In Brief
The State of Jharkhand promised in its 2012 Industrial Policy a 50% rebate on electricity duty for five years to industrial units with captive power plants. Although the State eventually issued the exemption notification on 8 January 2015, this occurred after a nearly three-year delay despite the policy's mandate to do so within one month. The respondent, a metallurgical unit, challenged the prospective effect of the notification, seeking retroactive exemption for FYs 2011-12, 2012-13, and 2013-14. The Court upheld the High Court's decision, holding that the State's delay and prospective notification breached legitimate expectations engendered by the policy and violated Article 14's guarantee of non-arbitrariness. The respondent was granted exemption for FYs 2012-13 and 2013-14 (not 2011-12, as entitlement arises only from the year following production), with the overpaid duty adjusted against future liability.
The lawyer headnote and full judgment text are available to registered users.