Case Note & Summary
The case involved an application for clarification regarding the surcharge liability of Oswal Woolen Mills Ltd. concerning their electricity supply from the Punjab State Electricity Board. The dispute arose from a previous judgment dated 28.04.2006, where the court needed to clarify whether the cut-off date for converting supply from 11 KV to 33 KV was 13.05.1992 or if the surcharge was payable from that date. The court heard arguments from both parties and concluded that the company was liable to pay the surcharge starting from the expiry of one year after 13.05.1992, rather than from the date itself. The court acknowledged that the company had already paid the actual surcharge amount to the Board but clarified that the surcharge at the rate of 17.5% was not required under the tariff notification issued on 01.02.1994. The application was disposed of with these clarifications.
Headnote
A) Electricity Law - Surcharge Liability - Clarification on Surcharge Payment - Electricity Act, 2003, Section Not Mentioned - The court clarified that the company was liable to pay the surcharge from the expiry of one year from 13.05.1992, not from the date itself. The court noted that the actual surcharge amount had already been paid by the company, and the surcharge was not required under the tariff notification dated 01.02.1994. Held that the company must comply with the clarified surcharge payment timeline (Paras 1-3).
Issue of Consideration
Whether 13.05.1992 was the cut-off date for commencement of the period of one year for converting supply from 11 KV to 33 KV or higher voltage or if the surcharge was payable from that date.
Final Decision
The court clarified that the company was liable to pay the surcharge from the expiry of one year from 13.05.1992, and the actual surcharge amount had already been paid. The surcharge at the rate of 17.5% was not required under the tariff notification dated 01.02.1994.
Law Points
- surcharge liability
- electricity supply
- tariff notification
- jurisdiction of board
