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Issues involved: Challenge to levy of Electricity Tax and Belated Payment Surcharge (B.P.S.C.)
Summary: The petitioner, a High Tension Consumer, challenged the levy of Electricity Tax under the Tamil Nadu Electricity (Taxation on Consumption) Act 1962. The respondent demanded a sum of Rs. 23,02,065/- including arrears of Electricity Tax. The petitioner paid the amount in 12 monthly installments. Subsequently, the respondent raised a bill for belated payment surcharge (B.P.S.C.) of Rs. 2,34,308/- on the Electricity Tax for the period from June 2002 to August 2004. The petitioner filed a writ petition seeking to quash this surcharge, citing Rule 4(xi) of the Tamil Nadu Electricity Supply Code 2004. The respondent argued that the surcharge was justified as the petitioner failed to pay the dues on time, and the Tamil Nadu Electricity Supply Code did not prohibit levying B.P.S.C. before September 2004. The petitioner relied on a previous judgment to support their claim that the surcharge should not be collected due to the pendency of the writ petition and appeal challenging the levy of Electricity Tax. The court considered the arguments of both parties and concluded that while the respondent was entitled to collect surcharge on consumption charges, they had no right to levy surcharge on Electricity Tax. The court highlighted the legal provisions regarding the collection of Electricity Tax and surcharge, emphasizing that the licensee (respondent) acts as a collecting agent for the Government, and only the Government can impose interest on belated payment of Electricity Tax. Therefore, the court allowed the writ petition, setting aside the demand for belated payment surcharge on Electricity Tax. The respondent was not entitled to levy any surcharge on the Electricity Tax amount. This judgment clarifies the distinction between surcharge on consumption charges and Electricity Tax, emphasizing the legal obligations of the licensee in collecting and remitting Electricity Tax to the Government.
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