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2022 (5) TMI 308 - HC - VAT and Sales TaxDoctrine of promissory estoppel and legitimate expectation - Validity of assessment order - Benefit of N/N. S.O. 70 dated 17.07.2004 - period 15.11.2000 to 31.03.2005 - Whether petitioner is entitled for the benefit of exemption from payment of electricity duty for a period of ten years from the date of commercial production of its 30 MW Captive Power Generation Plant in terms of Clause 15.2.2 of the Industrial Policy-2001? HELD THAT:- The bare reading of Clause 15.2.2 leaves no iota of doubt that State Government was keen to encourage private sectors to establish such number of CPPs as would be required by it to meet the existing and future demand of its Industrial units. Even generation of surplus energy through CPPs could have been purchased by SEB from private sectors. This clear emphasis on establishment of CPPs was to fulfill the dual objective to be achieved by the State Government, namely, to ensure that industries situated in the State are not starved of power and, further, if CPPs are encouraged and established by private sector, State resources towards supply of power can be utilized to supply power to other sectors/industrial units which could not establish CPPs. It is with the said avowed objective, it was clearly stipulated in the Policy that power generated from such CPPs would be exempted from payment of electricity duty for a period of 10 years from the date of commercial production. It is an admitted fact that Petitioner has established 25 MW and 10 MW CPPs on 26.03.2002 and 15.11.2004 respectively, and, since the said CPPs were established before 31.03.2005, Respondent-State of Jharkhand extended the benefit of exemption from payment of electricity duty to said CPPs for a period of 10 years, which has already been availed by the petitioner - Even an additional ground of production of Certificate of Commercial Production from Director of Industries was taken by the Appellate Authority for denying the benefit of exemption. The main thrust of the arguments of the Respondent-State is upon Clause 29.2 of the Policy. However, from a bare reading of Clause 29.2, it would be evident that the incentive enumerated under the said Clause 29.2 only would be admissible ‘only once’ to a unit and the said incentives are specifically enumerated in the said Clause itself. One of the incentives enumerated under Clause 29.2 is ‘Captive Power Generating Subsidy’ - In fact, Clause 29.2 read with Clause 29.4 buttresses the contention of the petitioner that exemption from payment of electricity duty was not restricted to only one CPP established during the subsistence of the Industrial Policy-2001 as the Policy itself incorporated restriction where it intended to restrict the benefit available under the Policy ‘only once’. The petitioner is entitled to the benefit of exemption from payment of electricity duty under the Bihar Electricity Duty Act, 1948 in respect of its 30MW Captive Power Generation Plant having date of commercial production on 04.05.2009 in terms of the provisions contained under Clause 15.2.2 of the Jharkhand Industrial Policy-2001 - matter remanded back to Respondent No.3-Deputy Commissioner of Commercial Taxes, Adityapur Circle, Jamshedpur to pass fresh assessment orders extending the benefit of exemption from payment of electricity duty in respect of 30 MW CPP to the petitioner and to issue consequential excess demand notices for refund of the amount of electricity duty realized, if any, from the petitioner in respect of its 30 MW CPP. Application allowed.
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