By S A Ishaqui
Hyderabad, Feb. 13: The Andhra Pradesh High Court directed the Central Power Distribution Company Ltd to extend concessional rate of tariff at Rs 1.75 per unit to food processing industries as an incentive announced by the state government under GO Ms. No. 333 in 2003.
The court ruled that all the concessions (except capital subsidy) provided under the state policy on food processing industries, shall be extended to the existing units treating them as new units.
Justice C.V. Ramulu while allowing the writ petitions filed by M/s. Kalyan Roller Flour Mills Pvt. Ltd and others, ruled that the GO Ms. No. 179 issued on June 22, 2005 has no retrospective effect and the incentives extended under the GO No. 333 do not stand cancelled. The judge said: “The GO No. 333 was issued after making a study of the existing industries and the difficulties they face in sustaining themselves. Therefore, it cannot be said that the existing units are not entitled to incentives and concessions under the GO or that the incentives and concessions already extended in favour of the petitioner stand either cancelled or invalidated.”
The court observed that the tariff, something like a tax holiday, which was already extended for the sustenance of the existing food processing units, cannot be said to have been taken away under GO No. 179. The court said that no invidious discrimination could have been made between the existing and the fresh food processing units in availing tariff concessions. Justice Ramulu was of the opinion that “the very concept of extending incentives and concessions is for sustenance of the industry already existing.”
The judge set aside the orders passed by the CPDCL authorities in cancelling power tariff concessions to the petitioners’ units.
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