STATE OF U.P. AND ORS. vs RENUSAGAR POWER co. AND OTHERS

The Supreme Court held that Renusagar Power Co. Ltd. is not an 'own' source of generation of electricity for Hindalco under Section 3(1)(c) of the U.P. Electricity Duty Act, 1952, and thus, Hindalco is liable to pay electricity duty. The Court found that the corporate veil should not be lifted as Renusagar was a wholly owned subsidiary of Hindalco, established to circumvent regulatory complications. The High Court's decision to quash the State Government's order and notice of demand was upheld, directing the State to reconsider the exemption request in line with prior directions.