Court dismisses plea against electricity tax

Jun 22, 2012 |

chennai

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The Madras high court has dismissed a batch of more than 200 petitions challenging the levy of electricity tax on maximum demand charges, peak hour charges and power factor charges from poeple involved in the manufacture of paper, textiles, chemicals and sugar by installation of captive generator plants for consumption of self-generated electricity.

A division bench of Justices D. Murugesan and P.P.S. Janarthana Raja dismissed the petitions, which also sought to declare certain provisions of the Tamil Nadu Tax on Consumption or Sale of Electricity (Amendment) Act, 2007, as unconstitutional.

The bench said the petitioners were maximum consumer of HT electricity and the grant of permanent exemption might severely affect the government exchequer.

“In our opinion, the grant of exemption is entirely the discretion of the government. Under the Act, the intention of the legislature has been specifically expressed. It was only to rectify the defect that requires no interference,” said the bench.

Tax on consumption of electricity from self generating plants was exempted under the 2003 Act.

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