{"id":128751,"date":"2017-05-03T18:48:24","date_gmt":"2017-05-03T13:18:24","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=128751"},"modified":"2017-05-25T13:18:23","modified_gmt":"2017-05-25T07:48:23","slug":"essar-to-pay-electricity-duty-of-rs-1038-27-crores-to-the-state-of-gujarat","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/05\/03\/essar-to-pay-electricity-duty-of-rs-1038-27-crores-to-the-state-of-gujarat\/","title":{"rendered":"Essar to pay electricity duty of Rs. 1038.27 Crores to the State of Gujarat"},"content":{"rendered":"

Supreme Court<\/strong>: Refusing to interfere with the decision of the Gujarat High Court directing Essar Steel India Ltd. (ESL) to pay electricity duty amounting to Rs. 562 Crores together\u00a0with\u00a0interest\u00a0totaling\u00a0Rs. 1038.27 Crores to the State of Gujarat, the bench of Dr. A.K. Sikri and Ashok Bhushan, JJ said that the statutory conditions for grant of exemption\u00a0as\u00a0contained\u00a0in\u00a0Section\u00a03(2)(vii)(a)\u00a0of the Bombay Electricity Duty Act, 1958 can neither be tinkered with nor diluted.<\/p>\n

ESL holds 42% shares in Essar Power Ltd. (EPL) which is a\u00a0duly incorporated company under the provisions of Companies\u00a0Act,\u00a01956,\u00a0which\u00a0is\u00a0a\u00a0generating\u00a0company selling\/supplying electrical energy. The Court noticed that both ESL\u00a0and\u00a0EPL\u00a0are\u00a0distinct\u00a0separate\u00a0legal\u00a0entities and merely\u00a0because\u00a0ESL\u00a0might\u00a0have\u00a042%\u00a0shares\u00a0holding\u00a0in EPL, it cannot be said that ESL is generating electricity\u00a0jointly\u00a0with\u00a0EPL\u00a0and\u00a0EPL\u00a0is\u00a0generating electricity\u00a0jointly\u00a0with\u00a0ESL\u00a0for\u00a0use\u00a0of\u00a0electricity by\u00a0ESL.<\/p>\n

It was further stated that even assuming ESL and EPL are\u00a0jointly\u00a0generating\u00a0the\u00a0energy\u00a0for\u00a0the\u00a0use of \u00a0 industrial \u00a0 undertaking \u00a0 which \u00a0 are \u00a0 jointly generating\u00a0the\u00a0energy,\u00a0the\u00a0Gujarat\u00a0Electricity\u00a0Board to\u00a0whom\u00a0300\u00a0MW\u00a0has\u00a0been\u00a0allocated\u00a0cannot\u00a0be\u00a0held\u00a0to be \u00a0 industrial \u00a0 undertaking \u00a0 which \u00a0 is \u00a0 jointly generating\u00a0the\u00a0energy\u00a0with\u00a0appellant.\u00a0The\u00a0Statutory scheme \u00a0 for \u00a0 grant \u00a0 of \u00a0 exemption \u00a0 has \u00a0 to \u00a0 be \u00a0 strictly construed. \u00a0 EPL \u00a0 is \u00a0 not \u00a0 jointly generating\u00a0energy\u00a0with\u00a0Gujarat\u00a0Electricity\u00a0Board\u00a0and it\u00a0is\u00a0selling\u00a0the\u00a0energy\u00a0to\u00a0the\u00a0extent\u00a0of\u00a0300\u00a0MW\u00a0to Gujarat \u00a0 Electricity \u00a0 Board. \u00a0 Hence, the \u00a0 conditions \u00a0 of \u00a0 the statutory\u00a0provisions\u00a0of\u00a0Section\u00a03(2)(vii)(a)\u00a0of the Act are\u00a0not fulfilled.\u00a0[Essar Steel India Ltd. v. State of Gujarat, 2017 SCC OnLine SC 522<\/a>, decided on 02.05.2017]<\/p>\n","protected":false},"excerpt":{"rendered":"

