HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 8904 OF 2020 AND WRIT PETITION No. 18493 OF 2023

COMMON ORDER:

WRIT PETITION No. 8904 OF 2020 Petitioner is stated to have indulged in manufacturing activity of plastic produce which involves rolling of poly film with non-adhesive colours to produce self-designed poly film which is being used in the manufacture of paper plates. Initially, they obtained necessary registration certificate from the Industrial Department and subsequently, as per the policy of the Government, Udyog Aadhar Memorandum for the manufacture of above produce was obtained by petitioner from the District Industries Centre vide proceedings dated

02.01.2017.

1.1. It is stated, petitioner initially obtained 99 HP load and subsequently was sanctioned standby load of 99 HP power supply. During inspection being carried out at regular intervals, at no point of time, according to petitioner, any irregularities whatsoever have been pointed out as against their Service Connection (SC). The DPE wing conducted inspection on 05.02.2019, pursuant to which, the 3^rd respondent issued notice dated 21.02.2019 in respect of Service Connections No. 340505920 and 340501184; in both the notices, the 3rd respondent alleged that petitioner had been is using its service connections for printing purposes on the plastic sheet roles which is not a manufacturing activity; as per the Tariff order 2011-12, printing activity would come under LT Category-II i.e. commercial activity. Petitioner submitted explanation dated 11.03.2019 denying allegations and stating that they are carrying on manufacturing activity and not commercial activity, therefore, the service connections would come under LT category-III.

1.2. However, the 3^rd respondent passed provisional assessment order dated 07.05.2019, back-billing petitioner to the tune of Rs.6,35,502/- in respect of Service Connection No. 3405-05920 from 11.02.2018 to 11.042019 (alleged unit loss at 1,91,771) and in respect of Service Connection No. 3405-05920, Rs.5,40,477/- for the said period (alleged unit loss at 1,63,419). Petitioner submitted representation before the 2nd respondent on 01.07.2019. It is stated, the 2nd respondent dropped all the allegations made by the 3rd respondent and consequently, they entered into LT Agreement with petitioner for LT category-III (industrial) service connection.

1.3. To their surprise, it is stated, petitioner received another provisional assessment notice dated 06.02.2020 impugned in this Writ Petition from the 3^rd respondent wherein it is alleged that during inspection on 01.02.2020, petitioner was using power supply for printing purpose; as per the tariff order 2011-12, printing activity comes under LT category-II hence, they proposed back-bill to their service connection. Petitioner is stated to have submitted detailed representation on 17.03.2020 to the 2^nd respondent. Curiously, the 4^th respondent started issuing bills from April 2019 again billing petitioner under LT category –II (Commercial). The 4^th respondent collected the excess amount of Rs.6,07236/- under threat of disconnection. Apart from that, suddenly in the bill dated 11.06.2020, the 4th respondent included Rs.5,72,101/- which amount was demanded by the 3^rd respondent vide notice dated 06.02.2020. Hence, petitioner prays to declare the notice dated

06.02.2020 of the 3^rd respondent as highly illegal, arbitrary.

2. This Court by order dated 24.06.2020 granted stay of collection of bills under LT category – II (Commercial) and also directed not to disconnect power supply.

3. During currency of above interim order, petitioner is stated to have received order dated 24.06.2020 of the 1^st respondent stating that on 01.02.2020, the 3rd respondent inspected petitioner’s premises and reiterating the allegations in the notice dated 06.02.2020 issued by the 2^nd respondent, the 3^rd respondent issued report dated 17.06.2020 based on which, the 2^nd respondent caused back billing to the tune of Rs.5,61,