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11. In G.O.Ms.No.852, the reason assigned is that the Chemical Industries have stated that they are generating power for their captive consumption using various items like orthoxylene and that these sophisticated heat recovery and power generation system were installed at considerable cost. This was the basis for their request for exemption and the Government acceded to the said request. Similar Notification was also issued in G.O.Ms.No.1246 dated 1.8.1988 exempting Sugar Industries irrespective of the fuel they used for generating electricity.

20. One other relevant factor which has to be considered is that the same Cement Industries' have been granted exemption when they have utilised diesel or LSHS for the purpose of generating energy for the captive consumption. In such circumstances, the question that loom large is as to why the Government has denied exemption for the very same Industry namely the Cement Industry when they have used furnace oil as their raw material for generating electricity.

21. The Hon'ble Supreme Court in the decision in S.N. Mukherjee V. Union of India (AIR 1990 SC 1984) held that "even administrative order which has civil consequences must give reasons". In paragraph 35 of the aforesaid decision, the Suprement Court observed that 'recording of reasons by an administrative authority serves a salutary purpose, namely, it excludes chances of arbitrariness and ensures a degree of fairness in the process of decision making. It is not necessary that the reasons should be as elaborate as in the decision of a court of law. The extent and nature of the reasons would depend on particular facts and circumstances. However, what is necessary is that the reason should be clear and explicit so as to indicate that the authority has given due consideration to the points in controversy.'

24. In any event, we are not inclined to go into the controversy as to whether the appellant Industry is entitled for exemption while using furnace oil for generating electricity for captive consumption or not. It is essentially a question of fact to be decided by the competent authority by taking into consideration the relevant factors and materials. We are satisfied that the impugned orders have been passed in a mechanical manner without assigning any reason whatsoever. On this ground alone, we propose to interfere with the orders impugned in the Writ Petition and accordingly set aside the same.

25. However, the matter is remanded for fresh consideration to the respondents to decide as regards the appellant's eligibility for the purpose of generating power using furnace oil for their captive consumption. It is brought to the notice of this Court by the learned Senior counsel for the appellant that the issue relating to exemption is only for a specified period and the present position is different. Further, pursuant to the interim orders granted, the appellant has effected the deposit of 50% of the amount, and the same shall remain in deposit during the period when the matter is taken up for re-consideration as directed above. While deciding the appellant's request for exemption, the respondents shall consider :-