TATA STEEL LIMITED Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) The instant writ application has been preferred by the petitioner-Company for quashing the Notification No. 125 dated 28.06.2011 (Annexure-5) issued by the Government of Jharkhand through its Commercial Taxes Department, to the extent the said notification has given retrospective effect to the definition of 'Industrial Unit' and 'Mines' inserted vide Section-3(i) and Section-3(k) of the Jharkhand Electricity Duty (Amendment) Act, 2011 [hereinafter referred to as 'Amendment Act, 2011'].

(2.) The Petitioner-Company is engaged in the business of manufacture and sale of Iron and Steel and is having its manufacturing unit in the State of Jharkhand at Jamshedpur and is also having its Captive Mines in the State of Jharkhand. The present dispute pertains to its colliery known as 'West Bokaro Colliery' situated in the district of Ramgarh in the State of Jharkhand. Under the provisions of the Bihar Electricity Duty Act, 1948 [hereinafter referred to as Duty Act]; the petitioner is required to pay electricity duty to the State Government on consumption of electricity in its mines and washery. As per the schedule prescribing the rate of duty under the aforesaid Act, Electricity Duty is leviable @ 2 paise per unit of energy for 'Industrial purposes' and @ 15 paise per unit on energy for 'Mining purposes'.

(3.) It is the case of the petitioner that in respect of its colliery situated in the district of Ramgarh, coal is extracted from the mines and the same is loaded in dumper and trucks and carried to crushing plant for crushing into small pieces. Thereafter the said coal which is called 'Run of Mines' (ROM) is sent to washery, which according to the petitioner is situated far away from the site of mining, for cleaning and washing the coal. Resultant product is transported through ropeway to the railway siding i.e. Chainpur Loading Complex from where washed coal is transported to the petitioner's steel Plant at Jamshedpur for consumption.