ORDER
1. This writ petition is filed for a writ of Mandamus declaring, the billing by the respondents in respect of supply of energy for the supply of water under H.T.Category I, as illegal and direct the respondents to charge the same under H.T.Category VI. The writ petition also prayed for further relief by suitably directing the respondents to fix meters for street lighting and charge accordingly.
2. The learned Counsel appearing for the petitioner strenuously contended that the petitioner’s water processing unit can be charged only under Category VI and not under Category I, as is being done by the respondent- Electricity Board. He took me through the Category I and Category VI in support of his arguments. The learned Counsel appearing for the Electricity Board seriously contended that the electricity consumed by the Warangal Municipal Corporation for the purpose of water processing unit is liable to be charged under Category I only and accordingly, the billing was being done for all these years to all the Corporations. He further submitted that Category VI does not apply to the petitioner’s water supply works.
3. The fact that the Warangal Municipal Corporation has a water processing unit is not disputed and it is also not disputed that energy is being consumed for the purpose of processing the water, in order to supply the same to the residents of town. The learned Counsel appearing for the petitioner contended that the said unit cannot be said to be an ‘industry’, in the sense it is not making any profit out of it and in fact it is processing the water, so as to provide pure water to the citizens of Warangal. He also submitted that in fact that was the interpretation laid down by the Government of Andhra Pradesh in its letter dated 21-2-1997.
4. In order to appreciate the rival contentions, I have to note Category Nos. I and VI, as per the gazette notification dated 30-7-1996 issued by the Andhra Pradesh State Electricity Board. They are extracted as under-
“H.T.Catezorv-I
This tariff is applicable for supply to all H.T. Industrial Consumers other than Power Intensive Consumers under H.T.Category-III. Industrial purpose shall mean manufacturing, processing and/or preserving goods for sale, but shall not include shops, business Houses, Offices, Public Buildings, Hospitals, Hotels, Hostels, Choultries, Restaurants, Clubs, Theatres, Cinemas, Railway Stations and other similar premises notwithstanding any manufacturing, processing or preserving goods for sale.
…..
Note
1. The consumption of energy for lights and fans in the factory premises in excess of 10% of total consumption shall be billed at 305 paise per unit provided lights and fans consumption in the unit is separately metered.
2. In case segregation of lights and fans loads has not been done, 15% of the total consumption shall be billed at 305 paise per unit and the balance at HT.Category-I rates applicable.
3. Colony Consumption
The consumption of energy exclusively for the residential colony/township in a month, separately metered with meters installed by the consumer and tested and sealed by the Board shall be billed at 200 paise per unit
.T. Category- Vi
Townships and Residential Colonies
This tariff is applicable to H.T. supply
exclusively for Townships, Residential Colonies of consumers under HT Categories I to V and bulk supplies for domestic purpose such as lighting, fans, hearing and common facilities such as non-domestic supply in residential area and street lighting and water supply etc.
Conditions
(i) The consumer shall lay suitably internal distribution lines at his own cost and maintain the same in accordance with the statutory rules and Board’s
directions if any.
(ii) The persons to whom supply is given by the consumer shall not be charged for the electricity consumer by them at rates above the rates charged by the Board for similar category of consumers of the Board.”
From reading H.T. Category-I, I find that this category applies to all the H.T. Industrial Consumers other than power intensive consumers under H.T. Category-III. The nature of the power intensive consumers found under Category-III is clarified by the said category, and it is stated therein that Power Intensive Industry shall mean an industry wholly or substantially involved in the manufacture of one or more of the products listed thereunder and whose contracted demand is 1000 KVA and above. It is not the case of either side that the water processing unit in question falls under Category-III. The H.T. Category-I itself clarifies that industrial purpose shall mean manufacturing, processing and/or preserving goods for sale etc. It is further stated that the shops, business houses, offices, public buildings, hospitals, hostels, choultries would not fall within industrial purposes. It also clarified that other similar premises though manufacturing, processing or preserving goods, are not included, notwithstanding such manufacturing process. The learned Counsel appearing for the respondent – Electricity Board contends that the water works in question is an industry, therefore, it is liable to tariff under Category I. On the other hand, the learned Counsel for the petitioner contended that it is not an industry and it has not profit motive and in fact is a social service organisation and as such it is got to be charged as the one having non-industrial purposes. He further stated that at any rate, Category-VI has clarified that the tariff applicable to category Nos.I to V shall not apply to the H.T. supply exclusively for townships, residential colonies of consumers and bulk supplies for domestic purpose such as lighting, fans and healing. It further provides that it also does not apply to certain common facilities such as non-domestic supply in residential area and street lighting and water supply etc. On the basis of this provision under Category-VI., the learned Counsel for the petitioner contended that the water processing unit for the petitioner may be charged with a tariff as provided in Category-VI.
