R.K.MERATHIA, J. - (1.) IN these write petitions, filed by Central Coalfields Limited (CCL) and Bharat Coking Coal Limited (BCCL); common questions are raised and therefore they are taken up together. The petitioners pray for a declaration that they are not liable to pay surcharge payable in terms of Section 3 -A of the Bihar Electricity Duty Act, 1984 (the Act for short), and for refund of the surcharge paid by them.
(2.) IT was contended on behalf of the petitioners that after the pronouncement of the judgment in the case of Bihar Alloy Steels Limited and Anr. v. State of Bihar and Ors., reported in 1996 (1) PLJR 824; the petitioners realized that they have been paying the surcharge by mistake and therefore, they are entitled to a declaration that they are not liable to pay surcharge and also that they are entitled to refund of the amounts, paid as surcharge. Broadly stated, the liability to pay surcharge under Section 3 -A of the Act inter alia arises, when a person becomes liable to pay duty -on generation and consumption of electricity as per Section 4 (4), and on sale and consumption as per Section 4 (4 -a) of the Act.
(3.) WE will first consider whether the judgment in Bihar Alloys case is applicable to the petitioners or not. In that case, this Court found that the company was generating electricity in a very negligible quantity, namely, 1330 units as against 8,74,000 units purchased from Damodar Valley Corporation in a given month. It was therefore held that the electricity was not meant either for consumption or for sale. In that position, it was held that the company was not liable to pay duty under Section 4 (4) of the Act. Regarding the liability to pay duty on sale of electricity under Section 4 (4 -A) of the Act, it was held that the company was not selling electricity to its employees, as certain amount of energy was provided free of cost to them and beyond that, 25 paise per unit was charged as electrical maintenance charge. Based on these findings, it was held that the company was not liable to pay surcharge.;