LAWS(GJH)-2007-1-22

ESSAR STEEL LTD Vs. EXECUTIVE ENGINEER

Decided On January 15, 2007
ESSAR STEEL LTD. Appellant
V/S
EXECUTIVE ENGINEER Respondents

JUDGEMENT

(1.) Rule. Learned counsel Ms.Lilu K. Bhaya waives service of notice of Rule on behalf of the respondents. This petition has been preferred challenging the legality of demand of wheeling charges (as defined under Section 2(72) read with Section 62 of the Electricity Act,2 003) raised by the respondents vide demand notice dated 18th January, 2006 as well as 5th June, 2006 and bills for the month of May,2005 to May,2006. Wheeling charges are demanded for the reason that petitioner is using distribution system of respondent for conveyance of electricity. Electricity is transmitted from Captive Power Plant (hereinafter referred to as "CPP") of petitioner to the factory premises of petitioner through Bus Bars. Respondent issued impugned notices and bill for payment of Wheeling Charges, as Bus Bars are part and parcel of the distribution system and associated facilities of 'transmission licensee' or 'distribution licensee' (i.e. respondent No.2) Transmission line of 220 KV from Icchapur substation to Sachin sub-station is as under: <IMG>JUDGEMENT_293_GHJ15_2007Image1.jpg</IMG>

(2.) The matter in issue before this Court is the ownership of "220 KV Bus Bar" between points 'X' and 'Y' in the map at page 151 (Annexure-III to the Affidavit-in Rejoinder filed by the petitioner), which is of a length of about 400 meters and is connected to the 220 KV transmission line leading to Icchapur sub-station of respondent No. 2 (hereinafter referred to as "GETCO") on the one side and Sachin Sub-station also of GETCO on the other side.

(3.) Learned Senior Counsel Mr. K.S.Nanavati for the petitioners submitted that the Bus Bar of 400 meters between points 'X' and 'Y' (as per map at page-151-Annexure III of the Affidavit-in Rejoinder filed by the petitioner) is owned, operated and maintained by the petitioners The Bus Bar is part of the distribution system of the petitioners. The petitioners have incurred expenditure of a sum of Rs.54 Crores for laying down the Bus Bars and it is also submitted that the Bus Bar is independent, separate and severable from 220 KV line leading to Icchapur Sub-station on one side and Sachin sub-station on the other side.