LAWS(JHAR)-2014-7-20

STATE OF JHARKHAND Vs. KOHINOOR STEEL PVT LTD

Decided On July 03, 2014
STATE OF JHARKHAND Appellant
V/S
Kohinoor Steel Pvt Ltd Respondents

JUDGEMENT

(1.) THIS appeal is directed against the judgment dated 18.9.2012 rendered in W.P(C) No.6727/2010, in and by which the learned Single Judge disposed of the writ petition directing the respondents to determine the amount of various subsidies, viz Capital Investment Incentive, Captive Power Generating Subsidy, Interest Subsidy, Stamp Duty and Registration Subsidy, Feasibility Study Project Report Cost Reimbursement Subsidy, Pollution Control Equipments Subsidy and make payment to the writ petitioner -respondent.

(2.) THE brief facts, which led to filing of the present Letters Patent Appeal, are as under: -

(3.) THE respondent started its production in its DRI (Sponge Iron Plant) with effect from 05.05.2006, the Power Plant and its Steel Melting Shop started production from 17.07.2007. A certificate to that effect was issued by the Director, Department of Industries, Government of Jharkhand and the same was communicated to the respondent vide memo No. 1801 dated 09.08.2008. The respondent submitted application for Capital Investment Subsidy on 16.09.2008 as per Jharkhand Mega Project Incentive Rule, 2005 but the same was not decided. Under the circumstances, the writ application was filed seeking for direction for grant of incentives, for which, the respondent -Company was entitled under the Mega Industrial Policy and the Rules made thereunder. Pursuant to the order of the High Court dated 18.02.2011, the Industries Department passed a reasoned order vide memo No. 512 dated 01.03.2011 (Annexure -7) rejecting the claim of the respondent for different heads of subsidies. The capital investment incentive was rejected on the ground that the Unit has not submitted the application for capital investment incentive within the mandatory time period of six months. In so far as other subsidies namely Interest Subsidy, Pollution Control Equipment, Stamp Duty, Registration Fees, Captive Energy Subsidy, Project Repair Reimbursement are concerned, they were rejected on the ground that the Unit has not done any negotiation in respect of those subsidies before the commencement of the project. The writ petition, W.P(C) No.6727/2010, was then amended to challenge the order contained in memo no.512 dated 1.3.2011.