Ranjana P. Desai, J. - (1.) THE Petitioner is a Company incorporated under the Companies Act, 1956 and engaged in the business of construction and operation of pipelines for the transportation of natural gas. The Petitioner owns and operates a 1460 (one thousand four hundred and sixty) kilometer long "common carrier" pipeline by the name of the "East -West Pipeline" ("EWPL") which runs from Gadimoga in Andhra Pradesh to Bharuch in Gujarat. The said pipeline transports natural gas for the customers under the Gas Transportation Agreements entered into with the Petitioner.
(2.) THE Respondent is a statutory body constituted under the provisions of the Petroleum and Natural Gas Regulatory Board Act, 2006 ("PNGRB Act") to regulate "the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas so as to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets and for matters connected therewith or incidental thereto". Section 11(e)(ii) of the PNGRB Act empowers and mandates the Respondent to regulate, by regulations, inter alia, transportation rates for common carriers or contract carriers. Section 22 of the PNGRB Act, inter alia, empowers and mandates the Respondent to lay down by regulations, the transportation tariffs for common carriers or contract carriers, and the manner of determining such tariffs. The principle underlying determination of tariff is to ensure that the consumer interest is protected while the carrier/transporter gets back its cost as well as reasonable rate of return on such cost.
(3.) AS per the scheme of the PNGRB Act, the Respondent is mandated to, inter alia, determine the natural gas pipeline tariffs for common carriers and contract carriers. For this purpose, the Respondent framed the Petroleum and Natural Gas Regulatory Board (Determination of Natural Gas Pipeline Tariff) Regulations, 2008 ("Tariff Regulations"). The Tariff Regulations were notified by the Central Government on 20/11/2008. As per Regulation 3(1) of the Tariff Regulations, the same are applicable to the pipeline operated by the Petitioner. The tariff fixation is accordingly to be undertaken by the Respondent in accordance with Regulation 4 read with Schedule "A" of the Tariff Regulations.;