HC explains Tax Rate on electricity purchased from Open Access Source

Southern Ferro Ltd. Vs State of Karnataka (Karnataka High Court)

In respect of electricity supplied to the consumers by a non-licensee through a licensee, the electricity tax payable is on the units of the electricity supplied. Obviously, the unit of electricity supplied is the indicator of the quantum of electricity consumed and since the electricity was procured through Open Access Source, electricity tax can be calculated only on the rates at which the electricity was procured from the Open Access Source.

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