CHENNAI: The Madras High Court has extended the interim injunction on a directive by service tax authorities to Tidel Park Ltd. to pay Rs.1.64 crore (including the cess) in service tax for the period from June 2007 to January 2008. The tax was for the electricity charges the company collected from its clients and paid to the Tamil Nadu Electricity Board.
In his petition, P. Shanmugasundaram, managing director, said the company was a joint venture of government-owned companies. The charges were calculated on the basis of the units recorded by the sub-meter installed on the premises of the clients. By paying the tariff to the Board, the petitioner had acted only as an agent of its clients.