Notification Regarding Exemption in Respect of the Electricity Tax Payable under the Tamil Nadu Tax on Consumption or Sale of Electricity Act
The Government of Tamil Nadu, Energy (B1) Department, issued G.O. Ms. No. 79, Energy (B1), dated 14th September 2009, granting an electricity tax exemption to high tension consumers using electricity from their own captive generating plants, namely gensets. The exemption covers consumption for their own use from 1st April 2009 to 30th September 2009.
What the notification does
The Government of Tamil Nadu notification exempts specified high tension consumers from electricity tax payable under the Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003. The Governor of Tamil Nadu granted the exemption using the power conferred by sub-section (2) of Section 14 of that Act.
The exemption applies for a further period from 1st April 2009 to 30th September 2009. The notification does not provide an exemption for any period outside those dates.
Who is covered
G.O. Ms. No. 79, Energy (B1), dated 14th September 2009, identifies the eligible consumers and electricity use as follows:
- The consumer must be a high tension consumer.
- The electricity must be generated through the consumer's captive generating plant.
- The captive generating plant covered by the notification is a genset.
- The electricity must be consumed for the consumer's own use.
- The exemption concerns electricity tax payable under the Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003.
The notification does not extend its wording to electricity purchased from another source or electricity generated for sale to others.
Relevance to property owners and buyers
The Government of Tamil Nadu exemption may be relevant to an owner or occupier of industrial, commercial or other property that was a high tension consumer and used a captive genset during the specified period. Its relevance depends on whether the electricity was generated and consumed for the consumer's own use between 1st April 2009 and 30th September 2009.
A property buyer reviewing historical electricity tax records may use the notification to understand why electricity tax was not payable on qualifying captive genset consumption during that period. The text does not state an exemption rate, application process, documentation requirement or treatment of other types of generating plants.
Publication details
The notification was published in the Tamil Nadu Government Gazette Extraordinary, No. 242, Part II, Section 2, on 14th September 2009. It carries notification number No. II(2)/EGY/467(d)/2009 and is signed by P.W.C. Davidar, Secretary to Government.
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Common questions
Does the exemption apply to every electricity consumer in Tamil Nadu?
No. It applies to high tension consumers using electricity from their own captive generating plants, namely gensets, for their own use.
What period does the electricity tax exemption cover?
The exemption covers the period from 1st April 2009 to 30th September 2009.
Does the notification cover electricity generated for sale?
The notification covers consumption for the high tension consumer's own use. It does not state that electricity generated for sale is exempt.
Which law provides the basis for the exemption?
The exemption was made under sub-section (2) of Section 14 of the Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003.
