Madras High Court
The Chairman vs Sri Visakaa Fabrics Private ... on 14 December, 2022
W.A(MD)No.636 of 2012
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 14.12.2022
CORAM:
THE HONOURABLE DR.JUSTICE G.JAYACHANDRAN
AND
THE HON'BLE MR JUSTICE SUNDER MOHAN
W.A(MD)No.636 of 2012
and
M.P(MD)No.1 of 2012
1.The Chairman,
Tamilnadu Electricity Board,
K.R.R.Maligai,
Chennai-600 001.
2.The Superintending Engineer,
Tamilnadu Electricity Board,
Ramamoorthy Road,
Virudhunagar. ... Appellants/Respondents 2 & 3
.Vs.
1.Sri Visakaa Fabrics Private Limited,
Rep. by its Managing Director,
Thiru.T.R.N.Sankaralingam,
No.120, Madurai Road,
Virudhunagar. ... 1st Respondent/Petitioner
2.State of Tamilnadu,
Rep. by its Secretary to Government,
Energy Department,
Fort St. George,
Chennai. ... 2nd Respondent/1st Respondent
1/6
https://www.mhc.tn.gov.in/judis
W.A(MD)No.636 of 2012
PRAYER: Writ Appeal filed under Clause 15 of Letters Patent Act, to set aside
the order passed in W.P(MD)No.8961 of 2007, dated 12.08.2011 and to allow the
writ appeal.
For Appellants : Mr.S.Deenadhayalan
Standing Counsel
For R1 : No appearance
For R2 : D.Sasikumar
Additional Government Pleader
JUDGMENT
DR.G.JAYACHANDRAN,J.
AND
SUNDER MOHAN,J.
This Writ Appeal is preferred by the Chairman of Tamil Nadu Electricity
Board and another being aggrieved by the order of the learned Single Judge, who
has issued a Mandamus directing the second appellant not to charge Electricity
Tax at the rate of 5% on Maximum Demand Charges from the bills starting from
the Month of October 2007 onwards.
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W.A(MD)No.636 of 2012
2. The learned Single Judge has allowed the Writ Petition holding that the
Demand of Electricity Tax on Maximum Demand charges is not sustainable in
view of authoritative pronouncement of the Hon'ble Supreme Court in
M/s.Northern India Iron and Steel Co.
3. However, the learned counsel for the appellants would submit that the
Division Bench of this Court had taken contrary view and has disposed of the
batch of writ petitions challenging the Validation Act imposing Electricity Tax on
Maximum Demand Charges. The said batch of writ petitions were disposed of
on 15.06.2012 has upheld the Validation Act enabling the Electricity Board to
collect 5% Tax on Maximum Demand Charges. Learned counsel for the appellant
would fairly state that the Judgment of the Hon'ble Division Bench is now sub
judice before the Hon'ble Supreme Court, wherein, some of the consumer have
approached the Supreme Court and protective interim order has been passed by
the Hon'ble Supreme Court vide order, dated 31.08.2012 and the same is pending.
4. A perusal of the protective order circulated to this Court indicates that
the appellants Electricity Board are restrained from taking any coercive steps for
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W.A(MD)No.636 of 2012
disconnecting supply of electricity to the first respondent herein/writ petitioner
premises, subject to the first respondent/writ petitioner paying all the
charges/dues except the tax calculated on the basis of maximum demand.
5. Since the tax is collected based on the Rule, now the Rule is put to test
before the Hon'ble Supreme Court, it is suffice to dispose of the Writ Appeal with
the following direction:-
“The appellants herein shall take appropriate action for collecting
Electricity Tax from the first respondent/writ petitioner after the disposal of the
batch of writ petitions pending before the Hon'ble Supreme Court and the said
action shall be in accordance with the decision of the Hon'ble Supreme Court
regarding the right to collect the Electricity Charges.”
6. From the facts it is clear that the order of the learned Single Judge,
which is impugned in the Writ Appeal, has already been set aside and superseded
by the subsequent judgment of the Hon'ble Division Bench in W.P.No.159 of
2008 etc., batch vide order, dated 15.06.2012. Therefore, it is open to the parties
to act upon as per the decision of the Hon'ble Supreme Court in the Special Leave
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W.A(MD)No.636 of 2012
Appeal (Civil) Nos.24685-24719/2012 which is now pending.
7. Accordingly, the Writ Appeal stands disposed of. No costs.
Consequently, connected miscellaneous petition is closed.
[G.J.,J.] [S.M.,J.]
14.12.2022
Index : Yes / No
Internet : Yes / No
am
To
The Secretary to Government,
Energy Department,
Fort St. George,
Chennai.
https://www.mhc.tn.gov.in/judis
W.A(MD)No.636 of 2012
DR.G.JAYACHANDRAN, J.
and
SUNDER MOHAN,J.
am
JUDGMENT MADE IN
W.A(MD)No.636 of 2012
14.12.2022
https://www.mhc.tn.gov.in/judis
