- (1.) The petitioner prays for issuance of a writ quashing memos dated 27.10.1993 (Annexure P-7) and 07.04.1994 (Annexure P-9), denying to the petitioner, exemption from electricity duty and sales tax etc. Mr. Prem Sagar Garg, Director, M/s. P.S.C. Steels Pvt. Limited, in person, submits that the State of Haryana issued notification on 30.01.1981, Annexure P-1, exempting new industrial units engaged in manufacturing, process and preservation of goods from payment of electricity duty, leviable under Clause III of sub section (1) of Section 3 of the Punjab State Electricity (Duty) Act, 1958 (hereinafter referred to as 'the Act'), for five years, provided capital investment is upto Rs. 50 lakhs. The petitioner registered his unit with the Director of Industries, Haryana, Chandigarh, on 15.02.1984. A provisional registration certificate was issued to the petitioner, for manufacture of S.S. Alloy steel and ingots. The provisional registration certificate was extended from time to time. On 30.06.1989, the State of Haryana, issued another notification, in the exercise of power under Section 12 of the Act, whereby all new industrial units engaged in manufacturing, processing and preservation of goods, coming into commercial production in the State of Haryana, on or after 01.04.1988, other than those mentioned in the schedule to the notification were exempted from payment of electricity duty etc. Clause 17 of the schedule provides that "power intensive units based on electro-thermal/electro-chemical and electrolytic process" are not entitled to exemption.
(2.) The petitioner-company completed the factory building, installed machinery and started production of MS ingots, on 31.03.1991. The petitioner-company applied, to the General Manager, District Industries Centre, Yamuna Nagar, for permanent registration. A permanent registration number was issued to the petitioner on 04.06.1991. Upon receipt of the permanent registration number, the petitioner applied for electricity duty and sales tax exemption under the notification, issued on 30.06.1989. The Director, Industries, however, did not issue the requisite eligibility certificate on the plea that the petitioner's unit is not exempted as it is a "power intensive unit". The petitioner raised a protest that as a "power intensive unit" has not been defined, and the unit is not "power intensive", the rejection is illegal. The Director of Industries, Haryana, referred the matter to the Central Electricity Authority, Ministry of Irrigation and Power Sewa Bhawan, Ramakrishna Puram, New Delhi, for clarification. The Central Electricity Authority, vide letter dated 08.12.1989, clarified that 12 industries are categorized "power intensive units" for the purpose of electricity demand, forecasting and planning. The petitioner made another representation referring to the clarification, to the Director, Industries, Haryana, for review of its decision. The Director of Industries, Haryana, once again referred the matter to the Central Electricity Authority. On 07.08.1992, the Chief Engineer, Central Electricity Authority, intimated that list of "power intensive units" mentioned by the Central Electricity Authority does not include M.S. Ingots Steel Industry, but the Chief Engineer relied upon an earlier letter dated 08.12.1989 and rejected the representation.
(3.) The petitioner submits that in view of the above clarification, the rejection letters, Annexures P-7 and P-9, are illegal and should be set aside. It is further submitted that as the petitioner's unit was granted a provisional registration certificate, in 1984, notification issued on 30.06.1989, does not apply to the petitioner. It is also contended that as the Central Electricity Authority has clarified that the list of "power intensive units" does not include M.S. Ingots Steel Industry, the petitioner is entitled to exemption from electricity duty and sales tax. It is prayed that in this view of the matter, the writ petition may be allowed and the respondents may be directed to grant exemption and issue eligibility certificate, as prescribed by law.;