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Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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AI Drafter ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: Whether a reference by the licensee to the Central Electricity Authority under paragraph XVI of the Sixth Schedule barred the Board from constituting a Rating Committee under Section 57A of the Electricity (Supply) Act, 1948.
Analysis: The arbitration clause in paragraph XVI formed part of the licence between the State Government and the licensee, and could operate only between those parties unless the Act expressly substituted the Board in that place. Section 76 recognised arbitration in disputes between the Board and a licensee only where the Act specifically so provided, and no provision was shown making a dispute about non-compliance with the Sixth Schedule referable to the Authority as between the Board and the licensee. Section 60 could not be used to treat the Board as having replaced the State Government for the purpose of paragraph XVI. The second proviso to Section 57A could bar constitution of a Rating Committee only when the statutory conditions coexisted, including a valid reference under paragraph XVI.
Conclusion: The reference made against the Board was not a reference under paragraph XVI so as to bar constitution of the Rating Committee; the Board was entitled to proceed with the Committee.
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