Disposed¶54

M/S.Jayanthi Textile Products Unit -Ii v. State of Tamilnadu

Madras HC7 Jan 2026WP/613/2025

Case brief

AI extract

What is this about?

E-Tax levy on captive generating plants and open access power (IEX); Tamil Nadu Tax on Consumption or Sale of Electricity Act 2003; G.O.(Ms.) No.121 Energy (B1) dated 23.12.2010; G.O.(Ms.) No.55 Energy (D2) dated 20.10.2021; TANGEDCO; Article 226 certiorarified mandamus; writ petition closed (no costs) in view of quashing of G.O.55 in W.P.Nos.4871 of 2022 batch (order dated 09.06.2025) and interim injunction dated 29.08.2025 in W.A.No.2633 of 2025 restraining collection of electricity tax on captive generation; Madras High Court; single judge P.T. Asha, J.; decided 07.01.2026.

What did the court decide?

No relief on merits; the writ petition was closed with no costs in view of the orders in W.A.No.2633 of 2025, and the connected miscellaneous petitions (WMP.Nos.745, 746 & 748 of 2025) were also closed. ¶54

M/S.Jayanthi Textile Products Unit -Ii Vs State of… — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the impugned Government Orders — G.O.(Ms.) No.121 Energy (B1) Department dated 23.12.2010 and G.O.(Ms.) No.55 Energy (D2) Department dated 20.10.2021 — are arbitrary, illegal and violative of the Tamil Nadu Tax on Consumption or Sale of Electricity Act 2003, and whether the respondents can be restrained from including the E-Tax component on Captive Generating Plants and open access power sources like IEX.

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Ratio / Principle

In light of the orders passed in W.A.No.2633 of 2025 (the quashing of G.O.(Ms.) No.55 in W.P.Nos.4871 of 2022 etc., batch and the Division Bench interim injunction regarding G.O.(Ms.) No.121), no further orders are required to be passed in this writ petition.

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Key takeaways

The writ petition is closed with no costs, and the connected miscellaneous petitions are also closed.ratio¶54

Detailed headnote1 paragraphs

Madras High Court (P.T. Asha, J.; decision dated 07.01.2026) in W.P.No.613 of 2025 (with WMP.Nos.745, 746 & 748 of 2025): Writ petition under Article 226 of the Constitution of India seeking a writ of Certiorarified Mandamus to quash G.O.(Ms.) No.121 Energy (B1) Department dated 23.12.2010 (published in Tamil Nadu Government Gazette No.3 dated 26.01.2011) and G.O.(Ms.) No.55 Energy (D2) Department dated 20.10.2021 as arbitrary, illegal and violative of the Tamil Nadu Tax on Consumption or Sale of Electricity Act 2003, and to forbear the respondents from including the E-Tax component on Captive Generating Plants and open access sources such as IEX. The Court noted that in W.P.Nos.4871 of 2022 etc., batch, this Court by order dated 09.06.2025 quashed G.O.(Ms.) No.55 while upholding G.O.(Ms.) No.121, and that the Hon'ble Division Bench in W.A.No.2633 of 2025, by interim order dated 29.08.2025, restrained TANGEDCO from collecting electricity tax on captive generation and consumption of the appellant therein and protected the electricity connection from disconnection for non-payment until further orders. The learned Government Advocate (R.1 & R.2) and Standing Counsel (R.3 & R.4) raised no serious objection to the petitioner's submission for closure. Holding that, in light of the orders in W.A.No.2633 of 2025, no further orders were required, the Court closed the writ petition with no costs and closed the connected miscellaneous petitions. No substantive ruling was made on the validity of the levy.

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W.P.No.613 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED : 07.01.2026

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CORAM

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THE HONOURABLE Ms. JUSTICE P.T. ASHA

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W.P.No.613 of 2025

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and

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WMP.Nos.745, 746 & 748 of 2025

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M/S.Jayanthi Textile Products Unit -Ii S.F. No.251/1,Rasipalayam Road, Thennampalayam, Arasur Post, Coimbatore-641 407,

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Repd By Its Manager, N.Rajendran

... Petitioner

Vs.

