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2005 Supreme(AP) 316
Andhra Pradesh High Court
Judges : V.ESWARAIAH
GMR Technologies and Industries Limited - Appellant
Versus
Transmission corporation of A.P.Ltd - Respondent
Decided On : 04-01-05
Headnote:
Electricity (Supply) Act, 1948 - Sections 43 (A) (2) and 43 (A) (1) - Accrue financial losses - Export of alloy production - Consumers of the Transmission - Electricity grid - Ferro Alloys Limited situated District filed three writ petitions in WP No. WP no. and WP No. to declare the supplementary demands of Superintending Engineer, Operation, a. P. Transco -designated as Superintending Engineer - Industries Limited situated at District filed wp No. seeks a Writ of mandamus to declare the demand of the respondents by way of supplementary bills as illegal - GMR Technologies and Industries limited situated at District filed WP no. - Seeking a Writ of mandamus to declare letter of the senior Accounts Officer, Operation Circle making an additional demand as illegal and void - Petitioners are High Tension consumers of the Transmission Corporation of Andhra Pradesh Limited and manufacturers of various Ferro Alloys - They are power intensive units and power is one of main raw materials apart from chrome ore, quartz, coal etc - It is stated that Ferro Alloy industries in india were in difficult market situations and industry was forced to accrue financial losses resulting in closure of many units and during period exports were also badly affected - Therefore, Indian ferro Alloys Producers Association made a representation to Central Government for supply of regular and reliable power stations of National Thermal power Station an undertaking of ministry of Power to export oriented – Held, Generation of electricity including auxiliary consumption or on any other types of consumption transmission sale or on supply of power/energy and/or in respect of any of its installations associations associated with Generating sections and/or on Transmission system total amount of such taxes, duties payable by to the authorities concerned in any month on account of the said taxes, duties as referred to above shall be borne and additionally paid by the beneficiaries to NTPC and the same shall be charged in the monthly bills raised by NTPC on the beneficiaries in the proportion of energy drawn by them - Incidence of tax liability on NTPC as per Income Tax Act in force from time to time shall be recovered from beneficiaries duly certified by statutory auditors of NTPC - Allocation of the income tax liability to respective power stations will be in proportion to capacity of NTPC in operation at beginning of respective financial year - Income tax allocated to the beneficiaries will be in proportion of their energy drawls during the year to which the income tax pertains - Pertinent to note that government of India from time to time enhanced fixed charges by different notifications - Perusal of the notification issued by Government of India in exercise of its powers vested under Section 43 (A) (2) of Act in partial modification of terms and conditions of the earlier notification – Ordered Accordingly
( 1 )
( 2 ) ANDHRA Ferro Alloys Limited situated at Vizianagaram District filed three writ petitions in WP No. 6147 of 2000, WP no. 11192 of 2000 and WP No. 2331 of 2001 to declare the supplementary demands of the Superintending Engineer, Operation, a. P. Transco, Vizianagaram, re-designated as the Superintending Engineer, Operation, eastern Power Distribution Company of a. P. Limited, Vizianagaram and the senior Accounts Officer of the said operation circle.
( 3 ) GMR Vasavi Industries Limited situated at Tekkali, Srikakulam District filed wp No. 5713 of 2000 seeks a Writ of mandamus to declare the demand of the respondents by way of supplementary bills as illegal, arbitrary and unlawful.
( 4 ) GMR Technologies and Industries limited situated at Ravivalasa Village, tekkali, Srikakulam District filed WP no. 6287 of 2001 seeking a Writ of mandamus to declare the letter of the senior Accounts Officer, Operation Circle, epdc of AP Limited, making an additional demand as illegal and void.
( 5 ) JINDAL Strips Limited (Ferro Alloys division) situated at Visakhapatnam, filed three writ petitions in WP No. 5955 of 2000, wp No. 10201 of 2000 and WP No. 22157 of 2000 to declare additional demands made by the Superintending Engineer, operation Circle, Vizianagaram as illegal and unlawful.
( 6 ) PETITIONERS are High Tension consumers of the Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) and manufacturers of various Ferro Alloys. They are power intensive units and power is one of the main raw materials apart from chrome ore, quartz, coal etc. It is stated that the Ferro Alloy industries in india were in difficult market situations and the industry was forced to accrue financial losses resulting in closure of many units and during the said period the exports were also badly affected. Therefore, the Indian ferro Alloys Producers Association made a representation to the Central Government for supply of regular and reliable power, from the power stations of National Thermal power Station (NTPC) an undertaking of ministry of Power, Union of India, to export oriented Ferro Alloy units in order to boost their production for export purposes and compete in the international market. The ministry of Power, Government of India considered the requests of the Ferro Alloy units as well as that of the State Government of Andhra Pradesh. Accordingly, the Ministry of Power, Government of India addressed a letter dated 21. 3. 1995 to the Central electricity Authority deciding to allocate certain units of power out of 15% unallocated share of Central Government.
( 7 ) IT is also pertinent to note that the then Chief Minister of Andhra Pradesh vide his letter dated 9. 4. 1994 requested the ministry of Power, Government of India, to supply power directly from NTPC Stations through State electricity grid on collection of the wheeling charges to such Ferro Alloy units earmarked for 100% export of alloy production. In response to the said letter, the Ministry of Power addressed a letter dated 30. 4. 1994 to the then Chief Minister, to supply power from Central sector stations to the 100% export oriented Ferro Alloy units during the off peak hours on certain terms and conditions. Accordingly, certain mw of power was allocated to six export oriented Ferro Alloy units in the State out of 15% unallocated share of the Central government in southern region between july, 1994 to October, 1995 and continued upto 2000.
( 8 ) GMR Vasavi Industries Limited was allocated 7 MW of power, Jindal Strips limited was allocated 7 MW of power, andhra Ferro Alloys Limited was allocated 4 MW of power, Ferro Alloys Corporation limited was allocated 16 MW of power, vbc Ferro Alloys Limited was allocated 15 MW of power and Nava Bharat Ferro alloys Limited was allocated 20 MW of power respectively. All these units were the consumers of the APTRANSCO and they continued to be the consumers of the said corporation.
( 9 ) SRI L. Nageswara Rao, Senior advocate ap
