JUDGMENT

THAKKAR, J.:— The main controversy in this group of appeals centres around the question whether, Electricity Duty, on the consumption of electrical energy in Uttar Pradesh is payable by a person who has his own source, of generation and also purchases electrical enrgy from a licensee, or, the Board, or the State Government or the Central Government. The contention has been raised in the context of Sections 3 (1) and 4 (1) of the U.P. Electricity (Duty) Act, 1952. The view is canvassed on behalf of the consumers of electrical energy that while under Section 3 (1) (e) read with Section 4 (1) (c) of the Act Electricity Duty is indubitably leviable and payable on electrical energy consumed by a person from his own source of generation, such duty is not payable by him in case he consumes energy from his own source of generation and also purchases energy from a licensee, the Board, the State Government or the Central Government.

2. This question initially came up before a Division, Bench of the Allahabad High Court in Sherwani Sugar Syndicate Pvt. Ltd v. State of U. P. (C. M. W. P. No 3039 of 1974) The Division Bench by its Judgment dated October 8, 1974, upheld the contention that inasmuch as the petitioner company had its own source of generation of energy and was also purchasing energy from another source indicated in Sections 3 (1) (a) and 3 (1) (b), the petitioner company was not liable for payment of duty on the energy generated from its own source of supply. The State of Uttar Pradesh has called into question the legality and validity of this decision by way of an appeal by certificate of fitness granted by the High Court (C. A. No. 1312 of 1977). Mean while M/s. Deoria Sugar Mills Ltd. also approched the High Court of Allahabad by way of C. M. W. P. No. 9990 of 1975 (reported in 1981 All LJ 657) on an identical plea. The matter came up before another Division Bench of the Allahabad High Court. This Division Bench was of the opinion that the decision in Shervani Syndicates case (supra) required reconsideration. The matter was therefore referred to a Full Bench. The Full Bench was of the opinion that the view taken earlier in Shervanis case was not correct and dismissed the Writ Petition filed by M/s. Deoria Sugar Mills, taking the view that a user of electricity was liable to pay electricity duty on the consumption of energy from his own source of supply regardless of whether or not he also purchased electricity from some other source indicated in Section 3(1) (a) and (b). In view of this decision of the Full Bench, petitions instituted by six other companies raising the identical question were dismissed by the High Court of Allahabad. These companies have approached this Court by way of six separate appeals by special leave granted by this Court.

3. Sections 3 (1) and Section 4 (1) of the Act insofar as material read thus :-

"3. Levy of Electricity Duty (1) Subject to the provisions hereinafter contained, there shall be levied for and paid to the State Government on the energy :

(a) Sold to a consumer by a licensee, the Board, the State Government or the Central Government, or

(b) consumed by a licensee or the Board in or upon premises used for commercial or residential purposes, or in or upon any other premises, except in the construction, maintenance or operation of his or its works; or

(c) consumed by any other person from his own source of generation; and duty (hereinafter referred to as electricity duty) ......

x x x x x x x x,

4. Payment of electricity duty and interest thereupon :-

(1) The electricity duty shall be paid, in such manner and within, such, period as may be prescribed, to the State Government.

(a) where the energy is supplied, or consumed by a licensee,- by the licensee;

(b) where the energy is supplied by the State Government or the Central Government or is supplied or consumed by the Board, - by the appointed authority; and

(c) where the energy is consumed by any other person from his own source of generat