LAWS(MAD)-2013-8-296

MADURA COATS LTD Vs. TAMIL NADU ELECTRICITY BOARD

Decided On August 13, 2013
MADURA COATS LTD Appellant
V/S
TAMIL NADU ELECTRICITY BOARD Respondents

JUDGEMENT

(1.) The writ petitioner filed an affidavit and revealed the facts of the case as follows:-

(2.) For the Export Oriented Unit (EOU), at Ambasamudram, the petitioner Company has signed an agreement dated 29.10.1994 with the respondent for drawing a maximum demand of 2300 KVA under connection HT SC 90. The petitioner was extended concession tariff for this connection in terms of GO No.35, Energy (A-2), dated 01.03.1994 under which new high tension industries set up after 03.05.1989, in areas other than the Madras Metropolitan Areas were entitled to concessional tariff for the first three years.

(3.) The Tamil Nadu Government by G.O.Ms.No.2341-PWD, dated 29.11.1982 introduced certain amendments with effect from 01.12.1982 to the Schedule to the Tamil Nadu Revision of Tariff Rates on Supply of Electrical Energy Act, 1978. As per the amendment, in all cases of High Tension Supply under High Tension Tariff-I, the connected load under 'lighting and non-industrial purposes' is restricted to 5% of the approved demand, where approved demand is more than 5000 KVA. If the load is within the prescribed limit, the consumption in the service is to be charged at High Tension Tariff-I. Any excess load above the prescribed limit is to be charged under High Tension Tariff-VII. The consumer is required to utilize the energy for 'lighting and non-industrial purposes' for the bona-fide purpose of the factory and its industrial activities. The Chief Engineer is designated the final authority for deciding the bona-fide nature of these purposes. As the approved demand for the petitioner's connection under HT SC 2 was 9000 KVA, the prescribed limit for "lighting and non-industrial purposes' cannot exceed 450 KVA or 436.5 KW calculated at a power factor of 0.97. It is thus clear that only the excess load upto the prescribed limit would be charged under High Tension Tariff VII and the Chief Engineer alone is the final authority for deciding the bona-fide use under the said purpose.