The transmission of electricity at a switching-cum-substation constitutes a "manufacturing process" within the meaning of the Factories Act, 1948 and, therefore, falls within the definition of "industry" under the Town and Country (Planning and Development) Act, 1979, attracting the lower rate of development charges applicable to industrial use.

( 1 ) THIS appeal is arising out of an order passed by the Hon'ble First Court on October 8, 2002 in the writ petition when His Lordship was pleased to hold that both the authorities below erred in law in holding that the proposal of construction of switching-cum-substation by the writ petitioners/ respondent herein falls within the ambit of "commercial use".

( 2 ) HIS Lordship was pleased to set aside the said orders and directed the bhatpara Municipality (hereinafter referred to as "the said Municipality") to mutate the names of CESC Ltd. upon payment of the mutation fees and the charge for conversion of the use of land from "agriculture to industrial one" at the rate fixed by the West Bengal Municipal Act.

( 3 ) BEING aggrieved by the said order passed by the Hon'ble First Court the appellant preferred this appeal.

( 4 ) THE facts of the case briefly are as follows: the CESC Ltd. purchased 80 cottahs of "agricultural land" and applied for mutation of the said property in their name before the Municipality. On July 4, 2001, the CESC Ltd. applied for permission of "lay out" application under section 193 of the West Bengal Municipal Act (hereinafter referred to as "the said act") for installation of 132/220 KV switching-cum-substation for augmentation of power distribution. On July 5, 2001 the said Municipality requested the cesc Ltd. to deposit a sum of Rs. 10,96,990/- for "development charges" towards the "change" of "use" of land. The CESC Ltd. gave a reply on July 31, 2002 stating that the definition of "manufacturing process" under section 2 (k) of factories Act, 1948 means "generating, transforming and distributing" power and the same would come within the definition of "industry" under section 2 (10) of the Town and Country (Planning and Development) Act, 1979 (hereinafter referred to as "the 1979 Act") and thereby the CESC Ltd. agreed to pay at the rate of Rs. 55/- per sq. metre and not at the rate of Rs. 205/- per sq metre as claimed by the Municipality.

( 5 ) ON December 31, 2001, the Municipality held that "generating, transforming and transmitting" of power cumulatively cannot take place in the switching-cum-substation. Hence, the proposed change of "land use" constitutes commercial activities.

( 6 ) THEREAFTER, the CESC Ltd. filed an appeal before the appellate authority and on May 15, 2002, the appellate authority disposed of the said appeal construing the "sub-station" is a "commercial" one.

( 7 ) ON September 13, 2002 the CESC Ltd, filed a writ petition challenging the said order passed by the appellate authority. The Hon'ble First Court after hearing the parties upheld the submission made on behalf of the writ petitioner and allowed the said application. The Municipality preferred this appeal from the said judgment and/or order dated October 8, 2002.

( 8 ) MR. Shibaji Sen, learned Senior Advocate appearing on behalf of the appellant drew our attention to section 102 of the 1979 Act and contended that the Municipality is entitled to impose levy for developing the land in question. According to him, under section 103 of the said 1979 Act, the change of 'land use" from "agriculture" to "industry", levy is Rs. 55/- per sq. metre whereas the conversion from "agriculture to commercial use" levy is Rs. 205/- per sq metre. Admittedly, the land in question is "agricultural". He also contended that the "commercial use" means use of any land or building or plant thereof for the purpose of commerce or for storage of goods or as an office whether attached to any industry or otherwise.

( 9 ) SECTION 2 (10) of the said Act defines "industry" and "industry" within the ambit of the 1979 Act includes the carrying out of the "manufacturing process" as defined in the Factories Act, 1948 and the expression "industry" shall be construed accordingly.

( 10 ) MR. Sen relied upon the following decisions in support of his contention reported in 1974 (3) SCC 108 (Workmen of Delhi Electric Supply Undertaking vs. Management of Del

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