ORION ELECTRONICS PRIVATE LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) This writ petition has been filed for challenging the extension fee being demanded by respondent No. 2 on account of non commencement of production.

(2.) Plot No. C-130, Phase VIII, Eltop, SAS Nagar, Mohali was allotted to Sh. Jagdeep Singh, Director of the petitioner Company. The allotment letter did not provide for charging extension fees. The plot was subsequently leased to the petitioner company by a supplementary lease agreement dated 18.04.1984. The Registration Certificate certifying commencement of production was issued on 08.02.1997 certifying date of commencement of production as 24.01.1985. This writ petition challenges the orders dated. 15.11.2006, 27.02.2007, 20.09.2007 and 01.12.2008 respectively (Annexures P7, P10, P11 and P13) demanding extension fee from the petitioner. The challenge of the petitioner is based upon the averments that the petitioner had been issued a registration certificate dated 08.02.1999 by the Department of Industries which also specified the date of commencement of production as 24.01.1985. The levy of extension fee against the petitioner was based on a notification dated 02.09.2005 (Annexure P8). A perusal of the aforesaid notification shows that it applies to all the existing and new areas either fully developed/semi- developed for industrial purposes and the relevant portion, of the said policy reads as follows :-

(3.) A perusal of the above extracts of the policy clearly demonstrates that the extension fee was to apply in respect of the industrial land allotted under the said policy dated 02.09.2005 and for seeking extension in time period for bringing up units of production failing which the allotment would be deemed to be cancelled. The said notification also provided that exemption could be granted on payment of extension fee @ 1% per year on current reserve price of the land. The Counsel for the petitioner submits that this policy is not applicable to the petitioner because the registration certificate issued as far back as on 08.02.1999 demonstrates the commencement of production w:e.f. 24.01.1985. The petitioner has also pointed out this registration certificate and the effect thereof to the respondents in his earlier communications. The petitioner's representation dated 31.07.2008 in fact clarified to the respondents that the extension fee was not leviable on them as the petitioner had commenced production from 24.01.1.985 and reliance was placed on the following statement published in 'The Tribune' dated 01.09.1987 :-