OSWAL WOOLEN MILLS LTD. versus PUNJAB STATE ELECTRICITY BOARD & ANR.

OSWAL WOOLEN MILLS LTD. versus PUNJAB STATE ELECTRICITY BOARD & ANR.

The Board, being a statutory authority, can levy surcharge only in terms of tariff notification issued under Sections 46 and 49 of the Electricity (Supply) Act, 1948, and not based on circulars. Surcharge @ 17.5% was only leviable for Arc furnace load consumers as per notification, not all industrial consumers. The company is liable to pay the surcharge from 13.05.1992, but not after the tariff notification dated 01.02.1994.

Parties
Appellant: Oswal Woolen Mills Ltd.; Respondent: Punjab State Electricity Board
Jurisdiction
India
Judgment Date
28 April 2006
Procedural Posture
Civil Appeal / Disposal of Cross Appeals
Outcome
Civil Appeal No. 2335/2006 partly allowed; Civil Appeal No. 2334/2006 dismissed.
Legal Topics
Tariff Notification, Levy of Surcharge, Statutory Authority Powers, Executive Orders Vs Statutory Notifications
Electricity Law Administrative Law Tariff Notification Levy of Surcharge Statutory Authority Powers Executive Orders Vs Statutory Notifications

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Parties

Oswal Woolen Mills Ltd.

Appellant

Punjab State Electricity Board

Respondent

Procedural Posture

Civil Appeal / Disposal of Cross Appeals

Legal Issues

  1. 1 Whether the Board can levy surcharge based on circulars, or only on tariff notification
  2. 2 Applicability of tariff notification to surcharge on industrial consumers
  3. 3 Calculation of one-year exemption period for surcharge

Ratio Decidendi

The Board, being a statutory authority, can levy surcharge only in terms of tariff notification issued under Sections 46 and 49 of the Electricity (Supply) Act, 1948, and not based on circulars. Surcharge @ 17.5% was only leviable for Arc furnace load consumers as per notification, not all industrial consumers. The company is liable to pay the surcharge from 13.05.1992, but not after the tariff notification dated 01.02.1994.

Court Disposition

Civil Appeal No. 2335/2006 partly allowed; Civil Appeal No. 2334/2006 dismissed.

Orders

  • Company liable to pay surcharge with effect from 13.05.1992; no surcharge required to be paid after 01.02.1994 in terms of tariff notification.
  • Each party to bear its own costs.