AMAN LIME WORKS Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this writ petition, the pe-titioning- Units had Initially prayed for issuance of writ in the nature of mandamus commanding the respondents to resume the supply of coal to their factories immediately pursuant to the direction given in L.P.A. Nos. 701 and 710 of 2002 (Annexure 6) filed by the M/s. Central Coalfields Limited and others against the judgment of the learned single Judge passed in C.W.J.C. Nos. 10066 of 2000 and 10124 of 2000 (Annexure 5) read with the order of the General Manager. District Industries Centre. Rehtas, Sasaram to the Director. Industries. Bihar. Patna vide letter, contained In Memo No. 534 dated 3-5-2003 (Annexure 8), whereby the found both the industries to be in workable condition and decided the matter in their favour. However, in view of the subsequent development, which has been brought on record by way of Annexure B to the counter affidavit filed on behalf of respondents Nos. 1 and 2, learned counsel for the petitioners submitted that the petitioners are now aggrieved by the said order (Annexure B), whereby permanent registration of the petitioners industries has been cancelled with immediate effect.

(2.) In short, the relevant facts are that the petitioners are registered with the Bihar Government as Small Scale Industries, which entitles such Units to certain benefits for promotion of industries in this State. The petitioners Units are also registered with Coal India Limited and/or its subsidiary companies under a certain Scheme, where under they have been granted linkage which entitles them to certain benefits including supply of coal on out of turn basis. According to the scheme of the Bihar Government, such registered small scale units are entitled to supply of coal, inter alia, without payment of sales tax.

(3.) It appears that the State Government received complaints that many such Units have either been closed down or exist only on paper to obtain the quota of coal without payment of sales tax and after enjoying other benefits admissible to them. In order to check such malpractices, the Coal Companies held a meeting with the State Government and recorded joint minutes dated 26-4-2000, whereby it was agreed that the State of Bihar shall make inspection of such Units and inform the Coal Companies about their functioning and status. In implementation of the minutes, the State Government issued show cause notice dated 21-7-2000 to the petitioners that their Units were closed and; therefore, were called upon to explain as to why their registration as Small Scale Industries be not cancelled. The petitioners filed their show cause wherein in substance they stated that the Units have been operating spasmodically because of inadequate supply of coal.