Electricity duty remission under tourism incentive scheme upheld for full sanctioned period despite delayed meter sealing.

Electricity duty remission under the Tourism Incentive Scheme could not be curtailed to the date of testing and sealing of meters where the eligibility certificate sanctioned the full incentive period. The governing notification required separate meters for the expanded unit, but did not confine remission to the expanded portion or authorise reduction of the sanctioned benefit because sealing occurred later. The record showed timely application and steps taken by the petitioner for installation and testing, while the delay in sealing was attributable to the electricity authority. The unexplained rejection of the representation was also found unsustainable, and the full sanctioned remission for the entire period was upheld.

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Issues: Whether the petitioner was entitled to the full sanctioned period of exemption or remission of electricity duty under the Tourism Incentive Scheme, and whether curtailment of that benefit to the date of testing and sealing of meters was justified.

Analysis: The eligibility certificate granted under the tourism incentive scheme sanctioned electricity duty remission for the full eligibility period. The governing notification required separate meters for the expanded portion of the unit, but did not limit the remission to the expanded portion alone or authorize curtailment of the sanctioned period merely because the meters were tested and sealed later. The record showed that the petitioner had applied in time and had taken steps for installation and testing of meters, while the delay in sealing was attributable to the electricity authority. The rejection of the petitioner's representation also contained no reasons. In these circumstances, reduction of the remission period was found unjustified.

Conclusion: The petitioner was held entitled to the full benefit of electricity duty exemption or remission for the entire sanctioned period, and the respondents were directed to make good the incentive loss of Rs. 18.53 lakhs.

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