State Of Jharkhand & Ors vs Atibir Hi-Tech Pvt.Ltd., Giridh & Anr

M/s. Atibir Hi -Tech Pvt. Ltd. is an Industry having Induction Furnace and Rolling Mill at Mohanpur. It purchases electricity from Damodar Valley Corporation ("DVC", for short) for the purpose of its Industry under an agreement executed between it and DVC (respondent No.2 herein). The petitioner started its commercial activities from November, 1998. Before the High Court the Company pleaded that under ill-advice it had applied for registration as an assessee under Rule 3 of Bihar Electricity Duty Rules, 1949 and consequently on 9th December, 1999 it stood registered under Rule 4 and a Registration Certificate stood issued making it liable to pay duty for distribution and/or consumption of energy from 7.11.1998, as an assessee under the Bihar Electricity Duty Act, 1948. Accordingly, the Company sought refund of electricity duty and surcharge paid on the footing that it had applied for cancellation of registration which was wrongly rejected by the Authority under the said Rules, 1949. In short, the Company submitted before the High Court that it was not obliged to pay duty directly to the State as an assessee and that the Deputy Commissioner had wrongly dismissed their application for cancellation of registration. The Company accordingly sought refund of the duty paid by them for the period 7.11.1998 to 27.1.2006. Having examined the provisions of the said 1948 Act and the said 1949 Rules, the High Court, inter alia, came to the conclusion vide impugned judgment that the Company was not liable to pay duty and surcharge and consequently the impugned order dated 3rd March, 2006 passed by Deputy Commissioner of Commercial Taxes rejecting the application of the petitioner for cancellation of registration was set aside. Hence, this Civil Appeal has been filed by the State.

Liberty is given to the respondent - Company to amend its original Writ Petition (T) No. 6163 of 2006. Needless to add that the State and Damodar Valley Corporation would be entitled to file its additional affidavit to the amended Writ Petition.

We request the High Court to hear and expeditiously decide the Writ Petition in accordance with law within a period of four months from today.

Accordingly the civil appeals are disposed of with no order as to costs. ...............................J. (S.H. Kapadia) ...............................J. (B. Sudershan Reddy) New Delhi;

April 30, 2008.

and

The High Court has not considered the first above-mentioned issue. It has not decided the question as to whether the Department was justified in reopening the assessment. Therefore, we hereby set aside the impugned judgment and remit the matter to the High Court for fresh consideration in accordance with law.

Subject to what is stated hereinabove, this civil appeal stands disposed of with no order as to costs.

April 30, 2008.

Civil Appeal Nos.3463-67/2008 (@ SLP (C) Nos.19921-19925 of 2007) are taken on board.

In view of the Order passed in Civil Appeal No.3450/2008 (@ SLP (C) No.7272 of 2007) - State of Jharkhand & Ors. v. Atibir Hi-Tech Pvt. Ltd., Giridh and Anr. these civil appeals are accordingly disposed of with no order as to costs.

April 30, 2008.