State of Kerala Vs. Indian Aluminium Co. Ltd. & ors.
EmailAppeal: Civil Appeal No. 2008 of 1990
Petitioner: State of Kerala
Respondent: Indian Aluminium Co. Ltd. & ors.
Apeal: Civil Appeal No. 2008 of 1990
Judges: V.N. KHARE & R.P. SETHI, JJ.
Date of Judgment: Jun 04, 1999
Head Note:
Section 49(3),(5) with Kerala Electricity Duty Act – Section 4, proviso – Exemption under – Old agreement to supply electricity at concessional rates – Amendment brought – Concessional rates rescinded – Demand of duty at higher rate – Validity. Held that High Court was right in setting-aside demand of duty as consumer was not obliged to pay specified duty till exemption continued.
Held:
State of Kerala has granted partial exemption in the matter of payment of duty to the company. So long as the exemption Order continued to remain in force, the Company was not liable to pay specified duty under Section 4 of the Kerala Electricity Duty Act. Neither the State Government nor the Board was within its rights to demand from the company electricity duty at the rate over and above what has been provided in the exemption Order. That the High Court was right in setting aside the demand of duty which was based without reference to the statutory exemption provided to the appellant-company.(Para 6)
JUDGEMENT:
