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Showing contexts for: APSEB in M/S. Real Food Products Ltd. & Ors ... vs A.P. State Electricity Board & Ors on 1 March, 1995Matching Fragments
J.S. VERMA, J.:
1.These appeals and the connected matters arise out of the common judgment of a Division Bench of the Andhra Pradesh High Court in certain writ appeals, reported in AIR 1991 AP 141 (Andhra Pradesh State Electricity Board vidyut Soudha and others vs. The Gowthami Solvent Oils and Another), preferred against the decision of a learned Single Judge.
High Tension (Industrial) Consumers, who are the appellants in this Court filed writ petitions in the Andhra Pradesh High Court challenging the revision of tariffs in B.P.Ms. No. 671 dated 10.6.1987 (w.e.f 15.7.1987) as well as the further revision of tariffs in B.P.Ms. No.353 dated 15.4.1989 (given effect from 1.6.1989). The history of revision of tariffs by the Andhra Pradesh State Electricity Board (for short "the Board") in the background of which the challenge to these B.P.Ms. has to be examined, is mentioned in the impugned judgment. Accordingly, the facts material for consideration of the points required to be decided are alone mentioned herein.
2. With a view to mitigating hardship to small and marginal farmers depending solely on well irrigation and to give a fillip to agricultural production in the State, the Government under Section 78-A of the Electricity (Supply) Act, 1948 direct that, supersession of the instructions issued in the letter cited (dated 201-1982), the APSEB shall revise the elcctricity tariff for irrigation wells to Rs.50/ - per H.P. per annum, and that this rate shall take effect from 1-11-1982.
3. The A.P. State Electricity Board is requested to take immediate necessary action accordingly."
5. The variation was made later in the flat rate Rs.50/- per H.P. annum from time to time which is not material for decision of the points involved.
6. The Board then introduced the concept of "FuelAdjustment Cost" (FCA) by amending the H.T. tariffs, the details of which are not material for the present pur- pose. The concept of FCA and the flat rate tariff system was then made a permanent feature by the Board. A batch of writ petitions was filed in the Andhra Pradesh High Court in 1984 questioning inter alia the levy of FCA only upon H.T. consumers and the fixation of flat rate tariff for agriculturists, by certain "power intensive units". The High Court rejected the challenge and dismissed the writ petitions. It was held that it was neither irrational nor unreasonable to pass on the burden of rise in fuel cost only to H.T. consumers; and the flat rate tariff system for agricultural pump sets being a concession in favour of an under-privileged category of consumers was a policy decision which was not open to challenge. The decision was upheld by this Court in Hindustan Zinc Ltd. etc.etc. v. Andhra Pradesh State Electricity Board and Others (1991) 3 S.C.C. 299.