Himachal HC orders adjustment of excess electricity duty paid by stone crushers within one year
Shimla, August 12
The Himachal Pradesh High Court has disposed of a batch of more than 100 petitions filed by stone crushers and industrial units across the state, directing the government to adjust any excess electricity duty recovered from the petitioners against their future dues within one year.
A Division Bench comprising Justice Vivek Singh Thakur and Justice Ranjan Sharma passed the order while deciding the lead matter, M/s Brajesh Stone Crusher vs State of Himachal Pradesh, along with several connected petitions.
The petitioners, including stone-crushing enterprises and other private industrial units, had challenged the electricity duty rates and notifications issued by the state government under the Himachal Pradesh Electricity (Duty) Act.
While disposing of the petitions, the court directed the authorities to assess the electricity duty already paid by the petitioners and adjust any amount found to have been recovered in excess against future electricity duty liabilities, preferably within one year.
The court further directed that if any shortfall was found after the assessment, the amount would be recovered from the concerned petitioners in accordance with law.
The bench also observed that while the state is entitled to generate revenue through taxation, electricity duty should not be imposed in a manner that becomes "highly excessive or exorbitant" for industrial consumers.
The court emphasised the need to maintain a balance between revenue generation and the growth and sustainability of industries, observing that the taxation mechanism should not impose an undue burden on industrial establishments.
The judgment also underlined the importance of harmonising traditional principles of taxation with modern mechanisms while framing and implementing revenue measures.
With these directions, the court disposed of the batch of writ petitions as well as the pending applications connected with the matter.
— ANI
Reader Comments
This is a balanced approach. State needs revenue for development, but industries shouldn't be overburdened. The court rightly pointed out that taxation shouldn't become 'excessive or exorbitant'. Hope this encourages more industrial growth in Himachal. 🤞
Interesting that 100+ petitions were filed. Clearly a systemic issue with how electricity duty was being calculated. The court's direction to adjust within one year is time-bound, but I hope the assessment process is transparent. GST era mein bhi states need to be careful with additional levies.
As someone from the UK, it's encouraging to see Indian courts protecting small businesses. The balance between revenue collection and industrial sustainability is a challenge everywhere. This judgement sets a good precedent for other states too.
One year is too long for adjustment. These crushers provide employment to many daily wage workers. The state should expedite the process. But good that the issue is resolved now. 👍
This is good for investor confidence. Clear timelines for government action reduce uncertainty. Also appreciate that the court allowed recovery of any shortfall according to law - so the state isn't losing revenue either. Win-win.
Exactly why our judicial system is the
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