5. There is substance in the argument of the learned Counsel for the petitioner. From reading of H.T.Category-I, it is clear that the said category is meant for industrial consumers, only and the shops, business premises, public buildings, hospitals, etc and railway stations have been excluded from Category-I. Even the other similar premises notwithstanding any manufacturing, processing are also excluded. The unit in question is a water processing unit and it purifies the water for the purpose of supply pure water to the citizens for their domestic consumption. From this it follows that Category-I does not apply to the unit in question. Category-VI further clarifies that this category also applies if the H.T. supply is used for townships, residential colonies and for common facilities such as non-domestic supply in residential area and street lighting and water supply etc. The word ‘water supply’ indicates that for the purpose of water supply in townships or in residential colonies if any energy is used, the same shall be charged under this Category VI. Therefore, it follows that it is Category VI that would be applicable to the water processing unit in question. However, the learned Counsel appearing for the Electricity Board contended that in order to attract Category-VI, the conditions specified therein shall be fulfilled. He submitted that the consumer shall lay suitable internal distribution lines at his own cost and such persons to whom electricity supply is made, shall not charge tariff higher than what Electricity Board charges for similar categories. But there is no material on record as to who had laid the suitable internal distribution lines, of the unit in question. At any rate, one thing is clear that the electricity used for water processing unit for the supply of water, even if it is for non-domestic purposes, in a town or residential area, the same shall he charged as per the tariff under Category No-VI. From this it follows that water processing unit of the Municipal Corporation is required to be charged under Category-VI only. In fact, the Government of Andhra Pradesh in consultation with the Energy Department has clarified this position in its letter dated21-2-1997. The said letter reads as under:
“Government of Andhra Pradesh
Municipal Administration and Urban
Development Department.
Memo.No.27984/D/2/96-l MA.
Dated: 21-2-1997.
Sub :–W.M.c. – Change of tariff from H.T. Category-I to Category-VI and waiver of surcharge – Reg.
Ref :–(!) From the Commr.W.M.C. D.O.Lr.No.CC/Comm/ASO/WGL/ DORP/853/96 dated 2-12-1996 addressed to Commr. Warangal Municipal Corporation.
The attention of the Commissioner, Warangal Municipal Corporation is invited to the references cited and he is informed that the matter has been examined in consultation with the Energy Department. They have informed that the H.T. Category-VI tariff will be applicable to Municipal Water Works from 30-7-1996 i.e., date of issue of revised tariff notification. All arrears, however, should be cleared as billed by APSEB as per earlier categorisation.
J.C. Sharma
Joint Secretary to Government.”
From this letter also it is further clear that the Energy Department has agreed to such an interpretation. However, the Government clarified that Category-VI tarrif would be applicable to municipal water works with effect from 30-7-1996 i.e.. the date of issue of revised tariff notification and it does not apply to the arrears, if any, regarding the energy that was consumed prior to 30-7-1996, From these facts it is clear that it is Category VI, which applies to the water processing unit of the petitioner – Corporation in question, even as understood and interpreted by the State government.
6. For the above reasons, I allow the writ petition and direct the respondent -Electricity Board to charge the petitioner’s water processing unit under Category-VI witheffect from 30-7-1996. If any excess amount is collected consumed after 30-7-1996, the same shall be adjusted in future bills. No costs.