TNEB can’t levy surcharge on belated payment of electricity

 The Tamil Nadu Electricity Board has no authority to levy surcharge on belated payment of electricity tax, the Madras High Court has ruled. Allowing a writ petition filed before the Madurai Bench, Justice R.S. Ramanathan held that the TNEB was entitled to collect Belated Payment Surcharge (BPSC) only on delayed payment of electricity consumption charges. The Judge said under the Tamil Nadu Electricity (Taxation on Consumption) Act, 1962, the TNEB did not have much role to play in taxation as it only acted as a collection agent for the tax levied and received by the government. Section 8 of the Act stated that only the government could levy interest, not exceeding 12 per cent per annum, on any amount due on account of electricity tax, and recover the total sum either through a civil court or as arrears on land revenue. In this case, an electrochemical unit in Sivakasi had challenged the levy of BPSC at the rate of 18 per cent for delayed payment of electricity tax. It stated that it had initially challenged the levy of electricity tax. However, its writ petition and the consequent writ appeal were dismissed by the High Court in 2006. Subsequently, a superintending engineer of the Virudhunagar distribution circle asked the company to pay total dues of Rs.23.02 lakh, including consumption charges and electricity tax. The money was paid in 12 monthly instalments. After making the payment, the TNEB further demanded Rs.2.34 lakh towards BPSC for non-payment of tax on time and hence the present petition. Demand notice quashed The Judge quashed the demand notice for want of jurisdiction.

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