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2010 Supreme(Online)(KER) 23140
HIGH COURT OF KERALA
P.R.RAMACHANDRA MENON, J
BELL FOODS MARINE DIVISION – Appellant
Versus
KERALA STATE ELECTRICITY BOARD – Respondent
WP(C)/36750/2009
SRI.BLAZE K.JOSE, SRI.P.P.THAJUDEEN, SC, K.S.E.B, SRI.C.K.KARUNAKARAN, SC, KSEB
The court upheld the regulatory commission's tariff categorization, distinguishing between commercial cold storage and industrial processing, confirming the applicability of LT VIIA for separate cold storage connections.
Headnote:
Tariff - Electricity Supply - LT VIIA, LT IVA - The court interpreted the tariff categorization of electricity connections, affirming the distinction between commercial cold storage and industrial processing units, ultimately ruling that the connection in question was appropriately classified under the LT VIIA tariff.
Fact of the Case:
The petitioner operates a seafood processing and cold storage unit. They challenged the classification of their cold storage connection under LT VIIA commercial tariff instead of LT IVA industrial category, arguing that cold storage is integral to processing operations.
Finding of the Court:
The court found that the connection was rightly classified as a cold storage unit under LT VIIA based on regulatory commission orders, emphasizing the distinction between processing and storage activities.
Issues: Whether the electricity connection for the cold storage unit should be classified as LT VIIA commercial or LT IVA industrial considering its integration with seafood processing.
Ratio Decidendi: The classification of the electricity connection was based on the nature of operations and whether separate connections were justifiably obtained for distinct purposes, as outlined by the regulatory commission's prior orders.
Final Decision: The writ petition was dismissed.
J U D G M E N T
Whether the petitioner's connection bearing No.
5562012511 given by the Kerala State Electricity Board is liable to be included under the LT VII (A) commercial tariff- allegedly being a 'cold storage' or whether it is to be included under the LT IVA Industrial category- as applicable for a 'processing unit', attached with cold storage as contended by the petitioner, is the crucial point to be considered and decided in this case.
2. The sequence of events as narrated in the Writ Petition shows that the petitioner is a firm, stated as involved in the sea food processing and export, running the business under the name and style as Bell Foods, who started the activities in the year 1970, obtaining an electric connection with the consumer No.5562007952, under LT IV Industrial category. While so, the petitioner started another unit under the name M/s.International Merchandising Company, in the very same compound with a larger cold storage as per the standards prescribed by the European Union and a separate connection was obtained as consumer No.5562012511. By virtue of the activities being pursued and the relevant norms for categorisation and tariff, then in existence, both the said connections stood classified as 'Industrial category' till 30th November 2007.
3. In the meanwhile, the Regulatory Commission brought out a 'Tariff Revision' w.e.f. 01.12.2007, whereby the cold storages were brought within the category of 'Commercial' connection under LT VIIA. Aggrieved of the said decision, the petitioner and several other similarly situated persons had challenged the same by filing Writ Petitions before this Court stating that they were doing the operations making use of the cold storage in the very same or nearby premises, particularly in view of the inadequacy of space in the existing locations, and since the 'cold storage' formed an integral part of the process of manufacture of 'Sea Foods', the same could not be segregated and that there was no rationale for having re-classified the units as 'cold storages' to attract a higher tariff. This Court directed the matter to be considered by the Commission, pursuant to which, all the parties were heard, leading to Ext.P5 order passed by the Commission on 29.08.2008, which admittedly has become final.
4. As per Ext.P5, it was observed by the Commission that the industries like 'prawn peeling units' still continued to be classified and categorised as industrial units, where the processing activity was of minimal nature and the larger part was with regard to the storage element. Similarly, the reference made to the status of 'Ice cream' units as relied on by the petitioner was also referred to. After analysing the facts and figures, the Commission held that the 'processing unit' was very much entitled to be classified and categorised as LT IV industrial units and that the freezing and cold storage activity would stand billed under LT VII A Commercial, as mentioned in the Tariff Order 2007.
5. In the course of further steps followed, being aggrieved of the bills raised by the Electricity Board, still classifying the Unit of the petitioner having consumer No.5562012511 as in the Commercial LT VII A category, the petitioner approached the third respondent /Consumer Grievance Redressal Forum. After considering the grievance projected, the Forum observed that the matter required to be clarified at the hands of the Commission, pursuant to which, a clarification petition was filed before the Commission in this regard.
6. The matter was again considered by the Commission and referring to the various aspects, it was made clear that there was absolutely no obscurity in the order passed by the Commission, however, alerting the third respondent/Grievance Forum of its duty in accordance with the relevant provisions of law, and deprecating the cause, trying to shift the matter to be clarified by the Commission. It was reiterated by the Commission, as per Ext.P7 order, that the processing units
