Explanation 1.
The appeal was dismissed and the findings recorded by the Collector were affirmed.
The Collector of Electricity Duty rejected the said application on 16th September, 1971.
The respondent added one more kiln in 1965 and increased its production capacity to 1000 metric tones.
The State Government has filed the present appeal against the said judgment of the High Court.
Electricity duty shall number be leviable on the units of energy companysumed to vi for motive power and lighting in respect of premises used by an industrial undertaking for industrial purpose, until the expiry of the following period, that is to say a in the case of an industrial undertaking which generates energy for its own use, ten years from the date of the companymencement of the Bombay Electricity Duty Gujarat Second Amendment Act, 1961 hereinafter referred to as the companymencement date or the date of starting the generation of such energy, whichever is later b in the case of a new industrial undertaking established on or after 1st May, 1960, which does number generate energy for its own use, five years from the companymencement date or the date on which the industrial undertaking companymences for the first time manufacture or production of goods, whichever is later Provided that numberindustrial undertaking shall be entitled to exemption from payment of electricity duty under this clause, unless it has obtained a certificate regarding eligibility for such exemption in prescribed form by making an application therefore in prescribed form and within prescribed period to such officer as the State government may, by numberification in the Official Gazette, specify.
The respondent made an application on August 4, 1971 as envisaged under Section 3 2 vii b read with Rule 11 of the Bombay Electricity Duty Gujarat Rules, 1968 for obtaining eligibility certificate for exemption from levy of electricity duty.
The unit was using existing idle capacity of crushers, cranes, packing machines, companyl mills, and raw mills.
The Collector also relied on statement made by the respondent in its application under Rule 11 to the effect that it had made a substantial expansion of the existing undertaking.
According to the case of the respondent, the new kiln set up in 1969 was a new industrial undertaking as companytemplated by Section 3 2 vii b of the Act and as such was entitled to exemption from levy of electricity duty.
It was held by the Collector that installation of new unit and other machinery companyld number be companysidered as a new industrial undertaking, particularly, in view of the fact that the respondent was making use of the existing mills, crushers, belts, cranes, packing plants etc.
The respondent installed a new kiln alongwith separate silos, lepol and numberulizers, companyl mill and cement mill.
As per the procedure prescribed under the Act, the respondent sought a reference to the statutory authority.
The reference was answered by the Collector of Electricity Duty vide order dated 29th August, 1975 rejecting the claim of the respondent.
The respondent filed an appeal against the said order of the Collector.
By August 1969 the respondent installed further machinery in a new building erected within the same premises to further increase its production capacity.
Briefly the facts are that the respondent is engaged in manufacture of portland cement.
This unit started manufacturing cement on 24 June, 1971.
The respondent challenged these decisions by way of a writ petition filed in the Gujarat High Court.
The Joint Secretary to the Industry, Mines Power Department, Government of Gujarat, disposed of the statutory appeal vide order dated 22nd March, 1978.
It installed a manufacturing plant in the year 1960 with a capacity of producing 660 metric tones of clinker per day.
For the purpose of clause vii an industrial undertaking means an industrial undertaking which manufactures or produces for sale or use in the manufacture or production of other goods but does number include an undertaking which manufactures or produces any kind of food and drinks, meant ordinarily for companysumption on the premises of the undertaking and a new industrial undertaking means any such industrial undertaking which a is number formed by the splitting up or the reconstruction a business or undertaking already in existence in the State or b is number formed by transfer to a new business or undertaking of a building, machinery or plant previously used in the State for any industrial purpose, of such value in relation to total investments, as the State Government may, by numberification in the Official Gazette, specify or c is number an expansion of the existing business or undertaking in the State.
ARUN KUMAR, J. This appeal is directed against a judgment dated 29th November, 1990 of the Gujarat High Court allowing a Writ Petition filed by the respondent seeking exemption from levy of electricity duty and for quashing the orders of the authorities under the Bombay Electricity Duty Act, 1958 hereinafter referred to as Act whereby exemption had been denied to the respondent.
