KEPLER RESOURCES PRIVATE LIMITEDversusSTATE OF GUJARAT

     C/SCA/10617/2025                                 JUDGMENT DATED: 19/01/2026




              IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                R/SPECIAL CIVIL APPLICATION NO. 10617 of 2025


FOR APPROVAL AND SIGNATURE:


HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE                              Sd/-
================================================================
              Approved for Reporting                 Yes          No
                                                                  No
================================================================
                        KEPLER RESOURCES PRIVATE LIMITED
                                      Versus
                             STATE OF GUJARAT & ORS.
================================================================
Appearance:
MR NAMAN H KINKHABWALA(8831) for the Petitioner(s) No. 1
MR NIKUNJ KANARA AGP for the Respondent(s) No. 1,2
MR SP HASURKAR(345) for the Respondent(s) No. 3
================================================================

 CORAM:HONOURABLE MR. JUSTICE ANIRUDDHA P. MAYEE

                                 Date : 19/01/2026

                                 ORAL JUDGMENT


1.       RULE. Rule returnable forthwith. Mr. Nikunj Kanara,

learned AGP waives service of rule for the respondent Nos.1 and

2 and Mr. S.P.Hasurkar, learned advocate waives service of rule

for the respondent No.3.


2.       By the present Special Civil Application, the petitioner is

praying for the following reliefs:-

         “8A)    Admit and allow this Petition;

         B)      Be pleased to quash and set aside the communication dated
         25/02/2025 (annexed at annexure-E).




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         C)      Be pleased to direct respondent No.2 to rectify/modify Final
         'Certificate for eligibility for exemption from payment of electricity duty'
         dated 23/09/2024 issued to the petitioner, and thereby change the
         period of exemption from 27/2/2024 - 28/11/2028 to 29/11/2023 -
         28/11/2028

         D)      By way of ad-interim relief be pleased to restrain the respondent
         authorities from charging any exempted electricity duty for the period of
         29/11/2023 to 26/02/2024 to the petitioner.”


3.       It is the case of the petitioner that the petitioner is a

Private       Limited     Company       and          is   into   the    business          of

manufacturing of FERRO VANDIUM. That since the petitioner

was a new industrial undertaking, the petitioner had opted for

Certificate of Eligibility for Exemption from Payment of Electricity

Duty under the provisions of Section 3(2)(vii) of the Gujarat

Electricity Duty Act, 1958 [“Act, 1958” for short]. Learned

counsel submits that the petitioner was eligible and entitled for

the exemption under the Act, 1958. The petitioner had filed

Form-E as per Rule 11 of the Bombay Electricity Duty (Gujarat)

(Amendment) Rules, 2010 [“Rules, 2010” for short]. He submits

that Form-E has to be submitted to the Collector of Electricity

Duty, Gandhinagar within 90 days from the date on which the

petitioner company had started manufacturing/production of its

goods for the first time. Learned counsel for the petitioner

submits that the petitioner started its first production from


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  C/SCA/10617/2025                         JUDGMENT DATED: 19/01/2026




29.11.2023 and therefore, the petitioner had to submit Form-E

on or before 26.02.2024. He submits that on the 90 th day i.e. on

26.02.2024, the petitioner filled the online Form and uploaded

the same. However, due to technical error in the website of the

respondent No.2 authorities, the Form-E of the petitioner did not

get uploaded on 26.02.2024 and is shown to have been

submitted on 27.02.2024. He submits that due to the said fact,

the respondent No.2 issued the Final Certificate of Eligibility

from Exemption from Payment of Electricity Duty for the period

from 27.02.2024 to 28.11.2028. He submits that the respondent

No.2 has deducted the period 29.11.2023 to 26.02.2024 from the

total exemption period because the Form-E was submitted after

90 days. He submits that this action on the part of the

respondent No.2 is arbitrary and unjust and the same be

quashed and set aside. Learned counsel submits that the belated

uploading of the Form cannot be attributed to the petitioner

since there was a technical error in the website of the

respondent No.2 authorities due to which the Form-E was

uploaded only on 27.02.2024. He submits that due to error in

the website of the respondent No.2, the petitioner cannot be

compelled to incur financial loss. He submits that the petitioner

made a representation to the respondent authorities requesting


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     C/SCA/10617/2025                                    JUDGMENT DATED: 19/01/2026




to make correction in the Final Certificate dated 23.09.2024 in

respect of the period of exemption duty, however, the same has

been rejected. He, therefore, submits that this Court may kindly

quash the communication dated 25.02.2025 (Annexure-E to the

petition) and modify the Final Certificate of Eligibility for

Exemption from Payment of Electricity Duty by making the

period of exemption from 29.11.2023 to 28.11.2028.


