{"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":"<p style=\"text-align: justify;\"><strong>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<p style=\"text-align: justify;\">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<p style=\"text-align: justify;\">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, <a href=\"http:\/\/www.scconline.com\/LoginForNewsLink\/c3puO00m\">2017 SCC OnLine SC 522<\/a>, decided on 02.05.2017]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Essar 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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