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Vasavadatta Cements Vs. State of Karnataka and ors. - Court Judgment

SooperKanoon Citation

Subject

Sales Tax/VAT

Court

Karnataka High Court

Decided On

Case Number

Writ Petition No. 11456 of 2000

Judge

Reported in

(2007)10VST667(Karn)

Acts

Karnataka Sales Tax Act, 1957; Electricity Supply Act, 1948; Indian Electricity Rules, 1956

Appellant

Vasavadatta Cements

Respondent

State of Karnataka and ors.

Appellant Advocate

Pramod N. Kathavi, Adv.

Respondent Advocate

T.K. Vedamurthy, High Court Government Pleader

Excerpt:


.....parent. deduction towards the personal expenses of the deceased cannot be uniformly taken at one-third or one-half, as it would depend on the facts of the case. nominal compensation has been awarded in the past, in cases involving children above 5 years and below 10 years and so also in the case of children below 5 years need not be a rule all time to come. with improved and assured basic health, educational and other needs becoming available to the general populace in greater numbers, by the year, if not by the day, it is possible to award higher amounts of compensation even in respect of such cases and in view of the progressive increase in longevity, denial of compensation on the basis of mortality rates amongst very young children in the past decades, cannot be sustained. section 168: [anand byrareddy, j] determination of compensation - death of boy aged about 13 years in bus accident - held, notional income would be about rs.15,000/- per annum. taking age of younger of parents, namely, mother as 39 years, appropriate multiplier would be 14. claimants would be entitled to rs.1,40,000/- (15,000x 1/3-5,000) (15,000-5000x14) towards loss of dependency. adding..........on captive generation of power, delegation of powers to the officers of the electrical inspectorate and refund of sales tax on consumption of diesel orders--reg.government order no. pwd 76 eip 85, bangalore dated october 30, 1985read : (1) government letter no. pwd 76 eip 85, dated april 6, 1985(2) correspondence ending with letter no. cejg/d1/d2/ 1924/85-86 dated june 1, 1985 from the chief electrical inspector to government, bangalorepreamble:in the background of prevailing acture (sic) shortage of power in the state, the question of evolving remedial measures to encourage the industry's electricity consumers for setting up of captive generation was engaging attention of government for some time past, so that the load/pressure on the state grid could be reduced to some extent. accordingly, government have exempted sales tax payable on the sale of diesel captive generation units. further, the government have also exempted from payment of electricity tax on captive generation from thermal and diesel. government have also directed the concerned authorities that the applications seeking approval/ permission for installation of captive generating units shall be disposed of quickly.....

Judgment:


ORDER

D.V. Shylendra Kumar, J.

1. Writ petition is by a dealer registered under the provisions of the Karnataka Sales Tax Act, 1957 (for short, 'the Act').

The petitioner has sought for quashing of the order dated February 4, 2000 (copy at annexure H) passed by the Chief Electrical Inspector, Government of Karnataka, whereunder the concerned officer had indicated that while the petitioner was entitled for refund in respect certain sales tax payments made for a particular period mentioned in the order but also declined to grant the remaining amount of refund claimed. It is aggrieved by this order, the present writ petition is filed.

2. Submission of Sri Pramod N. Kathavi, learned Counsel for the petitioner, is that the order declining refund in respect of major portion of its claim which was for a sum of Rs. 3,48,290 and allowing refund to an extent of Rs. 23,760 under the impugned order is clearly contrary to the Government notifications allowing refunds in respect of persons like the petitioner who had set up certain industries pursuant to certain incentive schemes offered by the Government as its industrial policy ; that on an erroneous understanding of the relevant notification and referring to a notification which was not relevant to the petitioner, the authority has declined entitlement for refund ; that the order requires to be quashed, etc.

3. Learned Counsel for the petitioner relying upon the Government Order No. DE 210 EEB 95, Bangalore, dated November 23,1995 for entitlement of refund read with the Government Order No. PWD 76 EIP 85, Bangalore, dated October 30, 1985 (copy at annexure A) for such entitlement, submitted that the concerned officer by a wrong reference to the Government order No. DE 97 PPC 92, Bangalore, dated June 8,1992 has declined such claim for refund.

4. The Government Order No. PWD 76 EIP 85, Bangalore, dated October 30, 1985 reads as under :

Proceedings of the Government of KarnatakaSubject: Incentive on captive generation of power, delegation of powers to the officers of the electrical inspectorate and refund of sales tax on consumption of diesel orders--Reg.

Government order No. PWD 76 EIP 85, Bangalore dated October 30, 1985

Read : (1) Government Letter No. PWD 76 EIP 85, dated April 6, 1985

(2) Correspondence ending with letter No. CEJG/D1/D2/ 1924/85-86 dated June 1, 1985 from the Chief Electrical Inspector to Government, Bangalore

Preamble:

In the background of prevailing acture (sic) shortage of power in the State, the question of evolving remedial measures to encourage the industry's electricity consumers for setting up of captive generation was engaging attention of Government for some time past, so that the load/pressure on the State grid could be reduced to some extent. Accordingly, Government have exempted sales tax payable on the sale of diesel captive generation units. Further, the Government have also exempted from payment of electricity tax on captive generation from thermal and diesel. Government have also directed the concerned authorities that the applications seeking approval/ permission for installation of captive generating units shall be disposed of quickly and to issue no objection certificate to the applicants for captive generating units.

Government have decided to delegate the powers to the Divisional and District Level Officers in the Electrical Inspectorate for issue of suitable certificates for the diesel consumed on captive generation units in order to claim sales tax refund by the concerned industrial unit. The Chief Electrical Inspector to Government in his letter cited at (2) above has sent proposals to Government for delegation of powers to the Deputy Electrical Inspector to Government in his letter read at (2) above has sent proposals to Government for delegation of powers to the Deputy Electrical Inspector and Electrical Inspectors and has sought orders of Government in this behalf.

Government have examined the matter in all its aspects and considers it necessary to issue appropriate orders in the matter.


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