The Firm successfully obtained an interim stay order in favour of Sapphire Industrial Infrastructure Private Limited before the Madurai Bench of the Hon’ble Madras High Court in a Writ Petition seeking issuance of a writ of Certiorari against a Notice of Assessment issued under the provisions of Tamil Nadu Tax on Consumption or Sale of Electricity Act, 2003.
The team comprising of Divij Kumar (Partner), Varun Tandon (Senior Associate), Shivang Mukherji (Associate) and Rajnandani Singh (Associate) was involved in strategizing, extensive research and drafting of the writ petition, stay application.
The application seeking stay on the operation of Notice of Assessment and consequential demands was argued by Divij Kumar at length and ably assisted by Varun Tandon, who put forth the following arguments:
Notice of Assessment is bad in the eyes of law as the same is premised on the misconceived presumption that the Petitioner being a generating company falls under the definition of licensee.
The Notice of Assessment is against the intent of the central enactment i.e., Electricity Act, 2003, whereby the generating companies have been removed from the ambit of licensing regime.
The Director of Electricity Tax failed to appreciate the fact that the electricity is being consumed within the Special Economic Zone and lies in the teeth of the specific exemption granted to entities situated within SEZ under the provisions of Tamil Nadu Special Economic Zone (Special Provisions) Act, 2005.
The Hon’ble Bench going through the merits of the case and arguments put forward by the team, was of the view that the issue prima facie appears to be justified and requires detailed examination. Accordingly, the Hon’ble Court was pleased to grant a stay on the operation of the Notice of Assessment and raising of further demands under the local Act qua establishment situated within SEZ.
Powered by WPeMatico