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9. Sri Shambhu Chopra, learned counsel appearing on behalf of respondent nos. 2, 3 and 5, submitted that under Clause 4.6(b) of U.P. Electricity Supply Code, 2005 (hereinafter referred to as 'the Code'), the estimate would include security deposit, charges for laying the service line, distribution mains (if required) & material, and system-loading charges, etc. as determined by the licencee with the approval of the Commission once in two years. Per Clause 4.6(c) of the Code, the respondents had published cost data book and according to which, processing fee is non-refundable and it is also provided therein that in case system-loading charge for the new load is lower than what is already paid by the consumer, no refund shall be made. Therefore, the claim of the petitioner for refund of system-loading charges is not sustainable in law. He also invited our attention towards the balance sheet of respondent no. 2 as on 31.3.2013 to show that the consumer's contribution towards service line and other charges constitutes the capital reserve of the Company and thus it is submitted that the amount deposited towards system-loading charges was non-refundable. He also urged that the Corporation was compelled to establish new feeder of 220 KVA to supply electricity in rural areas, because load of 3200 KVA was reserved for the petitioner's industrial unit for two years. He also urged that the Executive Engineer of the concerned Division by letter dated 8.8.2012 requested for sanction of Rs. 4.65 lakhs as the estimated cost for strengthening of one number 33 KV Bay for furnace - IV Feeder at 220 KV Sub Station, Nara to facilitate supply of electricity to the petitioner. He further relied on letter of Chief Engineer dated 21.8.2012 to Executive Engineer (Technical), written in reference to proposed power connection to the petitioner-company. It mentioned that the new power connection is to be supplied from 33 KV Shahpur Bay which till that time was a rural feeder. Since, it was to be utilized for industrial units and therefore the apparatus on the aforesaid Bay were required to be upgraded to ensure uninterrupted power supply to industrial units. The said letter was in continuation of the letter of Executive Engineer dated 8.8.2012 aforenoted. According to the respondents, the work of strengthening of equipments for commissioning of 33 KV Bay at 220 KV Sub Station, Nara was carried out through the contractor M/s Pal Electricals. The contract given in its favour was for Rs. 28,020/-. He also submitted that the respondents had to undertake bifurcation of 33 KV line and construct a new 33 KV line and install four-pole structure near the place of consumer. He places reliance on Clause 4.21 of U.P. Electricity Supply Code, 2005 and the provisions of Chapter IV of Cost Data Book in support of his contention that Rs. 32,00,000/- realized as system-loading charges was non-refundable. A letter of the Superintending Engineer dated 19.3.2013 has also been filed to show that the respondents were in a position to release power connection as soon as NOC was submitted. A letter of Executive Engineer dated 19.12.2014 addressed to Superintending Engineer mentioning that according to Cost Data Book, system-loading charge was non-refundable, has also been relied upon. Reliance has been placed on the judgment of the Supreme Court in Central GST Delhi-III vs. Delhi International Airport Ltd.1

22. Clause 4.21 relates to cost of servicing of new connection, reduction/enhancement of load and reads thus: -

4.21 Cost of Servicing a New Connection Reduction/Enhan cement of Load
(a) The consumer shall pay the cost of service line etc. and system loading charges as a cost of servicing a New Connection/Enhancement of Load to the licencee. These charges shall be either on the basis of the schedule of standard charges specified in the cost data book duly approved by the Commission, or in its absence, the actual cost of works as given in the estimate (clause 4.6) prepared by the Licencee. For reduction of load, system loading charges shall not be refunded, but if the load is enhanced again by the same consumer, only enhanced system loading charges over and above the system loading charges already deposited shall be charged.]

System Loading Charges

35. Clause 4.6 of the Code as noted above stipulates that the estimate shall include (i) security deposit (ii) charges for laying the service line distribution mains (if required) and material and (iii) system loading charges, etc. as determined by the licensee with the approval of the Commission in two years. It further provides that after approval of the Commission, the licensee shall publish a cost data book specifying the charges realisable from a new applicant or a person seeking variation in supply. System loading charges is not separately defined, either under the Act or under the Code. However, it is evident from Clause 4.6(h) that system loading charge is the normative cost realized by the licensee for extension and upgradation of the system for meeting demand of new consumers/consumers desiring enhancement of load. The same conclusion is deductible from Clause 8 of Chapter I of Cost Data Book. It reads as follows:-

"8. Presently, the licensees are charging a part of the expenditure incurred or to be incurred to upgrade its system of supply from the applicants of new connection/enhancement of load as System Loading Charges, and also recovering a part of it from consumers through tariff. Analysis of this charge is given in Annexure-1."

36. Clause 4.21 of the Code requires the consumer to pay system loading charge as cost of servicing a new connection/enhancement of load to the licensee. Clause 4.21 which is relevant is reproduced below: -1-28 "4.21 Cost of Servicing a New Connection / Reduction / Enhancement of Load : (a) [The consumer shall pay the cost of service line etc. and system loading charges as a cost of servicing a New Connection / Enhancement of Load to the licensee. These charges shall be either on the basis of the schedule of standard charges specified in the cost data book duly approved by the Commission, or in its absence, the actual cost of works as given in the estimate (clause 4.6) prepared by the Licensee. For reduction of load, system loading charges shall not be refunded, but if the load is enhanced again by the same consumer, only enhanced system loading charges over and above the system loading charges already deposited shall be charged.]