IN THE APPELLATE TRIBUNAL FOR ELECTRICITY (Appellate Jurisdiction)

APPEAL No. 245 of 2023 Dated : 7^th February, 2025 Present: Hon’ble Mr. Sandesh Kumar Sharma, Technical Member Hon’ble Mr. Virender Bhat, Judicial Member In the matter of:

Hubli Electricity Supply Company Limited Corporate Office, Navanagar, PB Road, Huballi Karnataka – 580025 Advocate for the Petitioner: Shahbaaz Hussain shahbaaz@precinctlegal.com … Appellant Versus

1. Adyah Solar Energy Private Limited

138, Ansal Chambers-II, Bhikaji Cama Place, New Delhi – 110066 Presented by its Director sarin@ayanapower.com

2. Karnataka Electricity Regulatory Commission No. 16, C-1, Millers Tank Bed Area, Vasanth Nagar, Bengaluru – 560052, Karnataka Represented by its Secretary asst.secykerc@gmail.com … Respondent (s)

Counsel on record for the : Shahbaaz Husain Appellant(s) Stephania Pinto Fahad Khan V.M. Kannan K Sumanth Gowda Dalima Gupta for App. 1 Counsel on record for the : Sujit Ghosh Ld. Sr. Adv.

Respondent(s) Mannat Waraich Mridul Gupta Ananya Goswami for Res. 1

J U D G M E N T

PER HON’BLE MR. VIRENDER BHAT, JUDICIAL MEMBER

1. The Order dated 15^th June, 2021 passed by Karnataka Electricity Regulatory Commission (“hereinafter referred to as “the Commission”) has been assailed in this appeal by the Appellant. 2. The Appellant, Hubli Electricity Supply Company Limited (in short “HESCOM”) is a Distribution Licensee in the State of Karnataka and is a Govt. of Karnataka Undertaking.

3. The 1^st Respondent Adyah Solar Energy Pvt. Ltd. is a generating company and has set up 50 MW capacity solar power plant in Block B-13 of the Pavagada Solar Park located in the State of Karnataka. The power generated by the power plant is procured by the Appellant in accordance with terms of the Power Purchase Agreement (in short “PPA”) dated 28^th April, 2018 executed between the parties.

4. The Karnataka Renewable Energy Department (in short “KREDL”) has issued a request for proposal (RFP) inviting bids for development of grid connected ground mounted solar photovoltaic project of 1200 MW capacity within 2000 MW (AC) Pavagada Solar Park. A competitive bidding process was conducted by KREDL and, thereafter, letter of Award (LOA) was issued in favour of 1^st Respondent. A PPA dated 20^th April, 2018 was also executed between the Appellant and the 1^st Respondent for procurement of power generated by the Solar power plant of 1^st Respondent.

5. It appears on 30^th July, 2018, the Department of Revenue, Ministry of Finance introduced Safeguard Duty (in short “SGD”) and Integrated Goods and Services Tax (in short “IGST”) on the import of solar modules. Accordingly, the 1^st Respondent filed Petition No. 08 of 2019 before the 2^nd Respondent – Commission with the prayer to declare the imposition of SGD and IGST as Change in Law event and for determination of increase in tariff due to imposition of SGD. The 1^st Respondent claimed Rs.31,75,76,295/-

as SGD towards import of solar modules.

6. On the basis of pleadings of the parties as well as the rival contentions raised on their behalf, the Commission framed following six issues for its consideration:-

“Issue No.1: Whether it would be necessary for this Commission not to proceed with the present petition till the disposal of the SLP No.24009-24010/2018 pending before the Hon’ble Supreme Court of India?

Issue No.2: Whether the petitioner prove that the imposition of Safeguard Duty vide Notification No.01/2018-(Custom-(SG) dated 30.07.2018 issued by the Ministry of Finance, Government of India, on import of Solar Modules amounts to ‘Change in Law’ as per Article 15 of the PPA?

Issue No.3: Whether the petitioner is entitled to interest/carrying cost from the date of incurring expenses to the date of actual payment on additional expenditure incurred by it as claimed in the petition?

Issue No.4: Whether the respondent prove that the petitioner has imported excess Solar Modules and SGD claim is excessive?

Issue No.5: Whether the petitioner is entitled for appropriate and propor