Madras High Court rejects Infosys's plea against Rs 6.37 crore electricity bill
The judge also held the adoption of commercial tariff to the company and wrote that if non-adoption of the same has resulted in loss of revenue to the extent of Rs.4.50 crore, read the judgment.
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CHENNAI: The Madras High Court refused the plea of Infosys, a largest software developer company in India, seeking to quash the order of Tangedco demanding to pay Rs.6.73 crore billed under commercial tariff as shortfall in electricity charges.
On perusal of the audit report, it reveals that Infosys being engaged in both software development and information technology enabled service (ITES), within the same premises, and it is appropriate to adopt higher tariff which is the norms, in the case of services engaged in two types of activities, within the same premises, wrote Justice G K Ilanthiraiyan while dismissing the petition of the software company seeking subsidised tariff bill.
The judge also held the adoption of commercial tariff to the company and wrote that if non-adoption of the same has resulted in loss of revenue to the extent of Rs.4.50 crore, read the judgment.
Senior counsel P. Wilson submitted that Infosys though operated ITES business, however, have commercial activities with trade names like food courts, gymnasium, employee shopping outlets, banks, ATM centres, etc.
Since Tamil Nadu Electricity Regulatory Commission has classified this as commercial activity, no concession can be given, the counsel added.
On July, 2012 the Tangedco issued notice to Infosys at Mahindra World City, Chengalpattu stating that there was short assessment of current consumption bill as it was made under industrial tariff despite of commercial tariff. Further the Tangedco re-assesed the curent bill under commercial tariff since, Infosys, indulging in various commercial services to its employees and demanded to pay Rs.6.73 crore as short fall in electricity bill.
In response Infosys, submitted that it was engaged only in software development and that the industrial tariff was correctly applied. After 8 years, in 2020 the Tangedco sent showcause notice to Infosys, demanding to pay the difference amount with high tension bill.
Aggrieved by this Infosys filed the petition seeking to quash the order demanding high tension commercial tariff.