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Electricity – Unit of Drug Manufacturer – If Commercial or Industrial tariff is applicable

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The tariff depends on the category of activity and not the place.  The argument that if R & D activity is carried out in industrial premises, industrial tariff leviable and if it is carried out outside industrial premises, commercial tariff is leviable, is clearly not only illogical but also unreasonable and arbitrary.

If it falls in the category of “R & D”, then the commercial tariff is applicable.   If the activity falls in manufacturing activity, then the industrial tariff is applicable.

The respondent is given licence for manufacture for sale or for distribution of drugs.   The Appellant Authority held that the said activity is manufacturing activity and therefore, industrial tariff is applicable.

Merely because the respondent is manufacturing validation batches of various drugs using DNA technology from other others, it cannot be said that there is no manufacturing activity. The electricity supply was for industrial use.

Section 126 Explanation (b)(v) of the Electricity Act, 2003, uses the word “premises” and not the “consumer”.  The electric supply is used in the same premises in which it was authorised.   Merely because the respondent is occupying the said premises on leave and licence and same has not been intimated to the Board, it cannot be said that there was unauthorised electricity use.

Judgment dated 2.7.2024 of the Bombay High Court in Writ Petition No.8882 of 2018 of Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) Vs. USV Private Limited as Aviat Healthcare Private Ltd.

 

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