4.       Per     contra,   Mr.     Nikunj      Kanara,      learned       Assistant

Government Pleader for the respondent No.2 authorities submits

that the petitioner had claimed exemption from payment of

electricity duty under the provisions of Section 3(2)(vii) of the

Act, 1958. The petitioner had to accordingly make an application

to the Collector of Electricity Duty in Form-E within 90 days

from the date it begins production of goods for the first time. The

petitioner started its production on 29.11.2023 and therefore,

the     petitioner      had   to   upload      the   Form-E       on    or    before

26.02.2024. He submits that the petitioner has uploaded the

Form-E only on 27.02.2024 and since the same was beyond the

period of 90 days, as stipulated under the Rules, the Final

Certificate issued to the petitioner has correctly mentioned the

period of exemption from 27.02.2024 to 28.11.2028. He submits



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     C/SCA/10617/2025                                      JUDGMENT DATED: 19/01/2026




that the Certificate has been issued in terms of the Rules, 2010

and the same is just and proper. The petitioner had 90 days to

complete the process, however, the petitioner has opted to do so

only at the last moment for which the respondent No.2

authorities cannot be faulted with. He submits that since the act

of uploading was on the part of the petitioner, no fault can be

attributed to the respondent No.2 authorities. He, therefore,

submits that the present Special Civil Application is devoid of

merits and be dismissed.


5.       Heard learned counsels for the parties, considered the

submissions and perused the documents on record.



6.       Section 3(2)(vii) of the Gujarat Electricity Duty Act, 1958

reads thus:-

         “3.     [Subject to the provisions of sub-section (2) 4[(2AA), (2AAA), (2B)]
         and (3)], there shall be levied and paid to the State Government a duty
         on the consumption of electricity (hereinafter in this Act referred to as
         "electricity duty") at the rates specified below:-

                 (a)    the electricity duty shall be payable by consumers other
                 than those referred to in sub-clauses (i) and (ii) of clause (a) of
                 section 2, at the rates specified in Schedule I to this Act, and

                 (b)    the electricity duty shall be payable by consumers
                 referred to in sub-clauses (i) and (ii) of caluse (a) of section 2, at
                 the rates specified in Schedule II to this Act.]



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         (2)     Electricity duty shall not be leviable on the units of energy
         consumed, -


                 (vii)   for motive power and lighting in respect of premises used
                 by a new industrial undertaking for industrial purpose, subject
                 to such terms and conditions as may be prescribed, for a period
                 of five years from the date on which such industrial undertaking
                 begins to manufacture or produce goods for the first time:

                 Provided that по undertaking shall be new industrial entitled for
                 exemption from payment of electricity duty under this clause,
                 unless it has obtained a certificate regarding eligibility for such
                 exemption in prescribed form by making an application therefore
                 in such form, within such period and to such officer as may be
                 prescribed.

                 Explanation.-For the purpose of this clause "a new industrial
                 undertaking" means any industrial undertaking which-

                 (a)     is not formed by the splitting up or the reconstruction of a
                 business ог undertaking already in existence in the State; or

                 (b)     is not formed by transfer to a new business or
                 undertaking of 7[*] machinery or plant previously used in India
                 for any industrial purpose, of such value in relation to total value
                 of the aforesaid investments, as the State Government may, by
                 notification in the Official Gazette, specify; or

                 (c)     is   not   an   expansion      of   the   existing   business      or
                 undertaking in the State);”


7.       According to the said provision, any new industrial

undertaking which begins manufacturing or production of goods

for the first time, then it is entitled to exemption from payment of


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  C/SCA/10617/2025                                     JUDGMENT DATED: 19/01/2026




electricity duty for a period of 5 years. For getting the exemption

under Section 3(2)(vii) of the Act, 1958, such an industrial

undertaking has to follow the procedure prescribed under Rule

11 of the Bombay Electricity Duty (Gujarat) (Amendment) Rules,

2010, which reads as under:-

      “11.    Procedure for Getting Exemption under Section 3(2) (vii). -

      (1)     Any new Industrial undertaking desires to get exemption under
      clause (vii) of sub-section (2) of section 3 shall make an application to
      the Collector of Electricity Duty, Gandhinagar in Form ‘E' within ninety
      days from the date on which such industrial undertaking begins the
      manufacturing or production of goods for the first time.

      (2)     On receipt of an application made under sub-rule (1), the
      Collector of Electricity Duty, Gandhinagar may make such inquiries as
      he deems necessary and call for such further information as he may
      think fit and if he is satisfied that the applicant is entitled to get the
      exemption from payment of electricity duty, he shall grant the certificate
      of eligibility for exemption from payment of electricity duty in Form 'F'.

