ACC LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner has sought for a writ of mandamus to declare that the 1st respondent has no authority to raise a fiscal demand i.e., electricity tax on ad valorem basis at 6% on the wheeled consumption procured from the respondent No.4 under the "Open Access" system.

(2.) The petitioner is a Limited Company incorporated under the Companies Act, 1956, having its registered office at Mumbai. The petitioner is carrying on the business of manufacturing of cement and ready mixed concrete with a countrywide network of factories and sales offices. The petitioner is having its Cement Grinding Works at Thondebhavi, Gauribidanur, Chikkaballapur in Karnataka.

(3.) It is contended that the petitioner is a consumer of the 3rd respondent company having its R.R.No.GRHT16 with the Electricity Tariff under HT(a)(ii) i.e., High Tension and Extra High Tension. The Extra High Tension Lines are operated and maintained by the Karnataka Power Transmission Corporation Limited (KPTCL) a transmission licensee and State Transmission Utility (STU) in the State of Karnataka. The petitioner is also an Inter State Open Access Consumer sourcing electricity under the Inter State Open Access as per the provisions of the Electricity Act, 2003 and the CERC Regulations framed thereunder. In order to source power for a short term open access, the petitioner is permitted to use the transmission lines or associated facilities for such lines on inter-state transmission system to which an application with a nodal agency, Karnataka State Load Dispatch Centre has to be made in accordance with the regulations. Subsequent to the amendment to Section 3 (1) and (2) of the Karnataka Electricity (Taxation on Consumption) Act, 1959 by Act No.31 of 2013 the demand has been raised by the respondent No.3 levying electricity tax on ad valorem basis at 6% for open access from April 2013 on the inter state transmission system. Being aggrieved the petitioner is before this court.