ORDER :

1. The instant bunch of writ petitions has been preferred by the petitioner M/s Guljag Industries Ltd. for assailing action of the respondents in demanding electricity duty from the petitioner and to assail the orders passed by the Appellate Authority and the Revisional Authority dated 15.03.2010 and 17.10.2017 respectively, affirming the demand for electricity duty raised against the petitioner by the Commercial Taxes Authority, Jodhpur.

2. Shri Sanjeev Johari, learned Senior Counsel assisted by Shri Lalit Parihar, Advocate, submitted that the petitioner company is involved in various commercial activities and established a captive power plant for the purpose of its own consumption and the consumption of its sister concern “Guljag Gases Pvt. Ltd.” He submitted that both the companies are closely held and the Board of Directors belong to same family. The industrial units of both the companies are located within the same chunk of land bearing Khasra No.166 at Village Palari Khichiyan, District Jodhpur. Thus, as per Shri Johari, the consumption of electricity by sister concern Guljag Gases Pvt. Ltd., has to be treated as consumption of captive power and not as sale and hence, the same cannot be subjected to electricity duty.

3. The impugned action of the respondents in demanding electricity duty from the petitioner on the premise that the petitioner company, indulged in sale of electricity to Guljag Gases Pvt. Ltd., is totally unjustified and illegal and hence, the impugned demand notices and so also, the orders passed by the Appellate Authority and Revisional Authority, affirming the demand of electricity duty vide impugned demand orders, deserve to be struck down.

4. Shri Johari, further submitted that the Deputy Commissioner, (Appeals), Commercial Taxes Department, Jodhpur, decided the controversy in favour of the petitioner vide order dated 08.10.2003 (Appeal No.13/RST/JU-B/203-2004), but the Revisional Authority, without any justification, accepted the revisions of the respondent department and set aside the orders passed by the Deputy Commissioner. His fervent contention was that the order dated 08.10.2003, passed by the Deputy Commissioner, (Appeals), Commercial Taxes Department, Jodhpur, in favour of the petitioner, stands all tests of reasonableness and legality and hence, there was no justification for the Revisional Authority to have interfered therein. He contended that the Corporate Veil has to be lifted and it would become clear that both the companies are functioning in the same premises and the business interests are so intermixed that the two cannot be separated.

5. The Board of Directors of both companies are members of the same family and hence, the company Guljag Gases Pvt. Ltd., is nothing but a subsidiary of the petitioner M/s. Guljag Industries. In support of his contentions, placed reliance on Hon’ble the Supreme Court Judgment in the case of State of U.P. Vs. Renusagar Power Co. & Ors. reported in (1988) 4 SCC 59, and urged that the writ petitions deserve acceptance and the impugned notices and the orders passed by the Appellate Authority and the Revisional Authority, deserve to be declared invalid and quashed.

6. Per contra, Shri Hemant Dutt, learned counsel representing the respondents Commercial Taxes Department, urged that the view taken by Hon’ble the Supreme Court in the case of M/s. Renusagar Power Co. (supra), has been distinguished in the case of A.P. Gas Power Corporation Ltd. Vs. A.P. State Regulatory Commission & Anr. reported in (2004) 10 SCC 511.

7. He urged that the circular dated 12.12.1989 issued by the department, makes it clear that the exemption from paying electricity duty on consumption of energy is available only to a person who has generated the same for his /its own use. He urged that it is an admitted position, that the petitioner sold electricity to the company Guljag Gases Pvt. Ltd., and such transaction cannot be covered under the condition “consumption of electricity genera