Disposed

Sri Balaji Textiles, v. the State of Tamil Nadu

Madras HC9 Feb 2022WP/10177/2012

Case brief

AI extract

What is this about?

The High Court of Judicature at Madras disposed of writ petitions challenging the constitutionality of the Tamil Nadu Tax on Consumption of Sale of Electricity Amendment Act, 2007. The court ruled that the matter must remain pending subject to the outcome of special leave petitions before the Supreme Court.

What did the court decide?

Petitions disposed of subject to the outcome of the Special Leave Petition pending before the Supreme Court; interim order of the Supreme Court continues to operate.

Sri Balaji Textiles, Vs the State of Tamil Nadu — Writ and Judicial Review | Madras HC (2022)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 09.02.2022

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CORAM

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THE HONOURABLE MR.JUSTICE M.GOVINDARAJ

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W.P.NOS.10177 AND 10178 OF 2012 & M.P.NOS.1,1 OF 2012

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Sri Balaji Textiles, S.F.No.649/2, Annur Road, Padhuvampatti Post, Coimbatore – 641 659, Rep. by its Authorised Signatory, K.R.Gandhi.

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... Petitioner in W.P.No.10177 of 2012

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Global Powertech Equipments Ltd., Ayalvadi Village, Vadavasi – 604 305, Rep. by its Authorised Signatory, A.Ponnambalam. ... Petitioner in W.P.No.10178 of 2012

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.Vs.

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The State of Tamil Nadu, Rep. by its Secretary to Government, Energy Department, Chennai - 600 009.

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The Tamil Nadu Electricity Board, Rep. by its Chairman, 800, Anna Salai, Chennai - 600 002.

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The Director of Electricity Tax, O/o of the Chief Electrical Inspector to Government,

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Thiru-Vi-Ka Industrial Estate, Chennai – 32.

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... Respondents

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https://hcservices.ecourts.gov.in/hcservices/

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PRAYER IN W.P.NOS.10177 AND 10178 OF 2012:-

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These Writ Petitions have been filed under Article 226 of the Constitution of India praying to issue a Writ of Declaration declaring that the Provisions of the Tamil Nadu Tax on consumption of Sale of Electricity Amendment Act, 2007 being Tamil Nadu Act 38 of 2007 as unconstitutional, beyond the legislative competence, and violative of Article 14 of the Constitution of India.

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For Petitioners : Mr.R.S.Pandiyaraj

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For Respondents : Ms.N.Senthil Selvi Government Advocate For R1

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Mr.L.Raj Venkatesh Standing Counsel For R2 and 3

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C O M M O N O R D E R

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The petitioners have filed a writ of declaration to declare the provisions of Tamil Nadu Tax on Consumption of Sale of Electricity Amendment Act, 2007 being Tamil Nadu Act 38 of 2007 as unconstitutional.

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It is submitted by the learned counsel for the petitioners that Tamil Nadu Act 38 of 2007 was struck down by the Hon'ble Supreme Court and the respondent passed an Validation Act 12 of 2007 and challenge to that Act is still pending before the Hon'ble Supreme Court. During the pendency of the Special Leave Petition the Hon'ble Supreme Court in M/s.Sri Krishna Alloys& etc Vs. Union of India & Ors, etc., Special Leave to Appeal (Civil) Nos. 24685-24719 of 2012 dated 31.08.2012 has granted interim order on the following lines:

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“ Permission to file SLP in SLP(C) .. Cc 15217 of 2012 is granted.

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Issue notice returnable in four weeks.

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In the meantime, the respondents are restrained from taking any coercive steps for disconnecting supply of electricity to petitioner's premises, subject to the petitioner's paying all the charges/dues except the tax calculated on the basis of maximum demand”

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https://hcservices.ecourts.gov.in/hcservices/

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Further the Hon'ble Division Bench of this Court in the case of M/s.Sri Krishna Alloys & other vs. Tamil Nadu Steel ReRollers Council & Ors by judgment dated 02.06.2015 disposed of the Writ Appeal and Writ Petitions pending before it subject to the outcome of the Sick Leave Appeals pending before the Hon'ble Supreme Court. The relevant portions or the judgment is extracted hereunder:

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“ In view of the issue raised in the present writ appeal/writ petition being settled against the appellant/petitioner in terms of the Division Bench judgment in W.P.Nos.159 of 2008, etc. (batch), decided on 15.06.2012 and thereafter, the Hon'ble Supreme Court having entertained the Special Leave Appeals against the said judgment bearing Special Leave Appeal (Civil) No15217 of 2012 dated 31.08.2012, with an interim direction restraining the respondents therein from taking any coercive steps for disconnecting the supply of electricity to the premises of the petitioner therein, subject to that petitioner paying all the charges/dues except tax calculated on the basis of maximum demand, it is agreed that the present writ appeal and writ petition be disposed of in terms aforesaid, with the agreement that the ultimate fate of the matter before the Hon'ble Supreme Court would also govern the present appellant and writ petitioner and the same interim order would continue to enure for the benefit of the writ appellant and writ petitioner during the pendency of the Special Leave Appeals.