1.State Of Tamilnadu

Rep By The Principal Secretary To Government, Energy Department, Secretariat, Fort St.George, Chennai-600 009

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2.The Chief Electrical Inspector To Government Thiru Vi Ka Industrial Estate,

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Guindy, Chennai-600 032

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3.Tamilnadu Generation And Distribution Corporation Ltd (TANGEDCO), Rep By Its Chairman And Managing Director, 144, Anna Salai, Chennai-600 002

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4.The Superintending Engineer Coimbatore South Electricity Distribution Circle, TANGEDCO, Coimbatore

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...Respondents

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https://www.mhc.tn.gov.in/judis

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W.P.No.613 of 2025

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Prayer:-

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Prayer:- Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of Certiorarified Mandamus, calling for the records of the 1st Respondent comprised in G.O.(Ms.) No. 121 Energy (B1) Department dated 23.12.2010 and published in Tamil Nadu Government Gazette No.3, dated 26.01.2011 and G.O.(Ms.) No.55 Energy (D2) Department dated 20.10.2021 quash the same as arbitrary, illegal and is violative of the provisions of the Tamil Nadu Tax on Consumption or Sale of Electricity Act 2003 and consequently forbear the Respondents, their officers, employees, subordinates, agents, men or any other persons claiming and/or acting under them, from in any manner from including the

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E-Tax component on Captive Generating Plants and other sources of Open Access power like IEX etc.,,

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For Petitioner : Mr.R.S.Pandiyaraj For Respondents : Ms.R.L.Karthika, GA for R.1 & R.2 : Mr.L.Jai Venkatesh, Standing counsel,

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for R.3 and R.4.

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O R D E R

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The writ petition has been filed challenging G.O.(Ms.) No.121 Energy (B1) Department dated 23.12.2010 and G.O.(Ms.) No.55 Energy (D2) Department dated 20.10.2021.

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https://www.mhc.tn.gov.in/judis

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W.P.No.613 of 2025

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The learned counsel appearing for the petitioners submitted that the Government Orders impugned in this writ petition was also challenged in W.P.Nos.4871 of 2022 etc., batch and this Court vide order dated 09.06.2025 quashed the Government Order in G.O.(Ms.) No.55 Energy (D2) Department dated 20.10.2021 and upheld the Government Order in G.O.(Ms.) No.121 Energy (B1) Department dated 23.12.2010. Aggrieved by the upholding of G.O.(Ms.) No.121 one of the petitioners therein filed writ appeal in W.A.No.2633 of 2025 and the Hon’ble Division Bench of this Court on 29.08.2025 passed the following interim order in the said writ appeal:

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“There shall be an order of interim injunction

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restraining the respondent TANGEDCO from collecting electricity tax in respect of captive generation and consumption of the present appellant. It is also made clear

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that due to non~payment of such tax, electricity connection

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of this appellant shall not be disconnected, until further orders.”

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3.The learned counsel appearing for the petitioner further submitted

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that since the Government Order in G.O.(Ms.) No.55 Energy (D2)

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https://www.mhc.tn.gov.in/judis

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W.P.No.613 of 2025

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Department dated 20.10.2021 has been quashed by this Court in W.P.Nos.4871 of 2022 etc., batch and interim injunction has been granted by the Hon’ble Division Bench of this Court in respect of G.O.(Ms.) No.121 Energy (B1) Department dated 23.12.2010 in W.A.No.2633 of 2025, this Court may therefore close this writ petition but may however, observe that the closing of this writ petition is subject to the result of the writ appeal in W.A.No.2633 of 2025.

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4.The learned Government Advocate appearing for the 1^st and the 2^nd respondents and the learned Standing counsel appearing for the respondents 3^rd and 4^th raise no serious objection to this submission.

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Heard the learned counsel on either side.

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6.The Government Orders in G.O.(Ms.) No.121 Energy (B1)

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Department dated 23.12.2010 and G.O.(Ms.) No.55 Energy (D2) Department dated 20.10.2021 are under challenge in this writ petition. The Government Order in G.O.(Ms.) No.55 Energy (D2) Department dated 20.10.2021 has been quashed by this Court in W.P.Nos.4871 of 2022 etc.,

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batch and interim injunction has been granted by the Hon’ble Division Bench of this Court in respect of G.O.(Ms.) No.121 Energy (B1)

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https://www.mhc.tn.gov.in/judis

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W.P.No.613 of 2025

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Department dated 23.12.2010 in W.A.No.2633 of 2025. In the light of the

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orders passed in WA.No.2633 of 2025, no further orders are required to be passed in this Writ Petition.