IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF FEBRUARY, 2019 BEFORE:
THE HON’BLE MRS. JUSTICE S.SUJATHA WRIT PETITION Nos.22342-22343/2017 (GM – KEB) BETWEEN:
VARUN MOTORS PVT. LTD., # 41/7, 15TH CROSS, MES COLLEGE ROAD MALLESHWARAM, BANGALORE-560003 REP. BY ITS MANAGER PRASHANTH.H.R. ... PETITIONER [BY SRI M.L.SANTHOSH, ADV.] AND:
1. THE CHIEF ENGINEER [ELECTRICITY] PARADIGM PLAZA, 5TH FLOOR A.B. SHETTY CIRCLE, PANDESHWARA MANGALORE-575001.
2. THE GENERAL MANAGER [REVENUE] CORPORATE OFFICE, BESCOM K.R. CIRCLE, BENGALURU-560001.
3. THE ASSISTANT EXECUTIVE ENGINEER [ELE] N7 SUB-DIVISION, BESCOM KURUBARAHALLI BENGALURU-560086. …RESPONDENTS [BY SRI H.V.DEVARAJU, ADV.] THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER DATED 18.03.2017 VIDE ANNEXURE-H PASSED BY THE RESPONDENT No.1; AND ETC., THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:-
O R D E R The petitioner has challenged the order dated 18.03.2017 passed by the respondent No.1 at Annexure-H to the writ petition whereby the order passed by the respondent No.3 has been confirmed.
2. The petitioner is a company registered under the provisions of the Companies Act, 1956 and has obtained lease of the premises bearing Municipal No.72/19-6, Industrial Suburb, Rajajinagar, Bangalore- 560010. It appears that the earlier consumer of the installation, Sri.P.Bhaskar had duly applied and received approval from the BESCOM for 300 KVA for industrial purpose with a tariff applicable to HT2[a] for the connection bearing RR No.N4HT358 [4405946550] to the said premises. The petitioner herein has obtained the lease of the said premises and is claiming to be a service station coming within the ambit of workshop where no sale of the vehicles is involved. The respondent No.3 issued a provisional demand notice for payment of back billing charges to an amount of Rs.7,43,528/- based on the interpretation that the nature of business of the petitioner is that of the type HT2[b] and not HT2[a]. The objections were submitted by the petitioner contending that the petitioner’s activity comes under the industrial category as such the petitioner is a workshop falling under the HT2[a] as per the Tariff Schedule issued by the Karnataka Electricity Regulatory Commission ['KERC’ for short]. However, an order was passed by the respondent No.3 – Assessing Officer holding that the Tariff applicable to the petitioner is HT2[b] and directed the petitioner to convert the installation to HT2[b] within a period of three months. Aggrieved by the same, the petitioner has preferred an appeal before the respondent No.1 [the Appellate Authority] under section 127 of the Electricity Act, 2003 which came to be rejected. Hence, these writ petitions.
3. Learned counsel for the petitioner would submit that the petitioner is an industrial unit as per the Tariff of KERC Act and the activity of servicing of automobiles carried on by the petitioner would come within the ambit of workshop. The activities of repairing and servicing of cars would not be construed as a commercial transaction to bring it within the Tariff of HT2[a].
4. Learned counsel for the respondents justifying the impugned orders would submit that the tariff schedule LT-3 provides for service stations/garages but such Tariff is not applicable for the HT Schedule, as regards service stations/garages are concerned. In the absence of any definition for the types of installations not covered under any Tariff Schedule, the licensee is permitted to clarify such installation under the appropriate Tariff Schedule. Hence, the decision taken by the respondent Nos.3 and 1 to bring the service station/garages under the HT2[b] is justifiable.
5. I have given my anxious consideration to the arguments advanced by the learned counsel appearing for the parties and perused the material on record.
6. The Tariff Schedule HT2[a] is applicable to Industries, Factories, Workshops, Research and Development Centres, Industrial Estates, Milk Dairies, etc. Whereas, Tariff Schedule HT2[b] is applicable to Commercial Complexes, Cinemas, Hotels, Boarding & Lodging, Amusement Parks, Telephone Exchanges, Race Course, All Clubs, T.V. Station, All India Radio, Railway Stations, Air Port, KSRTC Bus Stations, All Offices, Banks, Commercial Multi-storied buildings, APMC Yards, Stadiums other than those maintained by Government and Local Bodies. Indisputably, service station/garages does not find a place in Tariff Schedule HT2[b]. On the other hand, the work shop found in the Tariff Schedule HT2[a] would include service station/garage considering the activity of service of repairing and servicing of cars in the workshop where no sales activity is carried on.
7. In such circumstances, the reasoning given by the authorities to bring the activity of service station/garage of the petitioner under the Tariff Schedule HT2[b] cannot be sustained. The reference made to any other installation to bring it within the Tariff Schedule HT2[b] would not be relevant for the purposes of determining the Tariff Schedule of the petitioner herein. Accordingly, the impugned orders are liable to be set aside.
In the result, writ petitions are allowed.
Impugned orders are quashed. The Tariff Schedule HT2[a] shall be made applicable to the petitioner herein and the authorities shall re-evaluate the billing in accordance with law.
Sd/- JUDGE NC.