The Madras High Court has dismissed a plea by Infosys, India’s largest software development company, seeking to quash a Tangedco order that demanded payment of Rs. 6.73 crore billed under commercial tariff as a shortfall in electricity charges.Justice G K Ilanthiraiyan, while rejecting the petition, pointed out that Infosys engages in both software development and information technology enabled services (ITES) within the same premises. “It is appropriate to adopt a higher tariff in the case of services engaged in two types of activities within the same premises,” Justice Ilanthiraiyan noted, referencing the audit report.
The judge further emphasized that the adoption of a commercial tariff is justified, especially when failure to do so would result in significant revenue loss. “If the non-adoption of the same has resulted in a loss of revenue to the extent of Rs. 4.50 crore, it is essential to uphold the commercial tariff,” Justice Ilanthiraiyan wrote in the judgment.
Infosys had argued for a subsidized tariff bill, but the court maintained that the higher tariff was applicable and necessary given the mixed nature of activities conducted at their premises. The court’s decision reinforces the importance of adhering to the established norms for tariff categorization in cases involving multiple types of activities under a single roof.
