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2017 (4) TMI 1428 - HC - Indian LawsEntitlement to Special Incentive Package Scheme - the petitioner falls under the category of "other eco system products" provided under para 2.3 of the Notification dated 21.03.2007 - threshold value of the scheme - Net Present Value (NPV) of investments - the discrepancy in the calculation of NPV was on account of the claim of the respondent No.1 that the discount on the investment shall be applied to the base year, i.e. 2008-09 also. The specific case of the respondents is that the period of first 10 years shall be reckoned from the start of the project as provided by Para 3.2 of the Scheme and therefore the base year shall also be included for calculation of threshold value and the investment made during the base year shall also be discounted. Held that:- After examining the provisions of the Scheme and the calculation of the NPV as set out in the Guidelines, the learned Single Judge was of the view that since the Scheme by itself had neither set out the definitions nor the formulae for calculation of the NPV and the operability of the Scheme was dependent on the Guidelines, the Guidelines in fact added to the conditions stipulated in the Scheme - Single Judge was also of the view that issue involved is not to be examined only from the point of view as to how NPV is ordinarily calculated but it is to be contextualized in the setting of the Scheme. On a reading of the provisions of the Scheme as well as the Guidelines we are of the view that the Guidelines have merely supplemented the Scheme and there is no conflict as such between the Scheme and the Guidelines. Hence, the question of Guidelines overriding the Scheme dated 21.03.2007 does not arise at all. Having regard to the fact that the definition of "i" in the formula in Clause 2.4 of the Guidelines indicates "number of completed years from base year", we are also of the view that the learned Single Judge was right in holding that discounting of the value of capital expenditure is to take place from the year subsequent to the base year. This is made further clear from the language of Clause 2.7(b) of the Guidelines. Thus, the learned Single Judge was fully justified in concluding that in the light of Clause 2.4 and Clause 2.7 of the Guidelines, the investments made in the base year are not to be discounted. The said interpretation given by the learned Single Judge, in our considered opinion, does not suffer from any legal infirmity warranting interference in an intra court appeal. Appeal dismissed.
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