GULJAG INDUSTRIES LTD. Vs. COMMISSIONER, COMMERCIAL TAXES

JUDGEMENT

(1.) The instant bunch of writ petitions has been preferred by the petitioner M/s Guljag Industries Ltd. for assailing action of the respondents in demanding electricity duty from the petitioner and to assail the orders passed by the Appellate Authority and the Revisional Authority dtd. 15/3/2010 and 17/10/2017 respectively, affirming the demand for electricity duty raised against the petitioner by the Commercial Taxes Authority, Jodhpur.

(2.) Shri Sanjeev Johari, learned Senior Counsel assisted by Shri Lalit Parihar, Advocate, submitted that the petitioner company is involved in various commercial activities and established a captive power plant for the purpose of its own consumption and the consumption of its sister concern "Guljag Gases Pvt. Ltd." He submitted that both the companies are closely held and the Board of Directors belong to same family. The industrial units of both the companies are located within the same chunk of land bearing Khasra No.166 at Village Palari Khichiyan, District Jodhpur. Thus, as per Shri Johari, the consumption of electricity by sister concern Guljag Gases Pvt. Ltd., has to be treated as consumption of captive power and not as sale and hence, the same cannot be subjected to electricity duty.

(3.) The impugned action of the respondents in demanding electricity duty from the petitioner on the premise that the petitioner company, indulged in sale of electricity to Guljag Gases Pvt. Ltd., is totally unjustified and illegal and hence, the impugned demand notices and so also, the orders passed by the Appellate Authority and Revisional Authority, affirming the demand of electricity duty vide impugned demand orders, deserve to be struck down.