Industry & Economy
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Power
Plea to scrap levy on captive power
Our Correspondent
MADURAI, June 19
THE Madurai District Tiny and Small Scale Industries Association (Maditssia) has urged the Chief Minister of Tamil Nadu to intervene and advise the TNEB to withdraw the levy of sales tax of 10 paise per unit for the captive generation of power by using generators. Mr K. Ramachandran, association president, in a statement here has said that during the Budget session for 2003-04, the State Finance Minister had said that sales tax was applicable only when the generator was sold to a third party. Now, all of a sudden, TNEB has levied sales tax even for own consumption, leading one to wonder how a captive consumption can be considered as a sale. It is highly objectionable to levy sales tax for an activity where there is no sale involved. Mr Ramachandran has further said that fixing up a separate meter for captive consumption will involved a huge outlay of investment and open up a pandora's box. Many establishments, which do not have enough space, operated their generators from a corner of the building where fixing up a meter will be difficult.
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