- (1.) This is an appeal by special leave against the judgment and order of the High court of Madhya Pradesh at Jabalpur whereby the petition under Articles 226 and 227 of the Constitution of India preferred by Orient Paper Mills Ltd. , the sole respondent herein, was allowed and as a sequel the order dated 15/03/1973 of the State government declining to grant the respondent exemption from payment of electricity duty for the period from 16/02/1965 to Feb 15/02/1970 and pursuant demand notices dated 20/03/1973 and 3/04/1973 were quashed. The aggrieved State of Madhya Pradesh and its concerned officers are the appellants challenging the same.
(2.) The respondent had need to go to the High court to have an assurance dated 1/08/1961 regarding exemption from payment of electricity duty given by the State of Madhya Pradesh in its declared industrial policy observed, which may well be reproduced here at the outset: "Where power has to be generated by industrialists themselves, exemption from electricity duty shall be granted for a period of five years from the date the plant goes into production. The concession shall be applicable only to new generating sets installed during the Third Plan period. "
(3.) Factually it was not disputed before the High court, that the case of the respondent squarely falls within the scope of the assurance reproduced above since the industrial plant of the respondent had gone into production with effect from 16/02/1965, the generating set put up was new, and had been installed during the Third Plan period. Toformalise the matter, the respondent had corresponded with the government for the grant of the requisite exemption. Since the same was rejected and demands for payment of electricity duty created). the High court was requested to issue suitable writs, directions and orders cancelling the aforesaid orders and demand notices and granting exemption from payment of electricity duty in respect of electricity self-generated by the respondent during the said period of five years, and also commanding the State to carry out the assurance and promises made in the said industrial policy dated 1/08/1961 extracted above and then requiring the State to issue a notification under S. 3-B of the Madhya Pradesh Electricity Duty Act, 1949 granting exemption or exception to the respondent from payment of electricity duty and Other allied consequential reliefs.;