Authority: Madras High Court
Order Date: 15-06-2026
Case Overview
- Petitioners: M/s United Enterprise (represented by Managing Partner R. Krishnamurthi) filed writ petition (WP No. 21302 of 2026 and WMP Nos. 23047, 23048 of 2026) under Article 226 challenging a show‑cause notice dated 12‑Feb‑2026 issued by the Superintendent of GST, Coimbatore (Audit Circle‑II).
- Respondents: 1) Superintendent of GST, Coimbatore Audit Circle‑II; 2) Principal Commissioner of CGST & Central Excise (Audit), GST Bhawan, Coimbatore; 3) Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) represented by Superintending Engineer; 4) Tamil Nadu Electricity Board Ltd represented by Assistant Engineer (O&M).
- The show‑cause notice alleged that United Enterprise supplied electricity to TANGEDCO. The petitioner contended that its rooftop solar plant generates a small quantity of electricity which is captively consumed, although the power is fed into TANGEDCO’s grid and the petitioner takes credit for an equivalent number of units.
- The petitioner argued that such captive consumption does not constitute a “supply” under the GST Act and therefore the notice is untenable. The court noted that the decisive issue is factual – whether the entire output is captively consumed or any portion is supplied to TANGEDCO.
Final Outcome
- The Court held that no ground exists to interfere with the show‑cause notice at this stage and dismissed the writ petition.
- The petitioner was directed to reply to the notice and produce documents proving that the whole solar output is captively consumed, and may also challenge the alleged clubbing of assessment periods.
- No costs were awarded; the connected miscellaneous petitions were also closed.
Topics: GST, Captive Solar Consumption, Electricity Supply