RELIANCE INDUSTRIES LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioners have filed this petition under Article-226 of the Constitution of India praying for quashing and setting aside the order dated 3.8.2000 passed by the respondent No.3 i.e. Dy. Secretary, Energy, Petrochemicals Department, Gandhinagar. The petitioners have also prayed for quashing and setting aside the decision of the respondent authorities of classifying consumption of electrical energy by the petitioner company under the residuary Clause No.7 of the Schedule to the Bombay Electricity Duty Act, 1958 liable to levy at 60% duty as conveyed by notices dated 5.1.1999 at Annexure-D and E to the petition. The petitioners have further prayed for quashing and setting aside the supplementary bills for differential duty dated 5.1.1999 and also the notices for disconnection dated 8.2.1999 in respect of Consumer Account No.27124 ad 27127. The petitioners have further prayed for the direction to the respondent authorities not to demand the amount of differential duty from the petitioner company or not to adjust the amount of differential duty from the security deposit lying with the respondent No.2 and if already adjusted from the security deposit or any other amount liable to be paid to the petitioner or from the amount of refund to be granted to the petitioner from the respondents or any other authority, then to refund the said adjusted amount of differential duty to the petitioner with interest @ 18% per annum till the date of payment.

(2.) The petition was admitted on 24.7.2001. Initially the petition was filed by Reliance Petroleum Ltd. During the pendency of the petition the petitioner Company was merged into Reliance Industries Ltd., and hence the name of the petitioner Company was changed as Reliance Industries Ltd. Similarly the petition was filed initially against Gujarat Electricity Board. During the pendency the Board was divided into several companies and hence the Company having the jurisdiction over the petitioner was joined as respondent No.2 - Puschim Gujarat Vij Co. Ltd., in place of Gujarat Electricity Board.

(3.) It is the case of the petitioners that the petitioner Company applied for 5500 KVA power supply for setting up and constructing their factory premises on 29.4.1995. The power supply of 2400 KVA was released to the petitioner Company on 20.8.1996. From the date of supply of electricity till the date of controversy, the petitioner company was classified as consumption of electrical energy by an "industrial undertaking" and, therefore, was classified under Clause No.5 of the Schedule-I of Bombay Electricity Duty Act and was subjected to 20% rate of duty. On 5.1.1999, the Executive Engineer of the then Gujarat Electricity Board issued notice stating that the electrical energy consumed by the petitioner Company for constructing its factory premises would be classifiable under residuary Clause No.7. Of the Schedule and shall attract 60% of the rate of duty and not 20% under Clause-5 of the Schedule as was being done till date. Vide the notice, the differential amount payable by the petitioner for connection No.27124 for the period between November, 1996 to December, 1998 was assessed at Rs.1,04,35,263/- and for connection No.27127, the differential amount payable was determined at Rs.6,14,237.95.