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TMI Blog2024 (1) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case M/s Pawan Alloys and Casting Pvt. Ltd. [ 1997 (8) TMI 519 - SUPREME COURT ]. The Supreme Court was examining a case where the U.P. State Electricity Board had granted incentives to set up new industries for a particular period. Subsequently, this benefit was withdrawn by the Board. The Supreme Court examined and held that the withdrawal was made on account of any public interest and hence it was held that it was barred by promissory estoppels and the Board had granted the benefit for a period of three years and the benefit could not be withdrawn before three years. The units had already been set up. The petitioner had set up a small-scale technical textile unit in Village Khera Gani, Tehsil Shahzadpur, District Ambala, which falls in Block C . The industrial unit was covered as per the Notification dated 17.10.2017 showing categorization of blocks, notified on 02.06.2016 (Annexure P-2). The Haryana Government had issued a policy dated 12.06.2018 (Annexure P-9) pursuant to the Enterprises Promotion Policy-2015, where power tariff subsidy upto Rs. 2/- per unit for micro and small enterprises, category C and D blocks was to be provided for a period of thre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt No. 2 made an effort to promote the industries, framed an industrial policy providing incentives to the industry and for its upliftment known in the name of Enterprises Promotion Policy-2015 (Annexure P-1). The object of the policy was to encourage set-up the industry in the State to create large scale employment. Special emphasis has been laid on MSMEs (Micro, Small and Medium Enterprises) and also SMEs (Small Medium Enterprises). The criteria for granting the subsidy was discussed in terms of geographical division wherein the State was divided into four categories of development blocks i.e. A,B,C and D. Blocks B, C and D needs special incentives and micro and small enterprises in category C and D requires special attention in terms of subsidies. Further a medium enterprises had been defined as an enterprise wherein the investment in Plant and Machinery is more than five crores but does not exceed 10 crores. A small enterprise, where the investment is more than 25 lacs but does not exceeding 05 crores is amended under MSMED Act, 2006. A copy of the Notification dated 17.10.2017 showing the categorization of blocks notified on 02.06.2016 is Annexure P-2. 3. Chapter 10 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. The case of the petitioner, finally, is that from the date of setting up the Unit till financial year 2018-2019 and consolidated sum of Rs. 82 lakhs was payable by respondents upto March 2019 as Power Tariff Subsidy. The petitioner thereafter has placed on record the Notification dated 09.1.2019 (Annexure P-12), whereby the Government repealed a notification dated 12.6.2018 and provided for deducting the subsidy amount at the source of UHBVN directly. A letter dated 04.2.2019 (Annexure P-13) was sent to various authorities seeking early action in the matter. The petitioner was thereafter handed over notifications (Annexure P-14) and subsequent sale circulars (Annexure P-15) by the authorities of UHBVN. 11. As per the abovesaid documents (Annexures P-14 and P- 15) the benefit of Power Subsidy Scheme was to be granted only to units having a connected load of 20KWA or less. Pursuant to Filing CWP-8601-2019, decided on 01.4.2019 (Annexure P-16) the writ petition was disposed of giving directions to the respondents to decide the representation of the petitioner claiming benefit of the subsidy. The respondents did not release the subsidy and pass an order dated 28.05.2019 (Annexur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it as they had notice of the curtailment in the exemption before they came to set up their industries. 15. Thereafter, a similar question came up for consideration before the Supreme Court in the case M/s Pawan Alloys and Casting Pvt. Ltd. (supra) . The Supreme Court was examining a case where the U.P. State Electricity Board had granted incentives to set up new industries for a particular period. Subsequently, this benefit was withdrawn by the Board. The Supreme Court examined and held that the withdrawal was made on account of any public interest and hence it was held that it was barred by promissory estoppels and the Board had granted the benefit for a period of three years and the benefit could not be withdrawn before three years. The units had already been set up. Relevant paragraph 38 of the said judgment reads as under :- 38. We fail to appreciate how the aforesaid decision can advance the case of respondent- Board in the peculiar facts of this group of matters. As we have noted earlier here is a converse position where the Board presumably appears to have accepted the guidelines and the directions given by the State of U.P. under Section 78A of the Act and it a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er units which had already come into production by the time the backward areas status was withdrawn from such Panchayats. The writ petition was allowed and the notices asking the petitioner to deposit the tax were quashed and set aside. The petitioners were held entitled to tax exemptions in terms of the Industrial Policy, 2004, Incentives Rules 2004 and the statutory exemptions notifications dated 30th of March 2005 (GST and CST) and 19.01.2006 (VAT) till coming into force of GST regime in the year 2017. 17. The ratio of all three abovesaid judgments is directly applicable to the facts to the present case. 18. The petitioner had set up a small-scale technical textile unit in Village Khera Gani, Tehsil Shahzadpur, District Ambala, which falls in Block C . The industrial unit was covered as per the Notification dated 17.10.2017 showing categorization of blocks, notified on 02.06.2016 (Annexure P-2). The Haryana Government had issued a policy dated 12.06.2018 (Annexure P-9) pursuant to the Enterprises Promotion Policy-2015, where power tariff subsidy upto Rs. 2/- per unit for micro and small enterprises, category C and D blocks was to be provided for a period of three year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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