Whether Hindalco and Renusagar should be treated as one concern and the consumption of energy by Hindalco must be regarded as consumption by Hindalco from its own source of generation?
The principle of lifting the corporate veil was applied and it was examined if the person generating and consuming energy were the same and the corporate veil should be lifted or not. In this case, Hindalco and Renusagar were inextricably linked up together. Renusagar had, in reality, no separate and independent existence apart from and independent of Hindalco. Consumption of energy of Hindalco was consumption of Hindalco from its own source of generation.