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2.Writ Appeal and Writ Petition, accordingly, stand disposed of. No costs. Consequently, W.A.M.P.No.969 of 2004 stands closed.”

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In a similar circumstances, my Brother Justice S.M.Subramaniam has followed the order passed in W.P.No.19104 of 2020 dated 17.02.2021 and disposed of the Writ Petitions No.13694 to 13696 of 2016 by order dated 29.11.2021. The relevant portion is extracted hereunder:

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It is brought to the notice of this Court that a batch of Special Leave petitions are pending before the Hon-ble Supreme Court and the Hon-ble Supreme Court has passed an interim order dated 31.08.2012, restraining the respondents from taking any coercive steps for disconnecting supply of electricity subject to the petitioners paying all the charges/dues except the tax calculated on the

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https://hcservices.ecourts.gov.in/hcservices/

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basis of maximum demand.

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This Court had an occasion to deal with a similar issue in WP No.19104 of 2020 and final orders were passed on 17.02.2021. The relevant portions in the order are extracted hereunder :~

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Mr.N.Damodaran, learned Standing Counsel, who took notice on behalf of the respondents would submit that by following the orders of the Hon-ble Supreme Court, a Division Bench of this Court has disposed of issue on the following terms:~

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In view of the issue raised in the present writ appeal/writ petition being settled against the appellant/petitioner in terms of the Division Bench judgment in W.P.Nos.159 of 2008 etc.(Batch) decided on 15.06.2012 and thereafter, the Hon-ble Supreme Court having entertained the Special Leave Appeals against the said judgment bearing Special Leave Appeal (Civil) Nos.24685 to 24719 of 2012 dated 31.08.2012, with an interim direction restraining the respondent from taking any coercive steps for disconnecting the supply of electricity to the premises of the petitioner therein, subject to that petitioner paying all the charges/dues except tax calculated on the basis of maximum demand, it is agreed that the present writ appeal and writ petition be disposed of in terms aforesaid, with the agreement that the ultimate fate of the matter before the Hon-ble Supreme Court would also govern the present appellant and the writ petitioner and the same interim order would continue to enure for the benefit of the writ appeal and writ petitioner during the pendency of the Special Leave Appeals.

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Writ Appeal and Writ Petition, accordingly, stand disposed of. No costs. Consequently, W.A.M.P.No.969 of 2004 stands closed.

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On the issue of collecting tax on maximum demand charges from the petitioner in the High Tension Service Connection, the Hon-ble Supreme Court and a Division Bench of this Court has already issued a direction, restraining the respondents from taking any coercive steps for disconnecting supply of electricity to the premises of the petitioner subject to the petitioner paying all the charges / dues except tax calculated on the basis of maximum demand.”

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https://hcservices.ecourts.gov.in/hcservices/

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The above order will also enure to the benefit of the petitioners. In view of the same, all these present writ petitions are disposed of in terms of the interim order passed by the Hon-ble Supreme Court and the subsequent Hon'ble Division Bench order passed in W.A No.547 of 2004 dated 02.06.2015. However, there shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.”

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In view of the above orders, the present writ petitions are also disposed of, subject to the outcome of the Special Leave Petition pending before the Hon'ble Supreme Court. The Interim order granted by the Hon'ble Supreme Court in C.C.No.15217 of 2012 dated 31.08.2012 shall continue to operate in favour of the petitioner. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.

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Sd/Assistant Registrar

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//True Copy//

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Sub Assistant Registrar

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The Secretary to Government, The State of Tamil Nadu, Energy Department, Chennai - 600 009.

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The Chairman, The Tamil Nadu Electricity Board, 800, Anna Salai, Chennai - 600 002.

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The Director of Electricity Tax, O/o of the Chief Electrical Inspector to Government, Thiru-Vi-Ka Industrial Estate, Chennai – 32.

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+1cc to Mr.R.S.Pandiyaraj, Advocate, S.R.No.9139 +1cc to the Government Pleader, S.R.No.8663

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W.P.NOS.10177 AND 10178 OF 2012 & M.P.NOS.1,1 OF 2012 PL(CO) PBS/04/03/2022

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https://hcservices.ecourts.gov.in/hcservices/

Sri Balaji Textiles, v. the State of Tamil Nadu

Case brief

What is this about?

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Sri Balaji Textiles, v. the State of Tamil Nadu

Case brief

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