The Central Electricity Regulatory Commission (CERC) said the petition filed by NLC India Limited (NLCIL), a central public sector undertaking seeking State power utilities including those of Tamil Nadu, to pay the their tax liabilities (pertaining to income tax paid by NLC under the Vivad Se Vishwas Scheme) is not maintainable.
In an order dated July 10, CERC cited various cases on the issue pending before High Courts and granted NLCIL the liberty to approach commission after the cases are disposed of by the courts.
In its petition, NLCIL said it had opted for the Centre’s Vivad Se Vishwas Scheme, which provided for ending pending income tax litigations. Opting for the scheme resulted in the payment of tax to the tune of ₹732 crore, which was less than the total demand of around ₹1,082 crore, it said.
The various cases that were decided in the scheme pertain to the period from 2000-2001 to 2016-17. Based on the full and final settlement form issued by the Income Tax (I-T) Department, the amount to be recovered from the respective State power distribution companies (discoms) was worked out, NLCIL said.
On December 27, NLCIL raised a total bill of ₹386.51 crore (against the payment of ₹732 crore) and uploaded it on the PRAAPTI (Payment Ratification And Analysis in Power Procurement for Bringing Transparency in Invoicing of Generators) portal, which lists the payment dues from State discoms to power generators.
The amount claimed by the NLCIL against the Tamilnadu Generation and Distribution Corporation Limited (Tangedco) was ₹184.71 crore.
Tangedco returned the invoices stating that the claim is not supported by the CERC’s order and obtained an interim order from the Madras High Court, which directed the Ministry of Power not to suspend grid connectivity till disposal of the said writ petition. Tangedco also said NLCIL’s petition should not be entertained since some of the High Courts have granted interim stay on the bills raised by NLCIL.
While the High Courts of Madras, Andhra Pradesh, and Telangana have passed interim orders directing not to suspend the grid connectivity of the discoms pending consideration of the matters, the Kerala High Court has passed an interim order staying the recovery of the amounts on the basis of the debit notes, CERC noted.
