PRACHI ENGINEERING PVT LIMITED Vs. STATE OF ORISSA

JUDGEMENT

(1.) In this writ petition, the petitioner a private limited company through its Managing Director prays for a direction to the opposite parties to extend the benefits under the 1989 Industrial Policy Resolution (for short, the 'IPR') and to quash Annexure-1, the letter of the General Manager, District Industries Centre, Balasore refusing the said benefit.

(2.) The case of the petitioner-unit in short is, It's a private limited company set for manufacturing of M.S. Rods, M.S. Flats and Angles at Ranital in the district of Bhadrak. The company was duly registered with the District Industries Centre, Balasore. The company was supplied with electricity power on 20-10-1991 and went into commercial production from 25-11-1991 onwards. The land on which the industry is established was purchased for the company on 1-11-1985.Since the contract demand for electricity power supply was 359 KVA and thus below 500 KVA for which the unit was entitled to exemption of electricity duty under the 1989 IPR, it made an application to that effect for such exemption which was though initially allowed, but subsequently refused under Annexure-1 intimating that the unit came under 1980, I.P.R. Aggrieved by the said action, the petitioner-unit has approached this Court.

(3.) Opposite parties 1 to 3 have filed a counter affidavit through the Assistant Director, Industries in which they have justified their stand that since the land on which the unit stands was purchased on 1-11-1985 in the form of fixed capital assets, the unit is not entitled to get the benefit under the 1989 policy which came into force from 1-12-1989.