Summary
Essar’s electricity-duty exemption claims failed because the statutory and notification conditions were not met. Allocation of 58% of generation to GEB, which was not jointly generating the energy, defeated the claimed joint-generation exemption. The alternative 1992 notification claim also failed for want of purchase, installation or commissioning within the specified period.
Issues
- Whether the generation and supply arrangement satisfied the claimed electricity-duty exemptions.
Provisions considered
- Sections 3(2)(vii)(a)(i) and 3(3); notification dated 27 February 1992, Bombay Electricity Duty Act, 1958Exemption conditions required strict compliance. (¶¶ 14–21, 31–35)
Held
- Even assuming joint generation between the two Essar companies, GEB’s allocated 58% supply was not joint generation with GEB. The claimed proportionate exemption could not dilute statutory conditions. (¶¶ 17–23, 27–30)
- The generating sets were commissioned in August 1995 and purchase within 1 January 1991–31 December 1992 was not established. Merely placing an order was insufficient. That substantive failure justified rejection even disregarding the application-timing objection. (¶ 31–34)
Result
Appeal dismissed; denial of both exemption claims upheld.