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HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
ARUN MONGA, SUNIL BENIWAL
Ultra Tech Cement Ltd. – Appellant
Versus
Energy Department, Government Of Rajasthan – Respondent
JUDGMENT :
Arun Monga, J.
D.B. Civil Writ Petition No. 1151/2023.
1. The issue raised by petitioner before us is qua the enforceability of policy assurances made by the State in the context of renewable energy promotion (solar power), and the extent to which such assurances can be withdrawn, allegedly to the detriment of petitioners/investors who have acted upon them.
2. The State of Rajasthan, with a view to promote solar energy, introduced the Solar Policy, 2019, which, inter alia, assured exemption from payment of electricity duty for a period of seven years from the date of commissioning of solar power plants. Acting upon such representation, the petitioner made investments in establishing its captive solar power project.
3. The Petitioner No. 1 company, UltraTech Cement Limited (“UltraTech”), operates two cement manufacturing plants in Rajasthan, namely Aditya Cement Works and Kotputli Cement Works, for which it has established captive solar power generation facilities after declaration of the State Solar policy.
4. The grievance of the petitioner arises from the subsequent action of the State, whereby the benefit of exemption was withdrawn by way of impugned amendment dated 10.05.2
The State can withdraw exemptions from electricity duty but must provide reasonable notice to affected captive power generators to allow adjustment.
Section 3(B)(b) of Act enables levy of electricity duty upon cancellation of exemption.
Electricity duty exemption notification linked to 'period of eligibility' in Eligibility Certificate under incentive scheme extends automatically with Certificate extension; saved by subsequent Act w....
The State is bound by its promises under the Industrial Policy, and failure to issue enabling notifications for incentives constitutes arbitrary action, invoking the doctrine of promissory estoppel.
The main legal point established in the judgment is that the State Government is bound by the principle of Promissory Estoppel and cannot arbitrarily withdraw promised benefits, especially when indiv....
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