JAIPUR POLYSPIN LIMITED Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS writ petition, under Article 226 of the Constitution, has been filed by the petitioner challenging the notification of the Rajasthan State Electricity Board (in short 'the Board') dated 11-4-1988 issued in exercise of the powers conferred on it by Section-49 of the Electricity (Supply) Act, 1948 (hereinafter to be referred as 'the Supply Act') whereby the provisional rate of fuel surcharge was fixed on eight paisa per unit from the billing month of May, 1988 chargeable from medium and large scale industrial consumers. It had been prayed by the petitioner that by an appropriate writ, order or direction it may be declared that no fuel surcharge is leviable from May, 1988 or in the alternative, the rate of fuel surcharge not liable to exceed four paisa per unit. Consequently, the prayer for quashing the aforesaid notification dated 11-4-1988 fixing the provisional rate of fuel surcharge was made.

(2.) THE Rajasthan State Electricity Board created under the Supply Act enjoined with the duty of supply of electricity to all the consumers through out the State of Rajasthan and for that pupose it obtained power from the THErmal Power Houses in Rajasthan where actually the coal and oil were used as the main raw material. It also generated power from Hydel sources at Chambal in Rajasthan and got power from Bhakra and Byas Power Stations and Satpura THErmal Station in Madhya Pradesh. THE Board also purchased the power from the Rajasthan Atomic Power Project and from several other power stations in the neighbourhood. THE Atomic Power Project was owned and controlled by the Central Government and uranium and heavy water were the principal fuel which were used for producing energy at the Atomic Power Station. THE power from Atomic Power Project was most uncertain and it goes out of order at any time and takes a long time to re-start. Since there was large gap between the demand and availability of electric power in the State of Rajasthan, the Board had to purchase electricity from other out-side sources. In order to tide over the difficulty of shortage of power in Rajasthan, the Board undertaken construction of two THErmal Power Stations at Kota in first stage, each of 110 MW KWH. One of which 110 MW was commissioned in January, 1983 whereas the second unit of 110 MW was commissioned in July, 1983.

(3.) THE Board experienced that the informations required from different agencies took sufficient time in collecting all the relevant informations in respect of the elements as required in the formula for fuel adjustment clause for working out the final rate of fuel surcharge, and till such time, the previous final rates worked out was to be charged for the subsequent current years as provisional rate. As a result of non-availability of complete formula, the Board remained deprived of its legitimate revenues for a long time although the amount on fuel escalations have been incurred by the Board, but could not be charged from its consumers due to the reasons mentioned above. To over-come this difficulty, the Board decided in 1981 to revise the procedure of charging provisional rate of fuel surcharge for the current period by making suitable amendments in the tariffs. As such, after processing the matter and carrying out all the formalities, the Board revised the tariff vide notification dated 7-7-1981 which is known as 'tariff for supply of Electricity, 1981'. So far as the charging of the provisional rate for the current period was concerned, it was revised as under : - "the consumer shall be charged for the current period at the provisional rate, as may be decided by the Board from time to time, for which the decision of the Board shall be final, and binding on the consumer. Final adjustment shall be made when the final rate of fuel surcharge is worked out, for that period on the basis of formula mentioned above. "