TMI Blog2017 (11) TMI 1681X X X X Extracts X X X X X X X X Extracts X X X X ..... corporation cannot claim as of right that Government of India or the State Government should continue or grant the subsidy. It cannot be claimed as a matter of right; no such right exists to claim the subsidy. The Court cannot interfere in such matters. However, with respect to the State of Kerala, we find that in the interim order, that was passed before transfer of case to this Court, the State of Kerala has undertaken to reimburse the deficit amount to respondents Nos.2 and 3 in the event of the writ petition being dismissed ultimately - With respect to other states, suffice it to observe that it would be open to the respective parties to work out equities as may be considered appropriate by them, otherwise payment has to be made by the bulk consumers to the Oil Marketing Companies (OMCs). Petition dismissed. - CIVIL APPEAL NO.18917 OF 2017 (@ SPECIAL LEAVE PETITION (CIVIL) NO. 19996 OF 2013) , WITH TRANSFER CASE (C) No. 40-43/2014, TRANSFER CASE (C) No. 46/2014, TRANSFER CASE (C) No. 44/2014, TRANSFER CASE (C) No. 45/2014 - - - Dated:- 7-11-2017 - HON'BLE MR. JUSTICE ARUN MISHRA AND HON'BLE MR. JUSTICE MOHAN M. SHANTANAGOUDAR CIVIL APPEAL NO.19545 OF 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32 permanent employees and around 10,000-temporary/ provisional/ impaneled employees. Since petitioner is an establishment functioning without profit motives, with a social obligation to render maximum service to the public, it extended free traveling services to the physically differently abled persons, freedom fighters, journalists, press/media reporters, MLAs (Members of Legislative Assembly) and M.Ps. (Members of Parliament). Thus, the total number of free passes issued so far was 52,666. 6. The first respondent in the Writ Petition- Government of India, through the Ministry of Petroleum and Natural Gas, issued direction dated 17th January 2013 in which, it was observed, that sale of diesel, to all consumers taking bulk supplies directly from the installations of the Oil Marketing Companies (for short the OMCs ), be made at the non-subsidized, market-determined price, with immediate effect. The OMCs would not be eligible for any subsidy on such direct sale of diesel to bulk consumers. Thus, the petitioner claimed, that the respondent No.1 has meted out discrimination as against the Kerala State Road Transport Corporation in violation of Article 14 of the Constitution of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble and sustainable system of pricing of petroleum products, and also to examine the impact of an increase in the price of diesel. The Expert Group did not find compelling reasons to subsidize the petroleum products. The recommendations of the Expert Group were examined in detail and then placed before the Empowered Group of Ministers. 10. On 26.06.2010, the Empowered Groups of Ministers (For short the EGoMs ) decided, that the price of petrol was to be made market-determined by Government of India, and the same would be for both, at Refinery Gate and at the Retail level. However, in order to insulate the common man from the impact of the rise in oil prices in the international market, and in view of the domestic inflationary conditions, the Government of India continued to modulate the Retail Selling Prices of Diesel. Several steps were taken. On March 2012, Industry Performance Review was conducted and, it was observed, that around 17.77% of the total diesel sale in India was directly made to the bulk consumers, including Railways and State Transport Undertakings. It was further observed, that on 31.12.2012, the combined borrowings of the OMCs was of ₹ 1,68,948 crores, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eum products such as Diesel, PDS Kerosene, and Domestic Subsidized LPG is done in a transparent manner by OMCs. In fact, the price build-up of sensitive products is in public domain and hosted on the website of PPAC. In the context of pricing of sensitive products, it may be noted that more than 90% of the cost of production of a refining company is the cost of crude oil, which is linked to international oil prices. Over 80% of the Country's crude oil requirement is met through imports. Consequent to the deregulation of the Refining Sector w.e.f. 1st April 1998, domestic refineries are totally exposed to the vagaries of the international oil market and are not compensated in any form whatsoever based on their costs of refining activity. Further, the price of indigenously produced crude is also based on the price of crude oil in the international oil market. Accordingly, since the cost of production of an Indian refining company is based on actual costs of imports, the Refinery Transfer Prices for the finished products supplied at the refinery gate are also required to be determined on the principles of Import Parity, with linkages to the prices for the respective products in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 66 46 2008-09 1,03,292 52,286 51 2009-10 46,051 9,279 20 2010-11 78,190 34,706 44 2011-12 1,38,541 81,192 59 2012-13 1,24,854 73,815 59 iv The continued incurrence of under-recoveries, at one stage will create a situation where OMCs would not be in a position to maintain supplies of petroleum product in the country. 14. This court has transferred to itself all the writ petitions that had been pending before various High Courts and has stayed the interim orders, which were passed by the High Courts. It was observed that in such policy matter no interim orders could have been passed by the High Courts. 15. We are concerned now with respect to the validity of policy and the payment for interregnum period in which, interim stay had been enjoyed by the bulk consumers. The learned counsel for the parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercise of the very power under which the exemption was granted. (See Shri Bakul Oil Industries v. State of Gujarat (1987) 1 SCC 31, Kasinka Trading v. Union of India (1995) 1 SCC 274 and Shrijee Sales Corporation v. Union of India (1997) 3 SCC 398). 18. Similarly, this Court in Shree Sidhbali Steels Ltd. v. State of Uttar Pradesh Ors. (2011) 3 SCC 193 with respect to rebate has observed that it is a privilege granted in the form of an advantage. Concession granted by the State Government under section 49 of the Electricity Act, 1948 could be enjoyed during the period of its grant. It was defeasible one and was liable to be taken away or withdrawn the way in which it was granted. The Court observed : 48. From the principle enunciated in the abovementioned decision in Udaipur Udyog case (2004) 7 SCC 673, there is no manner of doubt that the rebate which was granted to the Petitioners, was, by definition, a freedom from an obligation which the appellants otherwise were liable to discharge. The rebate was a privilege granting an advantage which was not made available to others. The rebate granted under Section 49 of the Electricity (Supply) Act of 1948 was, therefore, a c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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