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NO. P/407/2013 - M/s.Zahi Rubbers India Ltd., Aluva
The appellant is a Company manufacturing “pre-curved tread rubber” for the tyre manufacturing industry. In order to meet the power requirements of the new factory, the appellant had applied for power allocation to the tune of 3500 KVA under EHT tariff. The appellant had also constructed a 110 KV Sub Station for this purpose after meeting its entire cost. In addition to the above, the appellant had to construct a Tap line to the above Sub Station for which he had remitted Rs.9,50,000/- , on work deposit basis. The appellant has also remitted Rs.7,10,000/- as 10% of the security deposit. As the tyre industry faced huge recession and there was no adequate demand for the products, the Appellant take a decision not to go ahead with the new factory and intimated the respondent that the service is no longer required and hence submitted a proposal to take over the 110 KV Sub Station on payment of fair compensation. But no decision was taken by the respondent on the above proposal, even though there had been some preliminary studies in this regard. As the proposal was not materialised, appellant requested to refund the security deposit. It is alleged that, instead of refunding the security deposit, the respondent had made an unsustainable demand on the appellant for Rs.1,93,48,875/- towards the Un Connected Minimum Charges. Aggrieved against this, the appellant approached CGRF Central Region. CGRF had issued order No CGRF-CR/Comp.164/12-13/dated 20.07.2013 partly allowing the claim of the appellant. Still Aggrieved, the appellant filed this petition before this Authority. Demand notice issued for Rs. 1,93,48,875/- towards the UCM charges is quashed. Also directed to refund an amount of Rs. 7,10,000/- towards the security deposit remitted by the appellant. Appeal allowed. Order of CGRF set aside.

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Created 2014-09-11 00:00:00

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