NATHU GANGADHAR RAMBHAD Vs. MAHARASHTRA STATE ELECTRICITY DISTRIBUTION CO.LTD
LAWS(ET)-2014-12-8
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on December 11,2014

Nathu Gangadhar Rambhad Appellant
VERSUS
Maharashtra State Electricity Distribution Co.Ltd Respondents

JUDGEMENT

- (1.) Shri. Nathu Gangadhar Rambhad has filed a Petition on 16 June, 2014 citing Section 86(1)(i) of the Electricity Act (EA), 2003 for refund by the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) of the amount collected by it due to wrongful application of Commercial tariff to his transformer repairing industry.
(2.) The Petitioner's prayers are as follows: " ... The Respondents be directed to repay the entire amount of Rs. 91,130.00, plus excess payments recovered by way of difference in Commercial tariff and industrial tariff along with taxes and interest on the amount as per 'Micro, Small and Medium Enterprises Development Act. 2006'."
(3.) The Petition states that: 3.1 The Petitioner has a transformer repair workshop, registered in February, 2005 as a Small Scale Industry (SSI), in the name of his proprietary concern 'M/s N. G. Rambhad', at C -119, MIDC Kondi, Tal. And Dist. Solapur. In 2011, the workshop was given on a rental basis to M/s V. K. Industries, undertaking the same activity. 3.2 Since the transformer repair unit's inception in 2005, MSEDCL was levying the LT (Low Tension) V ­ Industry tariff. In May, 2012, MSEDCL's Flying Squad inspected the unit. Based on its assessment of the activity as commercial, MSEDCL issued a supplementary Bill on 28 May, 2012 for Rs 91,130/ -, being the difference between the LT II ­ Commercial tariff and the LT Industrial tariff charged so far, for the period from May, 2010 to April, 2012. The amount was recovered by adjustment of electricity bills, as a result of which M/s V. K. Industries stopped paying rent to the Petitioner. The Petitioner protested to MSEDCL through a notice, and filed an application dated 20 June, 2012 with the Internal Grievance Redressal Cell (IGRC), Solapur under the MERC (Consumer Grievance Redressal Forum (CGRF) and Electricity Ombudsman) Regulations, 2006 . However, the IGRC is yet to hear the grievance. 3.3 Flying Squad raids were also conducted in the Nagpur Zone. However, the Electricity Ombudsman, Nagpur held in favour of the transformer repair units (being entitled to LT Industrial and not Commercial tariff) in similar cases. The Ombudsman's Order was upheld by the Bombay High Court (Nagpur Bench) on 22 April, 2013 in WP Nos. 304 to 307 and 310 of 2013. On 12 September, 2013, the Petitioner sent a copy of the High Court Order to MSEDCL and asked for refund with interest accordingly, but received no response. The High Court Order is annexed to the Petition, and reads as follows: "...The Electricity Ombudsman was justified in allowing the representation filed by the respondents. The respondents were placed in the 'Industrial Consumers' category since the beginning. The categorization of the respondents was changed to that of 'Commercial Consumers' solely on the ground that the respondents were repairing the transformers and that was not an activity which could fall in the 'Industrial Consumer' category. On an appreciation of the material on record, the Electricity Ombudsman rightly held that the transformers repairing workshops would be classified in the 'Industrial Consumers' category for tariff purpose. The order of the Electricity Ombudsman can be justified on the basis of the order passed by the Maharashtra Electricity Regulatory Commission on 16.08.2012 whereby it is made clear that the tariff applicable to the transformer repairing workshops would be 'Industrial' tariff and not 'Commercial' tariff. The submission made on behalf of the petitioner [MSEDCL] that the order dated 16.08.2012 cannot come to rescue of the respondents for effectively challenging their categorization in the 'Commercial Consumers' category as the order dated 16.08.2012 is not a clarificatory order and the said order makes the 'Industrial' tariff applicable to the transformer repairing workshop only after 2012 is not well founded and is liable to be rejected. Though the order dated 16.08.2012 may not be clarificatory order, the order shows that on a proper appreciation of the submissions, the Maharashtra Electricity Regulatory Commission observed that 'Industrial' tariff would be applicable to the transformer repairing workshops.... Merely because it was stated in the inspection report that the supply of electricity was used for repairing the transformers and not for any manufacturing, it cannot be said that the change of categorization of the respondents from 'Industrial' to 'Commercial was just and proper. Since there is no merit in the petitions, the same are dismissed...." ;


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