TATA YODOGAWA LIMITED Vs. BIHAR STATE ELECTRICITY BOARD

JUDGEMENT

(1.) Though the petitioner had initially challenged the vires of the tariff for consumers of Induction Furnaces contained in the Board's internal communication dated 24th September 1999 (Annexure-5) and the retrospective application of the said tariff with effect from 01st September 1999, but during the course of the proceedings, the petitioner had abandoned such a prayer which was also recorded in the order dated 14th September 1999 passed in the instant writ application. The petitioner has since then confined its prayer in the writ application to the challenge to the applicability of such tariff to the Induction Furnace of the petitioner. Therefore, the sole question which needs to be decided in the present writ application is, whether the tariff schedule communicated by the Bihar State Electricity Board (in short 'BSEB') vide annexure-5 dated 24th September 1999 and the Gazette Notification dated 15th March 2000 (Annexure-C to the counter affidavit) is applicable to the petitioner or not? The answer to such question will determine whether the petitioner is liable to pay the impugned Bills raised pursuant to annexure-13 dated 16th March 2000 for the sum of Rs. 32,13,848/-. In order to challenge the applicability of the said tariff notification to the petitioner's Unit, learned Senior Counsel for the petitioner has made the following submissions:

(2.) According to the petitioner, it is having a Roll manufacturing Unit at Gamharia, Adityapur, Jamshedpur. Its primary activity is manufacturing of Rolls which is a tailor made product and the Induction Furnaces are used merely in conjunction with other types of Furnaces for manufacture of said Rolls. Besides the melting set up the Foundry consists of Heat Treatment Furnaces, Mould Drying Ovens, Roll Casting facilities. The Machine Shop comprises of several Heavy Duty Machine Tools like Lathes, grinding machines & milling machines. For the purposes of running the said Unit, the petitioner entered into an agreement dated 01st of April 1979 with the respondent BSEB for supply of electricity for 10,500 KVA i.e. equivalent to 10.5 MVA under tariff H.T.S-II having consumer no. HJAP/25 which is contained at annexure-1 to the writ application. As per the agreement entered into between the petitioner and the BSEB, the purpose of seeking supply of energy was for manufacture of cast rolls and ingots. It is not in dispute that since the date of agreement, petitioner's Unit categorized as HTS-II category of consumer, has been continuously drawing energy from the erstwhile BSEB under the tariff notification issued from time to time and lastly, 1993 tariff of the Board dated 23rd June 1993. The present cause of action however arose on account of tariff schedule notified by the erstwhile BSEB on 15th March 2000 which was made specifically applicable to the Induction Furnaces of the consumers of the Board. According to the learned Senior Counsel for the petitioners, the said tariff notification was made retrospectively applicable from 01st September 1999.

(3.) The Background of introduction of such a tariff schedule for a special category of consumers having Induction Furnaces was on account of deliberations between the respondent Board and the Steel Manufacturers Association. Learned Senior Counsel for the petitioners submits by reference to annexure-5 dated 24th September 1999 that the Secretary, BSEB by the said letter communicated to all its concerned General Managers-cum-Chief Engineers of different areas Electricity Board and other functionaries, the introduction of new tariff schedule for HT consumers having Induction Furnaces. It is submitted that on perusal of the said letter, it would appear that it has been issued on the basis of consensus arrived at between the Board and the Bihar Steel Manufacturers' Association regarding tariff for consumers having Induction Furnaces to be levied with effect from 01st of September 1999, as per the details given thereunder. Learned counsel for the petitioners has relied upon the relevant portion of the said letter relating to the applicability of the said tariff as also the character of service to be provided thereunder to consumers having Induction Furnaces which is quoted herein-below: