SC notice to MP govt on energy cess issue
The Supreme Court has sought a response from the Madhya Pradesh government on petitions challenging imposition of energy development cess on generation of electricity by captive power producers (CPPs).
By PTI |
NEW DELHI: The Supreme Court has sought a response from the Madhya Pradesh government on petitions challenging imposition of energy development cess on generation of electricity by captive power producers (CPPs).
A bench headed by Justice S H Kapadia issued notice to the state government on petitions filed by Grasim Industries and Prism Cements challenging the Madhya Pradesh High Court's judgement that upheld the validity of Madhya Pradesh Upkar (Sanshodhan) Adhiniyam 2001.
Similar petitions were earlier filed by CPPs against imposition of similar cess by the Chhattisgarh government.
The companies also challenged the validity of the Amendment Act of 2004 which imposed cess on sale, supply or consumption of electrical energy by CPPs.
According to them, the rationale given by the state government was that what had been collected under the 2001 Act was electricity generated. This, by virtue of Section 3(1) of the Validation Act 2004, would now amount to electrical energy sold or consumed.
"The electrical energy produced on one hand and sold or consumed on the other are treated as one and the same was impermissible as some amount of electrical energy is lost in transmission and distribution," the petition stated.
A bench headed by Justice S H Kapadia issued notice to the state government on petitions filed by Grasim Industries and Prism Cements challenging the Madhya Pradesh High Court's judgement that upheld the validity of Madhya Pradesh Upkar (Sanshodhan) Adhiniyam 2001.
Similar petitions were earlier filed by CPPs against imposition of similar cess by the Chhattisgarh government.
The companies also challenged the validity of the Amendment Act of 2004 which imposed cess on sale, supply or consumption of electrical energy by CPPs.
According to them, the rationale given by the state government was that what had been collected under the 2001 Act was electricity generated. This, by virtue of Section 3(1) of the Validation Act 2004, would now amount to electrical energy sold or consumed.
"The electrical energy produced on one hand and sold or consumed on the other are treated as one and the same was impermissible as some amount of electrical energy is lost in transmission and distribution," the petition stated.
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Counsels R Nariman and Gaurav Goel, appearing for the petitioners, contended that the Validating Act should be struck down as it was beyond the jurisdiction of the state legislature.Download
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