In Brief
Essar Steel India Ltd. (ESSAR Steel), a steel manufacturer, held 42% equity in ESSAR Power Limited (ESSAR Power), a generating company set up to supply power to ESSAR Steel and Gujarat Electricity Board. ESSAR Steel sought exemption from electricity duty on power consumed, claiming it was engaged in joint generation under the Bombay Electricity Duty Act, 1958. The Supreme Court held that exemption requires generation 'for its own use or for the use of industrial undertakings which are jointly generating,' but 58% of power was allocated to the Electricity Board under a separate Power Purchase Agreement, with which joint generation was not established. Additionally, ESSAR Steel's alternative claim under a 1992 notification failed because generating sets were commissioned in 1995, not the required period of 1991-1992. The Court upheld strict construction of exemption notifications and dismissed the appeal.", <parameter name="articles_cited">[]
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