An appeal under Section 127 lies only against a final assessment under Section 126.

The petitioner, a domestic electricity consumer, was found during an inspection on 19 June 2013 to have a connected load of 8 kW against a sanctioned load of 3 kW.

The premises were treated as falling under the Non-Domestic Service category, and a provisional assessment of ₹46,166 was raised under Section 126 of the Electricity Act, 2003.

The petitioner objected, but the record did not show that a final assessment order was passed after considering the objection.

A later inspection in 2017 found a connected load of 5.305 kW and domestic use; the Consumer Grievances Redressal Forum directed billing under the Domestic category from that inspection date.

The petitioner’s appeal under Section 127 was dismissed, and he later paid ₹3,89,920 under protest and challenged the assessment and consequential billing.

He sought, among other reliefs, revision of the bills and removal of delayed payment surcharge.

Whether a final assessment order under Section 126 of the Electricity Act, 2003, had been passed after the petitioner objected to the provisional assessment.

Whether the appeal under Section 127 and the appellate order could be sustained in the absence of a final assessment order under Section 126.

Section 126 of the Electricity Act, 2003 provides for assessment of unauthorised use of electricity, including a final assessment after consideration of the consumer’s objections.

Under Section 127, an appeal lies only against a final assessment order under Section 126; a provisional assessment or notice is not appealable.

In Southern Electricity Supply Co. of Orissa Ltd. v. Sri Seetaram Rice Mill, (2012) 2 SCC 108, the Supreme Court held that only a final order under Section 126(3) is appealable under Section 127 and that, where the statutory assessment process has not been completed, the matter should be dealt with by the competent assessing authority in accordance with law.

The record showed that the petitioner had objected to the provisional assessment of ₹46,166, but did not show that the assessing officer considered the objection, afforded a hearing, or passed a final order.

Applying Southern Electricity Supply Co., the Court held that the Section 127 appeal could not properly proceed without an appealable final assessment order.

The later inspection and its findings could not replace the statutory requirement to determine the objection to the provisional assessment through a final order.

The Court did not determine the merits of the alleged unauthorised use, the assessment amount, or the petitioner’s other billing and surcharge claims.

The writ petition was allowed, without any opinion on the merits of the alleged unauthorised use or the assessment amount.