AI Drafter 
TaxTMI 
TaxTMI 
1995 (3) TMI 473
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....le 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.Two questions alone arise for consideration in all these matters by virtue....
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....sp;(i) Petitions say that while their class of consumers account for consumption of 35% of the electrical energy and the class of agricultural consumers favourably created under the revisions also consume a like percentage. the former is called upon to pay 106 paise for unit (plus FCA)while the agricultural consumers arc required to pay a fixed 5.04 paise per unit; and that this preferred agricultural sector which was paying 12 paise per unit in the year 1971, 23.4 paise per unit in 1976, now pays only 5.04 paise per unit while the petitions who were paying 16.1 paise per unit in the year 1971 are asked to pay 106 paise per unit (plus FCA). The cost of production being 71 paise per unit the whole of the burden of the difference on account t....
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....n from major projects for both reliable and cheap irrigation, farmers depending on ground water based irrigation, most of whom are small and marginal farmers, have to incur relatively higher expenditure in lifting water, besides being vulnerable to recurring drought resulting in lowering of the water table in the wells. Moreover, in rural areas maintenance of electricity meters and the billings of individual farmers based on meter reading is be set with administrative defects leading to loss of revenue, hardship to the farmers and high collection cost. Keeping all the above factors in view, the Government feel that the present power tariff for agricultural pump sets needs rationalisation and that a flat rate system based on the horse-power ....
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....ts". 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. 7. In Hindustan Zinc Ltd. etc. etc.(supra), a similar challenge on the ground of discrimination between H.T. consumers, including the power intensive consumers, and other like L.T. consumers and agriculturists w....
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....y such direction of the State Government. Where the direction of the State Government, as in the present case, was to fix a concessional tariff for agricultural pump sets at a flat rate per H.P., it does relate to a question of Policy which the Board must follow. However, in indicating the specific rate in a given case, the action of the State Government may be in excess of the power of giving direction on the question of policy, which the Board, if its conclusion be different may not be obliged to be bound by. But where the Board considers even the rate suggested by the State Government and finds it to be acceptable in the discharge of its function of fixing the tariffs, the ultimate decision of the Board would not be vitiated merely becau....