J. Sagar Associates (JSA) successfully represented Tata Power Renewable Energy Limited (“TPREL”) before the Hon’ble Appellate Tribunal for Electricity (“APTEL”) in challenging Maharashtra ERC’s Order, denying Change in Law compensation to TPREL (project developer) on account of increase in rate of GST on EPC Contracts for setting up solar power plants in India.
By its Judgment dated 20.09.2021, APTEL has set-aside Maharashtra ERC’s Order and directed grant of restitutory relief to TPERL along with carrying cost. The Judgment is significant since:-
- It clarifies that the width of powers of the Commissions in deciding Change in Law cases is restricted to the Change in Law provision contractually agreed between the parties. Commissions do not have the power to introduce words to the Change in Law provision or reject compensation claim on account of business affairs of the project developer.
- It dissuades the Commissions from denying relief in the garb of ‘prudence check’ and/ or project developer not acting as per ‘prudent utility practices’.
- It provides a major relief to the project developer on account of sudden increase in rate of GST payable on supply of solar panel, modules etc, which had adverse impact on the project economics.
TPREL was represented by JSA Team comprising Partners – Abhishek Munot and Kunal Kaul.