After a detailed hearing, on 30.03.2026, the Hon’ble Bombay High Court granted interim protection to JSW Steel Group Companies against recovery of Tax on Sale of Electricity on captive consumption of power.
The interim protection was granted basis the following submissions on behalf of JSW:
- There is no element of ‘sale of electricity’ in case of power captively consumed. Hence, levy of tax on sale of electricity on captive consumption is ultra-vires provisions of the Maharashtra Tax on Sale of Electricity Act, 1963.
- ‘Consumer’ defined under Section 2(15) of the Electricity Act and ‘captive users’ are different and distinct class by themselves and captive consumption is deemed self-use and does not involve an element of sale.
- Levy of tax on sale of electricity on captive consumption is contrary to MSEDCL’s own admissions in an earlier round of litigation between the same parties.
While the Hon’ble Bombay High Court permitted MSEDCL to reflect the disputed tax amount in its future bills, it categorically restrained MSEDCL (on account of an undertaking given by State of Maharashtra) from recovering the same from the Petitioners or take any coercive action against them for non‑payment of tax on sale of electricity, without leave of the Court.
Hon’ble Bombay High Court’s immediate intervention provides a major relief to JSW Steel Group Companies.
The JSA Disputes Team represented all four entities of JSW Steel Group Companies and was led by Abhishek Munot, Lead Partner, along with Kunal Kaul, Partner, Malcolm Desai, Partner and Reet Nagpal, Associate.
Abhishek is a part of Disputes group of JSA and anchors the Regulatory Practice of JSA in Western India. Abhishek handles sector specific commercial litigation, arbitration constitutional & administrative law litigation and regulatory proceedings before statutory authorities, tribunals and courts.