{"id":208319,"date":"2008-08-07T00:00:00","date_gmt":"2008-08-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/power-vs-state-on-7-august-2008"},"modified":"2016-12-13T12:18:15","modified_gmt":"2016-12-13T06:48:15","slug":"power-vs-state-on-7-august-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/power-vs-state-on-7-august-2008","title":{"rendered":"Power vs State on 7 August, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Power vs State on 7 August, 2008<\/div>\n<div class=\"doc_author\">Author: D.A.Mehta,&amp;Nbsp;Honourable Ms.Justice H.N.Devani,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/2069\/2004\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 2069 of 2004\n \n\n \n \n==========================================\n\n\n \n\nPOWER\nBUILD LTD. &amp; 1 - Petitioner(s)\n \n\nVersus\n \n\nSTATE\nOF GUJARAT &amp; 2 - Respondent(s)\n \n\n=========================================\n \nAppearance : \nM\/S\nWADIA GHANDY &amp;CO for Petitioner(s) :\n1,UNSERVED-EXPIRED (N) for Petitioner(s) : 2,PARTY-IN-PERSON for\nPetitioner(s) : 2, \nGOVERNMENT PLEADER for Respondent(s) : 1 -\n3. \n==========================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE D.A.MEHTA\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS.JUSTICE H.N.DEVANI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 07\/08\/2008 \n\n \n\n \n \nORAL\nORDER<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MS.JUSTICE H.N.DEVANI)<\/p>\n<p>This<br \/>\n\t petition has been preferred challenging the action of the<br \/>\n\trespondent authorities of demanding and recovering tax on the basis<br \/>\n\tof the certificates issued by the Sales Tax Department on 27.6.1996<br \/>\n\tbeing cancelled in the following circumstances :\n<\/p>\n<p>In<br \/>\n\t1993, respondent ?  State of Gujarat announced the scheme titled<br \/>\n\t?SIncentive Scheme for Wind Power Generation 1993?? for extending<br \/>\n\tsales tax incentives to industrial undertakings who would set up<br \/>\n\twind farms in the State of Gujarat so as to curb the gap between<br \/>\n\tdemand and supply of power in the State<\/p>\n<p>Pursuant<br \/>\n\tto the said Scheme, the petitioner installed two windmills in two<br \/>\n\tlots at Lambha, District Jamnagar and the eligible investment was<br \/>\n\tcomputed at Rs.82,66,406 for the first lot and Rs.1,26,97,948\/- for<br \/>\n\tthe second lot. On 27.6.1997, the Sales Tax Department issued<br \/>\n\tExemption Certificate granting benefit of sales tax deferment to the<br \/>\n\ttune of Rs.41,33,203\/- for the first lot and Rs.63,48,974\/- for the<br \/>\n\tsecond lot. The first certificate was effective from 30.3.1994 and<br \/>\n\tthe second certificate was effective from 30.3.1995. The period of<br \/>\n\tbenefit was available for a span of six years i.e. commencing from<br \/>\n\t30.3.1994 and ending 29.3.2000 for the first lot and commencing from<br \/>\n\t30.3.1995 and ending on 29.3.2001 for the second lot.\n<\/p>\n<p>On<br \/>\n\t9th June 1998, a cyclone hit the coastal regions of the<br \/>\n\tState, more particularly districts of Porbandar and Jamnagar<br \/>\n\tresulting in wide spread damage.  The windmills installed by the<br \/>\n\tpetitioner company were uprooted resulting in stoppage of production<br \/>\n\tof power.  One of the conditions of the Scheme was Condition No.7(b)<br \/>\n\twhich reads as under:\n<\/p>\n<p>?S(b)<br \/>\n   The Industrial unit will remain in production continuously during<br \/>\nthe eligible period.??\n<\/p>\n<p>Obviously,<br \/>\n\tas the petitioner could not remain in production continuously during<br \/>\n\tthe eligible period, the respondent authority issued notices<br \/>\n\tproposing to recover the amount availed of by the petitioner as<br \/>\n\tsales tax benefit under the said Scheme with interest. Such notices<br \/>\n\twere issued on 15.12.2003, 24.12.2003 and 19.1.2004. The petitioner<br \/>\n\ttendered a detailed explanation on 13.9.2000, followed by letters<br \/>\n\tdated 22.12.2003 and 3.1.2004 pointing out that the demand was<br \/>\n\tunjustified in the facts and circumstances of the case.\n<\/p>\n<p>It<br \/>\n\tis the case of the petitioners that despite the aforesaid position,<br \/>\n\tvide order dated 31.1.2004 the respondent Sales Tax authority has<br \/>\n\theld that the petitioners have committed breach of the condition<br \/>\n\tNo.7 (b) of the Scheme of running the windmill for a continuous<br \/>\n\tperiod of six years from the date of commissioning. In the present<br \/>\n\tcase, the windmills have not been recommissioned.\n<\/p>\n<p>Heard<br \/>\n\tthe learned Advocate for the petitioners and the learned Assistant<br \/>\n\tGovernment Pleader on behalf of the respondents.\n<\/p>\n<p>It<br \/>\n\tis an admitted position that the controversy involved in the present<br \/>\n\tpetition has been decided by a judgement and order of even date made<br \/>\n\tin the case of Elecon Engineering Company Ltd. and another v.<br \/>\n\tState of Gujarat and others, rendered in Special Civil<br \/>\n\tApplication No.2067 of 2004.\n<\/p>\n<p>The<br \/>\n\tfacts of the present case are therefore, required to be examined in<br \/>\n\tthe light of the principles laid down in the aforesaid decision. It<br \/>\n\tis an admitted position as noted hereinabove, that the petitioner<br \/>\n\therein has not recommissioned its windmills. In the circumstances,<br \/>\n\tas held in paragraph 9 of the said decision, the petitioner shall be<br \/>\n\tliable to discharge its liability for the period prior to the date<br \/>\n\tof the cyclone for which the original scheme provides for in<br \/>\n\taccordance with other terms of the Scheme. In other words, the<br \/>\n\trespondents shall not be entitled to effect any recovery on the<br \/>\n\tground of breach of condition of continuous operation of period of<br \/>\n\tsix years but such bar shall not apply to the petitioner as regards<br \/>\n\tdischarging its liability, which it is otherwise liable to<br \/>\n\tdischarge, qua the benefit availed of in accordance with the other<br \/>\n\tterms of the scheme.\n<\/p>\n<p>The<br \/>\n\tpetition is accordingly, allowed. Rule is made absolute to the<br \/>\n\taforesaid extent with no order as to costs.\n<\/p>\n<p>[D.A.MEHTA,<br \/>\nJ.]<\/p>\n<p>[HARSHA<br \/>\nDEVANI, J.]<\/p>\n<p>parmar*<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Power vs State on 7 August, 2008 Author: D.A.Mehta,&amp;Nbsp;Honourable Ms.Justice H.N.Devani,&amp;Nbsp; Gujarat High Court Case Information System Print SCA\/2069\/2004 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 2069 of 2004 ========================================== POWER BUILD LTD. &amp; 1 &#8211; Petitioner(s) Versus STATE OF GUJARAT &amp; 2 &#8211; [&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":[16,8],"tags":[],"class_list":["post-208319","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Power vs State on 7 August, 2008 - Free Judgements of Supreme Court &amp; 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