STATE OF GUJARAT Vs. VADILAL GASES PVT LTD

JUDGEMENT

(1.) The appeal has been preferred by the State against the judgment and order passed by the learned Single Judge dated 18.11.2009. By the said order, learned Single Judge allowed the writ petition preferred by the respondent-company, Vadilal Gases Private Limited (hereinafter referred to as 'the petitioner-company') holding that the petitioner-company being a 'manufacturing unit' is required to pay only 10% of the duty charges and not 60% as demanded by the appellants and set aside the demand order dated 06.06.2000 issued by the Assessing Officer, Officer of Commissioner of Electricity Duty, Gandhinagar.

(2.) The writ petition was preferred by the petitioner-company claiming that it's unit is manufacturing various kinds of gas mixtures registered as small scale industry unit is with the Department of Industries. Two electric meters, one for industrial purpose are other for domestic purpose are installed in the unit. It has already been classified under the category of 10% electricity duty ever since 1992.

(3.) Sometime in the year 1998, the 3rd appellant Assessment Officer visited the said unit and thereafter issued notice on 12.11.1998 to show cause as to why 60% of electricity duty be not made applicable to the petitioner-company. The petitioner-company by its reply informed that it is a manufacturing industry, therefore, it is liable to pay only 10% electricity duty as per law. On 26.11.1998 the 2nd appellant - Collector of Electricity Duty, Gandhinagar, instructed the Gujarat State Electricity Board to revert to 10% electricity duty. However, on the basis of a subsequent report submitted by the officers from Gujarat Electricity Board, 2nd appellant Collector of Electricity Duty again issued a second show cause notice to which petitioner-company replied. It has provided the details of manufacturing of gas made by it.