2026:CGHC:11782-DB NAFR BABLU RAJENDRA HIGH COURT OF CHHATTISGARH AT BILASPUR BHANARKAR Digitally signed by BABLU RAJENDRA BHANARKAR Date: 2026.03.13 10:11:51 +0530 WA No. 213 of 2026

1 - State Of Chhattisgarh Through- The Secretary, Department Of Energy, Mahanadi Bhawan, Mantralaya, Nava Raipur, Atal Nagar, Raipur, District Raipur, Chhattisgarh

2 - Special Secretary Department Of Energy, Mahanadi Bhawan, Mantralaya, Nava Raipur, Atal Nagar, Raipur, District Raipur, Chhattisgarh.

3 - Chief Electrical Inspector Government Of Chhattisgarh, B-Block, Second Floor, Indravati Bhawan, Nava Raipur, Atal Nagar, Raipur, District Raipur, Chhattisgarh.

... Appellants versus M/s. ACB India Ltd. A Company Incorporated Under Provisions Of The Companies Act Having Registered Office At C-102, L.G.F. Surya Enclave, Multan Nagar, New Delhi 110056 Having Plant At Village Kasaipali, Post Jawali, District Korba, Chhattisgarh, Represented Through Its Authorised Representative, Sh. Arbind Kumar Singh.

... Respondent For Appellants : Mr.P.K.Bhaduri, Deputy Advocate General For Respondent : Mr.Ravindra Shrivastava, Senior Advocate through video conferencing assisted by Mr.Abhishek Vinod Deshmukh, Advocate Hon'ble Shri Ramesh Sinha, Chief Justice Hon'ble Shri Ravindra Kumar Agrawal, Judge Judgment on Board Per Ramesh Sinha , Chief Justice

12.03.2026

1. Heard Mr.P.K.Bhaduri, learned Deputy Advocate General for the appellants/State as well as Mr.Ravindra Shrivastava, learned Senior Advocate appearing through video conferencing assisted by Mr.Abhishek Vinod Deshmukh, learned counsel appearing for the respondent on IA No.01/2026, which is an application for condonation of delay of 24 days in filing the present writ appeal.

2. On due consideration, IA No.01/2026 is allowed. Delay of 24 days in filing the writ appeal is hereby condoned.

3. With the consent of learned counsel for the parties, the matter is heard finally.

4. The appellants/State have filed this writ appeal against the order dated 09.12.2025 passed by the learned Single Judge in WPC No.3685/2023, whereby the writ petitions preferred by the respondent / writ petitioner have been allowed by setting aside the demand dated 22.05.2023 raised by the appellants/State towards electricity duty.

5. Brief facts necessary for disposal of the case are that the respondent Company had set up a captive power plant of 270 MW in village Ksaipali which comprises of two units, each of 135 MW. On 5.12.2013 the respondent Company entered into a power purchase agreement with Chhattisgarh State Power Trading Co. Ltd. to meet its power requirement. Appellant No.2 exercising the powers vested in Section 3B and Section 3-C of the Chhattisgarh Electricity Duty Act, 1949 (for short ‘the Act of 1949’) issued a Notification dated 12.8.2016 granting concession in payment of electricity duty to certain producers including captive power generation plants. Consequently, the respondent Company has also been granted exemption/concession in payment of electricity duty and since then the respondent has been paying electricity duty on concessional rates. As per notification dated 12.8.2016, rate of electricity duty applicable on consumption would be 15% of tariff till 31.3.2016 and thereafter 10% of average cost of supply and such exemption to the respondent Company was to start from 1^st April 2016 or date of commercial production, whichever is later, till 12 years and thereafter rate of average cost of supply for time being in force. Appellant No.3 issued notice of demand to the respondent demanding arrears of electricity duty mentioned therein for the period from January 2017 to March 2023. The Respondent Company submitted letter dated 17.8.2021 requesting appellant No.3 to recalculate electricity duty and interest amount, but the same failed to evoke any response till date. The State Government vide Notification dated 11.10.2022 revised the electricity duty by making certain changes in slabs. In respect of category of consumers in which the