THE HON’BLE SRI JUSTICE PULLA KARTHIK

ORDER:

This Writ Petition, under Article 226 of the Constitution of India, is filed seeking the following relief:

“…to issue a writ or order of direction more particularly one in the nature of Writ of Mandamus (a) declaring the Condition No. 9.3.2.9 of the General Terms and Conditions of Supply of the 1^st respondent as ultra-virus of Section 126 of the Electricity Act, 2003 and (b) the order passed by the 3^rd respondent in Letter No. SEA/HYD/SAH.No. 10934 D.No. 82/11-12 dated 9.4.2012 and as modified by the 2^nd respondent vide Proceedings No. CGM/MZ/Hyd/U&M/F.SC.No. SZ008494/d.No. 259/12 dated 3.8.2012 as illegal, arbitrary, unjust, irrationale and contrary to Clause 8 of the A.P. Electricity Regulatory Commission (Consumers’ Right to Information) Regulation, 2000 and Section 26 of the Electricity Act, 2003 and consequently, set aside the same and pass…”

2. The brief facts of the case are that the petitioner is a private limited company incorporated under the provision of the Companies Act, 1956. It had established a small scale industrial unit, which is engaged in manufacture of fans and related components, for which, the petitioner company had obtained an L.T. Category-III (Industrial) Service Connection bearing No.52008494 from respondent No.1 licensee, under the provisions of the Electricity Act, 2003. The petitioner’s industrial unit has been subjected to periodic inspections by the officials of respondent No.1 at frequent intervals of time, i.e., at least once in every month, for the purpose of taking meter reading in the first week of every month. The said inspections were conducted till December, 2011, and until then, there was no dispute whatsoever about their service connection. While so, one more inspection had taken place on 06.01.2012. In pursuance thereof, respondent No.4 issued a provisional assessment notice vide letter No.ADE/OP/D-XVI/BLNG/D.No.2548/11 dated 24.01.2012, alleging that at the time of inspection on 06.01.2012, it was found that the petitioner was having three phase healthy electrical supply under L.T. Category-III and that the petitioner had connected a load of 41 HP for the office and godown, and 37 HP for the industrial activity, which comes under the commercial category. On the said premise, respondent No.4 assessed the value of energy said to have been put to unauthorized use as Rs.23,42,211/-. Thereafter, the petitioner Company had filed its objections on the said provisional assessment notice before respondent No.3. Subsequently, respondent No.3 passed a final assessment notice dated 09.04.2012 by modifying the value of alleged energy said to have been put to unauthorized use by the office of the petitioner Rs.11,20,456/-. Assailing the same, the petitioner herein had preferred an appeal before respondent No.2 on 18.05.2012, and respondent No.2 vide order dated 03.08.2012, fixed the liability at Rs.10,25,220/-, for the period from 06.01.2009 to

06.01.2012 (three years period). Hence, the present writ petition.

3. Heard Smt. K. Jayasree, learned counsel appearing for the petitioner and Sri N. Sreedhar Reddy, learned Standing Counsel appearing on behalf of the respondents.

4. Learned counsel for the petitioner contended that respondents erred in not taking into consideration that the petitioner Company is an industrial unit, having obtained approvals from competent statutory authorities like the Ministry of Industries, Government of India, which issued proceedings No.1641/SIA/IMO/99 dated 19.08.1999, and the Commercial Taxes Department, Government of Andhra Pradesh, which issued a Certificate of Registration (Form-B) CST No.HYR/05/1/ 1029/77-78 under the Central Sales Tax Act, 1956, is engaged in the manufacture of fans and its related components. It was further contended that the respondents failed to appreciate that the petitioner’s industrial activity involves manufacturing fans and its related components, with the finished goods being stored in a godown, w