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AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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Issues: (i) Whether consumption of electricity in excess of the sanctioned or connected load in the same premises and for the same purpose amounts to unauthorised use of electricity under Section 126 of the Electricity Act, 2003. (ii) Whether assessment under Section 126(6) for such unauthorised use can be restricted to twice the fixed charges and whether Regulation 153(15) of the Kerala Electricity Supply Code, 2014 is valid.
Issue (i): Whether consumption of electricity in excess of the sanctioned or connected load in the same premises and for the same purpose amounts to unauthorised use of electricity under Section 126 of the Electricity Act, 2003.
Analysis: Section 126 is a complete code for assessment of unauthorised use of electricity. The expression "unauthorised use of electricity" is of wide import and is not confined to the illustrative clauses in the Explanation. Excess consumption beyond sanctioned or connected load breaches the terms of supply and the statutory conditions, and therefore falls within unauthorised use even if there is no change in purpose or tariff category.
Conclusion: Yes. Consumption beyond sanctioned or connected load constitutes unauthorised use of electricity under Section 126.
Issue (ii): Whether assessment under Section 126(6) for such unauthorised use can be restricted to twice the fixed charges and whether Regulation 153(15) of the Kerala Electricity Supply Code, 2014 is valid.
Analysis: The tariff contemplated by Section 126(6) includes both fixed charges and energy charges. Therefore, assessment at twice the tariff is not confined to fixed charges alone. Regulation 153(15), which excludes unauthorised additional load in the same premises and under the same tariff from the scope of unauthorised use, travels beyond Section 126 and cannot stand when tested against the parent Act and the scheme of the Electricity Act, 2003. A delegated regulation cannot create a substantive exception inconsistent with the statute.
Conclusion: No. Assessment cannot be limited to twice the fixed charges, and Regulation 153(15) is invalid being inconsistent with Section 126.
Final Conclusion: The impugned view of the High Court was set aside, the appeals were allowed, and the statutory framework under Section 126 was reaffirmed as governing assessment for excess load cases, including both fixed and energy charges.
Ratio Decidendi: Excess consumption beyond sanctioned or connected load is unauthorised use of electricity under Section 126 of the Electricity Act, 2003, and assessment under that provision must be made at twice the applicable tariff, which includes both fixed and energy charges; a subordinate regulation cannot carve out an exclusion inconsistent with the parent statute.
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