Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | i JJ and ll 2 - Levy of surcharge on defaulting industries 62 63. 64 86 Electricity Act. 2003: ss. 2(4). 6i |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Electricity Act. 2003: ss. 2(4). 6i, 62, 63. 64, 86, i JJ and ll 2 - Levy of surcharge on defaulting industries - Legality of- Appellant-companies. arc furnace units, established prior to June 1995, drew power from IIKV High Tension Supply Line - Circular of State Electricity Board mandating all existing as well as prospective consumers. who had installed induction furnace units with a load above 1500 KVA. to shift to 66 KV from 11 KV voltage supply, failing which they were required to pay surcharge@ 17.5% - However; another circular dated 81 h June, i999 issued by Electricity Board exempting all units existing as on 23th June, i995 from the necessity of conversion to 66KV as well as levy of i7.5% surcharge - Electricity bills by State E F Power Corporation imposing surcharge on arc furnaces units established prior to June, 1995 - Writ petitions by appellants. dismissed - LPAs by appellants - While the LPAs were pending, tariff order issued by Regulatory Commission specifically levying surcharge 011 induction Furnace Units - Tariff order challenged before Appellate Tribunal for Electricity (APT EL) - Levy of surcharge held to be justified by APT EL by order dated 16.07.2010 - APTEL 5ยท order challenged before Supreme Court, which was dismissed vide order dated 14'h February 20JJ, thus confirming the levy of surcharge - LPAs dismissed by High Court - On appeal, held: insofar as the order of High Court dismissing the LPAs filed by appellants is concerned, the levy of surcharge has been upheld by G Supreme Court by its order dated 14th February 2011 - Thus, the issue with regard to legality and justification for levy of surcharge stands foreclosed - Further, the absence of continuation of exemption granted vide circular dated 8th June, 1999 in respect of pr 1995 industries, in any of the tariff orders for subsequent years i.e. after coming into force of the Electricity Act is a conscious decision of Regulatory Commission with regard to the necessity and A justifiability of the levy of surcharge on defaulting industries - The said reason for levy of surcharge to disincentivize the defaulting units being justifiable, cannot be faulted with - No room for any other view in the matter - High Court was fully justified in dismissing the writ petitions - Electricity Laws. Surcharge levied on defaulting industries who did not shift from 11 KV to 66KV voltage supply as mandated by circular issued by State Electricity Board - Correctness of quantum/rate of said surcharge levied -APTEL vide its order dated 16.07.2010 held the levy of surcharge to be justified, but disagreed with the rate of surcharge and remanded the matter back to Regulatory Commission for deciding the rate of surcharge afresh - Regulatory Commission on remand, reduced the rate of surcharge from 17.5% to 10% - Held: The Regulatory Commission worked out the appropriate rate of surcharge by adding a penal element to the cost of conversion to disincentive the consumers from continuing to receive supply on the 11 KV transmission lines - This being the basis for determination of the rate and that too by the expert body which has been further upheld by APTEL, no fault can be found with the said exercise. ss.61 to 64 - Determination of tariff - Nature of power exercised - Held: The said power has been consistently held and E understood to be statutory, required to be exercised within the four corners of the relevant provisions of the 2003 Act. Words and Phrases - 'Surcharge' - Meaning of - Explained |
Judge | Honble Mr. Justice Ranjan Gogoi |
Neutral Citation | 2017 INSC 485 |
Petitioner | Waryam Steel Castings Pvt. Ltd. |
Respondent | Punjab State Power Corporation Ltd. And Anr. |
SCR | [2017] 8 S.C.R. 134 |
Judgement Date | 2017-06-19 |
Case Number | 7856 |
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