Trilegal secured interim relief from Bombay High Court in ToSE dispute on captive power consumption
The leading full-service Indian law firm, Trilegal successfully represented AB Mauri India Private Limited, Bombay Dyeing and Manufacturing Company Limited, and Ajanta Pharma Limited before the Hon’ble Bombay High Court in separate writ petitions challenging the levy of Tax on Sale of Electricity (“ToSE”) imposed by Maharashtra State Electricity Distribution Company Limited on captive generation and consumption through open access in Maharashtra.
Matter Background
The writ petitions challenged the levy on captive/self-consumption on the ground that it is without authority of law, contrary to Section 3 of the Maharashtra Tax on Sale of Electricity Act, 1963, and violative of Articles 14, 265, and 300A of the Constitution of India.
Interim Relief Granted
The Hon’ble High Court of Bombay granted interim stay, thereby protecting the petitioners from recovery and coercive action under the impugned bills, pending final adjudication on whether ToSE can be levied on captive/open access self-consumption.
Significance of Relief
The interim relief is significant as it protects captive and open access consumers in Maharashtra from coercive recovery of a levy being challenged as lacking legal basis under the Maharashtra Tax on Sale of Electricity Act, 1963.
The Trilegal Dispute Resolution team was led by Vishrov Mukerjee (Partner) and supported by Pratyush Singh (Counsel), Ameya Vikram Mishra (Senior Associate), Arnav Bhansali (Associate), Rudhdi Walawalkar (Associate), and Snehal Upadhyay (Associate).
Conclusion
This order is a significant development for the energy sector in Maharashtra, reinforcing judicial scrutiny over statutory levies imposed on captive and open access electricity consumption, and providing immediate protection from coercive recovery measures pending final adjudication.
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