The High Court
Case Details
Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Nov-2024 13:15:20 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C). NO.28048 OF 2024 M/s. Rathi Steel and Power Limited, New Delhi …. Petitioner Mr. Gautam Misra, Senior Advocate being assisted by Mr. Satya Smruti Mohanty, Advocate h -versus- State of Odisha and others …. Opp. Parties
Legal Reasoning
Mr. Debendra Kumar Sahoo, Additional Government Advocate CORAM:
Decision
JUSTICE K.R. MOHAPATRA ORDER 28.11.2024 Order No. 01. 1. This matter is taken up through hybrid mode. 2. Mr. Gautam Misra, learned Senior Advocate enters appearance on behalf of the Petitioner by filing a memo of appearance in Court, which is taken on record. 3. This writ petition has been filed with the following prayer: that “In the circumstances stated above, it is humbly prayed this Hon’ble Court may graciously be pleased to issue an appropriate writ, direction or order; i) declaring the demand letter dated 22.12.2017 at Annexure-22 and the disconnection notice dated 12.01.2017 at Annexure-30, as revised by letter dated 12.02.2018 at Annexure-32 and letter dated 28.02.2018 at Annexure-33 as illegal and non- est in the eye of law; ii) quashing the demand letters dated 22.12.2017 and 02.01.2018 at Annexure-22 and 26 respectively and the letter dated 12.01.2018 at Annexure-30 as revised by letter dated 12.02.2018 at Annexure-32 and reiterated by letter dated 28.02.2018 at Annexure-33, and Page 1 of 1 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Nov-2024 13:15:20 iii) directing the Opp. Party No.5 to forward the applications of the Petitioner for grant of exemption from payment of electricity duty at Annexure-12 and 14 with due certification of such exemption to the Opp. Party No.4 to grant from payment of exemption electricity duty on consumption of electricity generated in the 2nd and 3rd Units of its CPP in accordance with clause 18.10A of IPR, 2001 read the notifications dated 23.06.2003 and with 06.03.2006 issued by the Opp. Party No.1. for enabling him the Petitioner to And, pass any such other Order(s)/Direction(s) as this Hon’ble Court may deem fit and proper in facts and circumstances of the case; And, for which act of kindness the Petitioner shall as in duty bound ever pray.” 4. Mr. Misra, learned Senior Advocate submits that in view of the Industrial Policy Resolution, 2001, the Petitioner’s unit is entitled to exemption of electricity duty. A recommendation has been made to that effect by the Director of Industries, Sambalpur-Opposite Party No.5 under Annexure-6. The status report issued to that effect is also available at Annexure-8 Accordingly, an application for exemption of electricity duty in respect of second and third unit of the Petitioner-Industry was made, which is pending before the Director of Industries, Odisha, Cuttack-Opposite Party No.5 along with the recommendation of Regional Industries Centre, Sambalpur. He draws attention of this Court to Clause-6 of the guidelines dated 6th March, 2006 (Annexure-3) issued by the Government of Odisha in Department of Energy, which deals with Exemption on Electricity Duty on Captive Power Plant/Generating Sets/CPP from Non-conventional Source under IPR, 2001. He verily relied upon Clause-6.4 and 6.5 of the said guidelines, which read as under: Page 2 of 5 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Nov-2024 13:15:20 form “6.4 In case of large and medium Industrial unit, after scrutiny, spot verification, examination, correction on the signature of if any under application GM/PM/Manager, CI (for tiny handicraft, khadi, village & Cottage Industries) it shall be forwarded in duplicate to the Director of Industries/D.C.I.O. along with recommendation of GM/PM/Manager, CI (for tiny handicraft, khadi, village & Cottage Industries) on plain paper regarding extent of exemption, the date from which the same shall be effected to the concerned Electrical Inspector by whom the exemption will be allowed. shall after necessary 6.5 Director examination furnish the required certificate on the application form and send a copy of the duly certified application form under covering letter in enclosed form-II. Copies of covering letter recommending exemption admissible to the concerned S.E. (P)-Cum- (G) of the area shall be sent with a copy to CE(P)-cum- CEI(G), Orissa, Bhubaneswar.” Industries 4.1 It is his submission that since the matter is pending before the Director of Industries, Odisha, Cuttack, he should take a decision on the same with regard to exemption of electricity duty. It is, therefore, prayed that a direction may be made to the Director of Industries, Odisha, Cuttack to take a decision on the application made by the Petitioner-Industry for exemption of electricity duty pending before it and till that date, demand notices, if any, should be kept in abeyance. 5. Mr. Sahoo, learned Additional Government Advocate submits that he has no instruction with regard to the status of the application and recommendation, if any, made by the Petitioner- Industry for exemption of electricity duty. If the same is pending, the Director of Industries, Odisha, Cuttack may take a decision in accordance with law. He, however, submits that if a short adjournment is granted, he can take instruction on the same. Page 3 of 5 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Nov-2024 13:15:20 6. On perusal of the record, it appears that on receipt of the application made by the Petitioner-Industry, the Regional Industries Centre, Sambalpur has recommended the case of the Petitioner-Industry to the Director of Industries, Odisha, Cuttack for taking a decision on exemption of electricity duty. It is also stated in the counter affidavit filed by the Opposite Party Nos. 1 to 4 that the Petitioner-Industry failed to submit any recent document regarding consideration of exemption of electricity duty by the Energy Department. It is, however, submitted by Mr. Mishra, learned Senior Advocate that since the matter is pending before the Director of Industries, Odisha, Cuttack, no recent document could be presented before the Superintending Engineer-cum-Electrical Inspector, Sambalpur-Opposite Party No.4 for exemption of electricity duty. 7. Taking into consideration the submission advanced by Mr. Misra, learned Senior Advocate appearing for the Petitioner, this Court is of the considered opinion that interest of justice will be best served, if the Director of Industries, Odisha, Cuttack- Opposite Party No.5 takes a decision on the application of the Petitioner-Industry keeping in mind the recommendation of Regional Industries Centre for exemption of electricity duty in respect of second and third unit at an early date to remove the impasse. 8. Accordingly, this Court without expressing any opinion on the merits of the case of the Petitioner-Industry disposes of this writ petition with a direction that the Director of Industries, Odisha, Cuttack-Opposite Party No.5 shall take a decision on the recommendation made by the Regional Industries Centre, Sambalpur dated 21st August, 2009 and 28th June, 2011 in respect Page 4 of 5 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISSA, CUTTACK Date: 29-Nov-2024 13:15:20 of second and third unit of the Petitioner-Industry as expeditiously as possible preferably within a period of four months from the date of production of certified copy of this order, if the same is still pending with him. If any decision has already been taken on the recommendation made by the Regional Industries Centre, Sambalpur, decision thereof shall be communicated to the Petitioner within the aforesaid period. Till a decision is taken, demand of electricity duty as under Anenxure-11 in respect of the Petitioner-Industry shall not be given effect to. Urgent certified copy of this order be granted on proper application. Rojalin (K.R. Mohapatra) Judge Page 5 of 5