      (3)     Any new Industrial undertaking making an application after the
      expiry of the period specified in sub-rule (1) shall not be entitled for
      exemption from payment of electricity duty for the period lapsed
      between the date of the application and the date of manufacture or
      production of goods, and the total period of exemption shall be reduced
      to that extent:

      Provided that where the State Government, after making such inquiry
      as it thinks fit, is satisfied that the applicant could not make the
      application within the period specified in sub-rule (1) for the reasons
      beyond his control, it may condone the delay in making the application
      and in that event the total period of exemption shall not be reduced.”




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     C/SCA/10617/2025                                       JUDGMENT DATED: 19/01/2026




8.       In the present case, Mr. Nikunj Kanara, learned Assistant

Government              Pleader   has      placed      on    record       the     email

communication in respect of the application status of the

petitioner. The same reads thus:-

         “Sir,

         This is to clarify that the date i.e. 27/02/2024 12:00:00 AM, printed on
         the corner side of Form-E, is the date on which the applicant printed the
         application form. This Form-E is generated after all necessary
         documents and details were uploaded on the online portal.

         After printing Form-E, the authorized signatory manually signed the
         form. Thereafter, the duly signed Form-E was scanned and uploaded
         on the ED Exemption Portal. After the duly signed Form-E was
         uploaded, the final submit button was pressed, and thereafter the
         application was received at the department's end.

         We further inform you that the application was received at the
         department's end on 27/02/2024 at 00:06:24 AM”


9.       From the record of the respondent No.2 authority, it is

seen that the petitioner has printed the application Form on

27.02.2024 at 12:00 a.m. and thereafter, the same is shown to

have been uploaded by the petitioner on 27.02.2024 at 00.06

a.m. The proviso to Rule 11(3) states that where the Statement

Government after making such an inquiry if thinks fit and

satisfied that the applicant could not make the application

within the period specified for the reasons beyond his control, it


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   C/SCA/10617/2025                         JUDGMENT DATED: 19/01/2026




may condone the delay in making application and in that event,

total period of exemption shall not be reduced. As seen in the

present case, the petitioner has stated that the petitioner was

unable to print the Form and upload the same on the website of

the respondent No.2 authority due to technical error and hence,

there was a delay. The communication placed on record by the

learned Assistant Government Pleader reveals that the Form-E

was generated after all the necessary documents and details

were uploaded only on the online portal at 12:00 a.m. i.e. at the

very start of 27.02.2024 and at the end of 26.02.2024 which was

the last date for uploading the Form. That thereafter, the

petitioner’s authorized signatory manually signed the said Form

so printed and after scanning the said duly signed Form has

uploaded the same on the ED exemption portal which has been

received by the department at 00.06 a.m. i.e. after 6 minutes.

Therefore, in the present case, it can be seen that there is a

delay of only 6 minutes in uploding the Form-E by the petitioner

which may be attributed to the technical error, if any, on the

website as alleged by the petitioner.


10.    Further, as per the proviso to Rule 11 of the Rules, 2010,

the State Government has power to condone the delay in making



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  C/SCA/10617/2025                           JUDGMENT DATED: 19/01/2026




the application. In the present case, the delay in uploading the

Form-E by the petitioner is of 6 minutes only. The petitioner has

stated that due to some technical glitches on the website of the

respondent No.2 authority, the petitioner was prevented from

uploading the Form-E within time. In the considered opinion of

this Court, the petitioner can be given benefit of doubt in respect

of 6 minutes delay in uploading the Form-E. The fact shows that

the petitioner was in the process of uploading the Form before

12:00 a.m. and the process has been completed within 6

minutes after 12:00 a.m. which is technically new date i.e.

27.02.2024.


11.   This Court, therefore, holds that the delay of 6 minutes in

uploading the Form-E by the petitioner herein is liable to be

condoned and the petitioner is entitled to the benefit of

exemption from payment of electricity duty for the period

specified in the Provisional Certificate i.e. from 29.11.2023 to

28.11.2028.


12.   In view of the aforesaid observations, the present Special

Civil Application is allowed. The Delay of 6 minutes in uploading

the Form-E is condoned. The respondent No.2 authority shall

issue Final Certificate of Eligibility for Exemption from Payment


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     C/SCA/10617/2025                                                                   JUDGMENT DATED: 19/01/2026




of Electricity Duty for the period from 29.11.2023 to 28.11.2028

to the petitioner. The said Certificate shall be issued within 4

weeks from the date of receipt of this order. Rule is made

absolute to aforesaid extent. No order as to costs.

                                                                                             Sd/-
                                                                                 (ANIRUDDHA P. MAYEE, J.)
KAUSHIK D. CHAUHAN
Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: KAUSHIKKUMAR DINESHCHANDRA CHAUHAN(HC00197), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 19/01/2026 17:13:56




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