UNION OF INDIA Vs. STATE OF H.P.

JUDGEMENT

(1.) THIS appeal is directed against the judgment of a learned Single Judge of this Court whereby he has allowed CWP No. 812 of 2001 filed by the respondents No. 4 and 5 herein and has held that the petitioner No. 1 is entitled to the amount of transport subsidy.

(2.) BRIEF facts of the case are that the petitioner is a public limited Company duly incorporated under the Indian Companies Act, 1956. It is engaged in the manufacture of cement at Barmana in District Bilaspur. The petitioner -company set up its first Unit at Barmana prior to 1984 but the said Unit was commissioned in the year 1984. The Union of India had framed a scheme known as 'Transport Subsidy Scheme' in the year 1971. This scheme was applicable in the State of H.P., and has been extended from time to time and admittedly continued to remain in operation with certain modifications. The salient features of the scheme as initially notified were that it would be applicable to the existing and new industrial units. The scheme was also applicable in case of substantial expansion by 25% or more of the licensed or approved capacity. The scheme provided for grant of transport subsidy to industrial units located in the selected areas in respect of raw materials which are brought into and finished goods which are taken out of such areas. Initially, there was no time limit for the period for which transport subsidy was to be granted but vide notification dated 28.7.1993, the scheme was partly modified and the benefits under the scheme were limited to a period of 5 years from the date of commencement of commercial production.

(3.) THE main question which arises for consideration is whether the second Unit is a separate industrial Unit or is only an expansion of the old Unit. In case it is a separate Unit, then there is no manner of doubt that the petitioner -company would be entitled to grant of transport subsidy but in case it is only held to be only an expansion of the original Unit, the petitioner -company would not be entitled to grant of transport subsidy.