2007 (9) TMI 702 - AT - Indian Laws

Summary

Issues Involved:
1. Validity of the recovery of parallel operation charges by Gujarat Electricity Board (GEB) before 01.09.2000.
2. Jurisdiction of Gujarat Electricity Regulatory Commission (GERC) to quash GEB's circulars.
3. Entitlement of GEB to retain parallel operation charges recovered before 31.08.2000.

Summary:

1. Validity of the Recovery of Parallel Operation Charges by GEB Before 01.09.2000:
The respondent, Oil & Natural Gas Corporation Ltd. (ONGC), sought a refund of Rs. 1,22,27,225/- recovered by GEB as parallel operation charges before 01.09.2000, claiming it was in contravention of the Commission's order dated 31.08.2000. The Commission upheld ONGC's contention and directed the refund of these charges. The appellant, Gujarat Energy Transmission Corporation Limited, challenged this order.

2. Jurisdiction of GERC to Quash GEB's Circulars:
The Commission's order dated 31.08.2000 quashed GEB's Circular No. 706 dated 28.01.2000, stating that parallel operation charges were a form of tariff and could only be determined by the Commission. GEB did not challenge this order nor sought approval for Circular No. 687 under Section 29 of The ERC Act. The Commission later quashed Circular No. 687 in its order dated 06.09.2002, which was issued before the Commission became operational on 19.04.1999.

3. Entitlement of GEB to Retain Parallel Operation Charges Recovered Before 31.08.2000:
The Tribunal examined the legal situation and concluded that Circular No. 687, issued on 21.12.1998, was valid as it was issued before the Commission was operational. The Tribunal referenced the case of Benani Zinc Ltd. v. Kerala State Electricity Board, which clarified that tariff determination by the Board was valid until the Commission was constituted. Therefore, Circular No. 687 was not void ab initio and remained in force until specifically set aside by the order dated 06.09.2002. The Tribunal held that GEB was entitled to recover parallel operation charges up to 31.08.2000, and the claim for a refund by ONGC was not sustainable.

Decision:
The Tribunal allowed the appeal, setting aside the impugned order that directed the refund of parallel operation charges paid during the period before 31.08.2000.