JSA successfully represented UltraTech Cement Limited (“UTCL“) before Ld. Maharashtra Electricity Regulatory Commission (“Ld. MERC”) in proceedings challenging retrospective re-classification of tariff category applicable to Ready Mix Concrete Plants (“RMC Plants”).
Ld. MERC vide Order dated 03.10.2023 held the following in favour of UTCL and passed consequential reliefs:
- The activity carried out by UltraTech Cement Ltd. cannot be equated with ‘construction activities’ as the output provided by RMC Plants has different forms than its input and is processed scientifically.
- Distribution Licensees are expected to interpret previous tariff orders of Ld. MERC and apply the tariff category based on usages analogous to those specified in such tariff orders.
- Activities such as cement manufacturing, steel manufacturing etc. although in the nature of ‘construction activities’, is to be categorised as ‘Industrial’.
Ld. MERC noted that the above is applicable to similar RMC Plants across Maharashtra. Hence, the Order comes as a relief to the entire RMC industry in Maharashtra, which has been dealing with erroneous tariff categorization by MSEDCL and consequent retrospective demands.
The matter was argued by Abhishek Munot (Partner) and anchored by Malcolm Desai (Principal Associate).
Our Disputes Team Comprised Lead Partner – Abhishek Munot, and Principal Associate – Malcolm Desai.