Ms Narayani Fuels Private Limited through Its Director Shri Satyabrat Sahay v. State of Jharkhand through the Secretary Finance Department

Jharkhand HC5 Jan 2026WPC/120/2022

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HIGH COURT OF JHARKHAND AT RANCHI W.P.(T)…

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Ms Narayani Fuels Private Limited through Its Director Shri Satyabrat Sahay Vs State of Jharkhand through the Secretary Finance Department — Jharkhand HC (2026) — LawSathi Research

¶493

concerned in the present case with the field of taxation, let us look at the nature of guidance necessary in this field. The guidance may take the form of providing maximum rates of tax upto which a local body may be given the discretion to make its choice, or it may take the form of providing for consultation with the people of the local area and then fixing the rates after such consultation. It may also take the form of subjecting the rate to be fixed by the local body to the approval of the Government which acts as a watch-dog on the actions of the local body in this matter on behalf of the legislature. There may be other ways in which guidance may be provided. But the purpose of guidance, whatsoever may be the manner thereof, is to see that the local body fixes a reasonable rate of taxation for the local area concerned. So long as the legislature has made provision to achieve that reasonable rates of taxation are fixed by local bodies, whatever may be the method employed for this purpose — provided it is effective — it may be said that there is guidance for the purpose of fixation of rates of taxation. The reasonableness of rates may be ensured by fixing a maximum beyond which the local bodies may not go. It may be ensured by providing safeguards laying down the procedure for consulting the wishes of the local inhabitants. It may consist in the supervision by Government of the rate of taxation by local bodies. So long as the law has provided a method by which the local body can be controlled and there is provision to see that reasonable rates are fixed, it can be said that there is guidance in the matter of fixing rates for local taxation. As we have already said there is pre-eminently a case for delegating the fixation of rates of tax to the local body and so long as the legislature has provided a method for seeing that rates fixed are reasonable, be it in one form or another, it may be said that there is guidance for fixing rates of taxation and the power assigned to the local body for fixing the rates is not uncontrolled and uncanalised. It is on the basis of these principles that we have to consider the Act with which we are concerned.”

¶514

Sl. No.	Tariff Category	Slabs	Rate in percentum of net charges for energy consumed or sold
1	Domestic/Non-Domestic LT/		6%
	Domestic HT/Temporary Supply/Advertisement/Religious places/Prayer Establishments/ Any Category of consumption not falling under any categories
2	Industrial HT/Mining/Any type of HT connection excluding	Upto 10 MVA	8%
	Domestic HT/Commercial HT	Above 10 MVA	15%
3.	Irrigation & Agriculture		Exempted

¶612

Sl. No.	Tariff Category	Gross units of energy consumed or sold
1.	Captive consumption by mining, commercial and industrial units, that have installed generating sets.	Exempted
2.	Captive consumption by all industrial units that have installed power station	50 paise per unit of energy consumed
3.	Captive consumption by all mining units that have installed power station	50 paise per unit of energy consumed

Ms Narayani Fuels Private Limited through Its Director Shri Satyabrat Sahay v. State of Jharkhand through the Secretary Finance Department

Case brief

What is this about?

A compact analysis

Ms Narayani Fuels Private Limited through Its Director Shri Satyabrat Sahay v. State of Jharkhand through the Secretary Finance Department

Case brief

What is this about?

A compact analysis

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