TaxTMI 
TaxTMI 
2017 (11) TMI 1681
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....opriate writ, order or direction declaring that the diesel price hike introduced as per Ext.P1 to the Kerala State Road Transport Corporation, compelling the petitioner to pay enhanced rate than while purchasing diesel from private or other diesel bunk, is wholly arbitrary, illegal, unjust, unconstitutional and violative of Article 12 and 14 of the Constitution of India; (ii) Issue any appropriate order commanding the 1st respondent to withdraw the dual pricing policy of diesel introduced as per Ext.P1 or in the alternative accord exemption to the petitioner, from the category of bulk consumer, and treat the petitioner as a retail customer for the purpose of diesel purchasing. (iii) Issue a writ of mandamus or any other appropriate writ, order or direction commanding the respondents to refund the excess diesel charge collection in pursuance to clause (b) of Ext.P1, with interest at the treasury rate, with effect from 17.01.2013 to the petitioner, forthwith. 4. The Ministry of Petroleum, Government of India, had taken a decision not to make the payment of subsidy to the bulk consumers on purchase of diesel. Consequently, the bulk consumers were required to make the payment, which....
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.... part of the first respondent to provide maximum concession/subsidy/benevolence in the matter of sale of diesel to the State Road Transport Corporation. The respondents have ignored their constitutional obligation. It would make very difficult, the payment of pension to the pensioners, and salary to the existing employees. Prayer was made to direct the Respondent No.1 to withdraw the dual pricing policy of diesel that had been introduced; in the alternative, to accord exemption to the writ petitioners from the category of bulk consumer, treating them as a retail customer for the purposes of diesel purchasing. 8. The stand of the Government of India is that the policy has been made after due deliberations. In the year 2002, the Administered Pricing Mechanism for petroleum products was dismantled, with the decision that the pricing of all petroleum products, except those of PDS Kerosene and Domestic LPG, would be market-determined. However, the Government of India did not allow a full de-control of the price of Diesel and continued to regulate the same. The OMCs incurred under-recovery on sale of diesel and other regulated products due to non-revision of prices in line with the inte....
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....s: Increase the retailed selling prices of diesel in the range of 40-50 paise per liter per month (excluding VAT as applicable in different States/Union territories) until further orders. Sell diesel to all consumers taking bulk supplies directly from the installations of the Oil Marketing Companies (for short "the OMCs") at the non-subsidized market-determined price with immediate effect. The OMCs will not be eligible for any subsidy on such direct sale of diesel to bulk consumers. Revise annual cap on the subsidized domestic LPG cylinders from 3 to 5 for the period from 14.09.2012 to 31.03.2013 and from 6 to 9 w.e.f. 01.04.2013. This will be subject to the condition that no refunds will be admissible on any LPG domestic cylinders already supplied to LPG consumers at the non-subsidized price during the period from 14.09.2012 to date. 12. This National Policy, it is urged on behalf of the Government of India, came after deliberations for over a decade. It was not sudden or arbitrary. The primary objective behind the said National Policy for pricing reforms, undertaken by the Government of India, was the growing imperative for fiscal consolidation and the need for reducing subsidy....
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....rising in international oil prices and the domestic inflationary conditions. It was in June 2010 that the Petrol prices were deregulated and Government of India also stated its intent that HSD shall be made market-determined in a phased manner. iii. Since the OMCs procure the controlled petroleum products from the domestic Refineries at Refineries Transfer Price based on Import/Trade Parity principles, the desired basic selling prices for these products are determined based on the weighted average Refineries Transfer Price plus costs and margins as approved by Government of India. The difference between the Desired Basic Selling Prices (in line with the price for the concerned product in the international oil market) vis-a-vis the Actual Basic Selling Prices (maintained as per the of the Government due to socio-economic reasons) of the controlled petroleum products leads to "Under-Realizations" to the PSU OMCs. The total under-realizations incurred by PSU OMCs on controlled petroleum products and Share of Diesel in total under-recovery since 2004-05 is tabulated below: (Rs. in crore) Year Under-realisations on sensitive petroleum products Under-realizations on Diesel ....
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....gally enforceable right against the Government to grant a concession, except to enjoy the benefits of the concession during the period of its grant. Enjoyment is defeasible one and can be taken away in exercise of very power under which such exemption was granted. This Court observed : "25. An exemption is by definition a freedom from an obligation which the exemptee is otherwise liable to discharge. It is a privilege granting an advantage not available to others. An exemption granted under a statutory provision in a fiscal statute has been held to be a concession granted by the State Government so that the beneficiaries of such concession are not required to pay the tax or duty they are otherwise liable to pay under such statute. The recipient of a concession has no legally enforceable right against the Government to grant of a concession except to enjoy the benefits of the concession during the period of its grant. This right to enjoy is a defeasible one in the sense that it may be taken away in exercise of the very power under which the exemption was granted. (See Shri Bakul Oil Industries v. State of Gujarat (1987) 1 SCC 31, Kasinka Trading v. Union of India (1995) 1 SCC 274 a....