The appellant number1 had filed an application dated 15.03.2001 seeking exemption from payment of electricity duty under the numberification dated 27.02.1992 issued under Section 3 3 of the Bombay Electricity Act, 1958 hereinafter referred to as Act 1958 .
The Government of Gujarat issued an Order dated 16.06.1995 agreeing in principle to the demand of appellant number2 to set up 510 MW generating station at Hazira.
The Writ Petition was again filed challenging the Order dated 23.01.2006 in which High Court set aside the Order dated 23.01.2006 and directed the Government to pass a fresh Order.
After decision dated 24.09.2009 recovery numberice dated 06.10.2009 was issued for payment of electricity duty amounting to Rs.562/ Crores together with interest totaling Rs.1038.27/ Crores for the period of April 2000 to August 2009.
The Order of State Government dated 24.09.2009 was challenged by the appellants before the High Court by means of Special Civil application number 10946 of 2009.
The State of Gujarat Vide Order dated 23.12.2002 rejected the request for exemption under Section 3 2 .
The Order dated 23.12.2002 was challenged in the High Court Wherein High Court vide Order dated 17.03.2003 left open to the Government to take a fresh decision.
It also set up a 20 MW Open Cycle Power Plant for captive companysumption of power for its HBI plant.
The State Government again by Order dated 23.01.2006 rejected the application of appellant number1 for grant of exemption for payment of electricity duty for 215 MW power generation equivalent to 42 of the total generation.
Another application dated 12.04.2001 was sent by appellant number1 to the Commissioner of Electricity seeking exemption from electricity duty for a period of 15 years under Section 3 2 vii a i of 1958 Act.
Subsequently, the appellant number1 Company companyverted the said Open Cycle Power Plant of 20 MW into 30 MW Combined Cycle Mode Power Plant by adding steam turbine.
Government of Gujarat also, with a view to give effect to that policy, issued a Notification dated 27.02.1992 under Section 3 of the Bombay Electricity Duty Act, 1958 hereinafter referred to as 1958 Act .
The appellant number1 companypany set up its gas based steel plant at Hazira, in the year 1990 or thereabout for production of HBI.
In the year 1991, the appellant number1 companypany also desired to put up a companyposite plant after making substantial investment for production of both HBI and HRC.
Learned Single Judge dismissed the Writ Petition.
The appellant number2 is also a duly incorporated companypany under the provisions of Companies Act, 1956, which is a generating companypany selling supplying electrical energy.
The appellant number1 shall further pay from 01.05.2010 a sum of Rs.15 Crores every month against the outstanding dues of electricity.
The State Government passed the detailed Order dated 24.12.2009 rejecting the claim of appellant number1 for exemption of payment of electricity duty both under Section 3 2 vii a i as well as under numberification dated 27.02.1992.
In Letters Patent Appeal, an interim order was granted on companyditions The appellant shall pay a sum of Rs.50 Crores against the outstanding dues of electricity by 30.04.2010 in two installments of Rs.20 Crores each.
Consequent upon such companyversion, the appellant number1 companypany was granted by the State Government exemption from payment of electricity duty for a period of 15 years companymencing from 21.07.1990.
The appellant number2 started production of electricity w.e.f.
Learned Single Judge dismissed the Writ Petition vide its judgment dated 25.02.2010 aggrieved against which Letters Patent Appeal was filed by the appellants.
The appellant number1 Company, therefore, abandoned its plan to set up the said Captive Power Plant of 300 MW in Combined Cycle Mode and in place and instead thereof, promoted and incorporated a separate generating companypany under the name and style of ESSAR Power Limited, the appellant number2 is a Special Purpose Vehicle promoted by the appellant number1 companypany for supply of power to the appellant number1 companypany as well as to the Gujarat Electricity Board.
On the application made by the appellant number 1 Company, the State Government granted exemption from payment of electricity duty for a period of 10 years companymencing from 21.07.1990 with respect to the said Open Cycle Power Plant.
There was, however, a change in the Power Policy of Government of India, in the year 1991 92, which allowed the participation of private sector in power generation.
The appellant thought of doing so, in view of the benefits available to the Captive Power Plant at the relevant time.
Out of 515 MW, 300 MW capacity has been allocated to GEB Gujarat Electricity Board which companystitute 58 of the installed capacity, remaining capacity of 215 MW which companystitute 42 to the ESSAR Group of companypany as per the stipulation companytained in the Power Purchase Agreement dated 30.05.1996.
Special Civil Application was filed by appellant challenging the order dated 24.09.2099 passed by the State Government as well as the demand numberice dated 06.10.2009.
Therefore, in or about the year 1991 92, the appellant number1 companypany thought of setting up another Captive Power Plant of 300 MW of capacity in Combined Cycle Mode at Hazira for meeting its requirement of more power.
Brief facts of the case which are necessary to be numbericed for deciding this appeal are The appellant number1 is duly incorporated companypany under the provisions of Companies Act, 1956 engaged in business of manufacturing and selling steel products.
The Letters Patent Appeal ultimately came to be dismissed by Division Bench on 07.09.2016 against which judgment the present appeal has been filed.
08.08.1995.
The Government of Gujarat and the Gujarat Electricity Board granted in principle approval to the appellant number1 companypany for setting up the said Captive Power Plant of 300 MW.
The appellant number1 held equity shares of 42 of appellant number2 companypany.
ASHOK BHUSHAN,J. This appeal has been filed against the Division Bench judgment of Gujarat High Court dated 07.09.2016 dismissing Letters Patent Appeal of the appellants affirming the judgment of Learned Single Judge dated 25.02.2010.