Supreme Court: Refusing to interfere with the decision of the Gujarat High Court directing Essar Steel India Ltd. (ESL) to pay electricity <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[16821,2649,15781],"class_list":["post-128751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-electricity-duty","tag-exemption","tag-infrastructure-laws"],"yoast_head":"\nEssar to pay electricity duty of Rs. 1038.27 Crores to the State of Gujarat | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2017\/05\/03\/essar-to-pay-electricity-duty-of-rs-1038-27-crores-to-the-state-of-gujarat\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Essar to pay electricity duty of Rs. 1038.27 Crores to the State of Gujarat\" \/>\n<meta property=\"og:description\" content=\"Supreme Court: Refusing to interfere with the decision of the Gujarat High Court directing Essar Steel India Ltd. 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Supreme Court interprets\u00a0","author":"Editor","date":"January 28, 2022","format":false,"excerpt":"Supreme Court: The Division Bench comprising of M. R. Shah* and Sanjiv Khanna, JJ., reversed the impugned order of the High Court whereby the High Court had held that education institutions run by charitable societies are exempted from payment of electricity duty. The Bench held that if the argument that\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-charitable-education-institutions-exempted-from-levy-of-electricity-duty-under-Maharashtra-Electricity-Act-2016-Supreme-Court-interprets.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-charitable-education-institutions-exempted-from-levy-of-electricity-duty-under-Maharashtra-Electricity-Act-2016-Supreme-Court-interprets.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-charitable-education-institutions-exempted-from-levy-of-electricity-duty-under-Maharashtra-Electricity-Act-2016-Supreme-Court-interprets.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-charitable-education-institutions-exempted-from-levy-of-electricity-duty-under-Maharashtra-Electricity-Act-2016-Supreme-Court-interprets.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Whether-charitable-education-institutions-exempted-from-levy-of-electricity-duty-under-Maharashtra-Electricity-Act-2016-Supreme-Court-interprets.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":156524,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/09\/19\/essar-steel-india-v-rbi%e2%80%a0-a-case-comment\/","url_meta":{"origin":128751,"position":3},"title":"Essar Steel India v. 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Bopanna, JJ., contemplated the scope of Section 9 of Arbitration and Conciliation Act, 1996 vis-a-vis Order 38 Rule 5 of Civil Procedure Code, 1908 and decided whether High Court erred in not considering the requisites of Order 38,\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Courts-power-under-Section-9-AC-Act-1996-wider-than-CPC-Technicalities-of-CPC-cannot-prevent-it-from-securing-the-ends-of-justice-SC-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Courts-power-under-Section-9-AC-Act-1996-wider-than-CPC-Technicalities-of-CPC-cannot-prevent-it-from-securing-the-ends-of-justice-SC-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Courts-power-under-Section-9-AC-Act-1996-wider-than-CPC-Technicalities-of-CPC-cannot-prevent-it-from-securing-the-ends-of-justice-SC-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Courts-power-under-Section-9-AC-Act-1996-wider-than-CPC-Technicalities-of-CPC-cannot-prevent-it-from-securing-the-ends-of-justice-SC-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Courts-power-under-Section-9-AC-Act-1996-wider-than-CPC-Technicalities-of-CPC-cannot-prevent-it-from-securing-the-ends-of-justice-SC-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":273605,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/09\/13\/bombay-hc-issues-ad-interim-order-directing-cgpl-not-take-steps-invoke-letter-of-credit-issued-by-maharashtra-state-electricity-distribution-company-ltd-legal-updates\/","url_meta":{"origin":128751,"position":5},"title":"Bombay HC issues an ad interim order directing CGPL to not take further steps to invoke the Letter of Credit issued by Maharashtra State Electricity Distribution Co. 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