed only to those Industrial Unit which came into<br \/>\nproduction from 1.4.1993 to 31.8.2000. The relevant portion of letter dated 11.10.1996<br \/>\nreads as under :\n<\/p>\n<p>&#8220;Dinank 1.4.1993 se 31.8.2000 ke bich utpadan me aanewali avm<br \/>\nparivasit vistaar\/diversification karne walon odyogik upbhokta Jinka connected vidyut<br \/>\nload 500 (five hundered) KVA tak ho ko vidyut sambandh tithi se paanch varshon tak ke<br \/>\nliye nimntam guarantee se chhut dya jayega.&#8221;\n<\/p>\n<p>&#8220;It transpires from the above that production of those Industrial unit which have come<br \/>\nin force in between the period from 1.4.1993 to 31.8.2000 and whose connected load are<br \/>\nupto 500 KVA will only be entitled to get remission\/exemption in AMG charges for the<br \/>\nfive years from the date of connection.&#8221;\n<\/p>\n<p>6. It is contended by the respondents that this fact was duly communicated to the<br \/>\npetitioner as back as in 2001 vide letter of the Electrical Superintending Engineer dated<br \/>\n8.8.2001.\n<\/p>\n<p>7. The erstwhile State of Bihar in order to create environment for optimal utilization<br \/>\nof State&#8217;s agro climatic, mineral and human resources and to accelerate the industrial<br \/>\ngrowth time to time came with an industrial policy giving exemption to the newly<br \/>\nestablished industrial Units subject to certain terms and condition also by issuing<br \/>\nnotification. One of those industrial policies of the Government is of 1995 Policy. Those<br \/>\nbenefits like exemption from payment of Sales Tax, AMG Charges, rebate for non-supply<br \/>\nof power to industrial undertakings decided to be given for a limited period by issuing<br \/>\nnotification through the concerned department of the Government. The Government is<br \/>\ntherefore entitled to grant exemption to the industry having regard to Industry Police of<br \/>\nthe Government. The Government is also free to modify its Industrial Policy and grant,<br \/>\nwithdrawal or modify fiscal benefits from time to time by issuing notification. It is,<br \/>\ntherefore, clear that merely because of issuance of Industrial Policy such benefits cannot<br \/>\nbe claimed as a matter of right by the Industrial Unit unless the Government grant<br \/>\nbenefits in accordance with the Industrial Policy by issuing notification. In this con-<br \/>\nnection reference may be made to the decision of the Supreme Court in the case of<br \/>\n<a href=\"\/doc\/1323298\/\">Arvind Industries and Ors. v. State of Gujarat and Ors.,<\/a> .\n<\/p>\n<p>8. In the case of <a href=\"\/doc\/644832\/\">Commissioner of Sales Tax, Orissa and Anr. v. Jagannath Cotton<br \/>\nCompany and Anr.,<\/a>  also the Supreme Court considered the question of<br \/>\nbenefit claiming under Orissa Industrial Policy Resolution 1986 and 1989. Their<br \/>\nLordships observed :\n<\/p>\n<p> &#8220;Apart from the above consideration, we must also see what are the<br \/>\nprovisions, if any, in the Orissa Sales Tax Act providing exemption from sales tax in the<br \/>\ncase of new industries and whether they are consistent with the provisions of IPR or are<br \/>\nthey different. The High Court seems to have proceeded on the assumption that the IPR<br \/>\nby itself is enough to provide the exemption from the sales tax. But where the provisions<br \/>\nof the Sales Tax Act are also amended providing for exemption, then the Court has to see<br \/>\nwhether they are the same as the IPR or are then different and if different, what is the<br \/>\neffect of such difference. It is therefore, necessary to ascertain the relevant provisions in<br \/>\nthe Sales Tax Act, rules and notifications, if any, issued thereunder before expressing a<br \/>\nfinal opinion in the matter.\n<\/p>\n<p>9. In the instant case, as noticed above, by the Industrial Policy, 1995 issued by the<br \/>\nState of Bihar, the Government decided to give some benefits to the Industrial Units for a<br \/>\nperiod of five years. Admittedly, the Bihar State Electricity Board vide Circular dated<br \/>\n8.5.2001 clarified that remission\/exemption in AMG Charges which was granted to those<br \/>\nIndustrial Units whose production commenced in between 1.4.1993 to 31.8.2000 shall<br \/>\nnot continue after 31.8.2000. Even before that Bihar State Electricity Board vide letter<br \/>\nNo. 652 dated 11.10.1996 had clearly notified that only those Industrial Units which<br \/>\ncame into production in between 1.4.1993 to 31.8.2000 having connected load of 500<br \/>\nKVA will be entitled to get exemption in AMG Charges for a period of five years from<br \/>\nthe date of connection. Admittedly, petitioner Unit was supplied electric connection only<br \/>\non 6.12.2000 and as per the petitioner&#8217;s own case the production started from 18.1.2001.<br \/>\nIt is, therefore, clear that petitioner-Unit did not start production before 31.8.2000. In my<br \/>\nopinion, therefore, petitioner cannot claim as a matter of right the benefit of exemption<br \/>\nfrom payment of AMG Charges merely because the Unit was established in 2000.\n<\/p>\n<p>10. Taking into consideration the entire facts of the case and the notification referred<br \/>\nto herein above and also having regard to the fact that the Unit came into production only<br \/>\nfrom 18.1.2001, petitioner is not entitled to any benefit under the Industrial Policy,<br \/>\n1995.\n<\/p>\n<p>11. For, the aforesaid reasons, there is no merit in this writ application, which is<br \/>\naccordingly dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jharkhand High Court Pradeep Cement Pvt. Ltd. vs Jharkhand State Electricity &#8230; on 14 June, 2005 Equivalent citations: 2005 (3) JCR 291 Jhr Author: M Eqbal Bench: M Eqbal ORDER M.Y. Eqbal, J. 1. Heard Mr. M.S. Mittal, learned counsel for the petitioner and Mr. Delip Jerath, learned counsel for the respondent-Board. 2. The only [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,18],"tags":[],"class_list":["post-184534","post","type-post","status-publish","format-standard","hentry","category-high-court","category-jharkhand-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pradeep Cement Pvt. 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