State Cannot Tax Inter-State Electricity Transactions Through Open Access, Power Limited by Article 269A and Section 3(1)(c)

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....HC determined the power of Tamil Nadu to levy electricity tax through inter-state open access systems. The court held that for inter-state electricity transactions, the state lacks taxation authority under Article 269A. Section 3(1)(c) of the Act cannot be interpreted to impose tax on inter-state power purchases. However, tax remains valid for captive generating plants consuming electricity for own use. The court quashed G.O.Ms.No.55 regarding open access taxation while upholding G.O.Ms.No.121, which empowers TANGEDCO to collect tax on captive generation. The ruling clarifies the state's limited taxation powers in electricity transactions, distinguishing between inter-state and intra-state consumption.....