BIHAR STATE ELECTRICITY BOARD & ORS. Vs. M/S. BHOLA RAM STEEL PVT. LTD. & ORS.
LAWS(SC)-2016-1-69
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on January 28,2016

Bihar State Electricity Board And Ors. Appellant
VERSUS
M/S. Bhola Ram Steel Pvt. Ltd. And Ors. Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) The appeal has been preferred aggrieved by the judgment and order passed by the High Court of Judicature at Patna in the writ petition and the appeal, thereby quashing the demand raised by the appellant for the year 1999-2000. M/s. Bhola Ram Steel Pvt. Ltd. filed a writ application that it was an industrial unit to manufacture iron and steel structure and section like bar roll, place angle, channel, square, tor and round, general fabrication and annulling of sheets it applied as HTIS consumer for a connected load of 500 KVA. The competent authority sanctioned a load of 500 KVA vide letter dated 24.2.1998. The respondent-industry commenced production w.e.f. 28.3.1998. The appellant averred that on 23.1.1999 the premises of the respondent were inspected. Connected load was found to be 495 HP. Appellant submitted that as per the Industrial Policy of 1995 announced by the State Government, Resolution dated 3.9.1996 was passed by the Energy Department of the State Government to grant exemption from payment of minimum guarantee charges to the industrial unit having connected load of 500 KVA and accordingly in exercise of power under section 78 of the Electricity Supply Act, 1948 issued directives to the Electricity Board for grant of such incentives. The industrial units commencing production between 1.4.1993 and 31.8.2000 were to be exempted from payment of minimum guarantee charges for a period of 5 years from the date of commencement of production.
(3.) The maximum demand indicator in the Trivector meter had wrongly shown more than the contracted demand of 500 KVA. The industry also submitted that the meter stopped functioning in the month of January, 2000. It was replaced on 9.2.2000, again the meter was found to be faulty and again replaced on 21.3.2000. Thus the readings of the meter could not be relied upon.;


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