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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.Anand Venkatesh
Hi-Tech Carbon (a unit of Aditya Birla Nuvo Ltd.) – Appellant
Versus
State of Tamil Nadu, rep.by the Secretary to Government, Energy Department – Respondent
ORDER :
N.Anand Venkatesh, J.
In this writ petition, the petitioner assails the demand notice dated 23.8.2012 issued by the fourth respondent and further seeks to forbear the respondents from levying and/or collecting the electricity tax from them for their captive consumption of electricity as per Rule 3 of the ELECTRICITY RULES , 2005 (for short, the Central Rules).
2. Heard the learned Senior Counsel appearing on behalf of the petitioner and the learned Additional Advocate General assisted by the learned Government Advocate appearing for the respondents.
3. The case of the petitioner is as follows :
(i) They are engaged in the manufacture of carbon black. The steam generated from a specially designed boiler is used for generation of power through turbo generator sets. The electricity generated by the petitioner out of the turbo generator sets is metered in units. A part of the power generated from such captive power plant is used by the petitioner for their own purposes. That apart, the petitioner also consumes a part of the generated electricity for the operation of the captive generating plant. The surplus power is sold to the Tamil Nadu Electricity Board (now the Tamil Nadu Gener
The court held that the authority cannot levy electricity tax based on Central Rules, as the State Act does not require such captive consumption, affirming state legislative power over taxation.
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