A Bench of Justices MR Shah and Sanjiv Khanna held that Essar Steel did not comply with a stipulation under the exemption certificate granted to it by the government with regard to purchase of natural gas and naphtha at concessional rates under a sales tax exemption incentive.
The Court held that the incentive benefit given to Essar Steel could not have been transferred to Essar Power, since power producing industries were not eligible for the same.
“We have held that Essar Steel Limited did not comply with original entry. As per latest incentive policy, benefit was eligible to certain industries. Power producing industries were ineligible for the same and thus Essar Power was not eligible for purchase tax exemption,” the Court said.
Source: Barandbench
