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K. VINOD CHANDRAN, PARTHA SARTHY
Majhaulia Sugar Industries Pvt. Ltd. – Appellant
Versus
State of Bihar – Respondent
K. Vinod Chandran, CJ.—The petitioners are industries engaged in the manufacture of sugar, who are generating power, in-house for captive consumption.
2. The petitioners are aggrieved with the provision made for levying duty under the Bihar Electricity Duty Act, 1948, on the ‘value of energy’ as defined by an amendment; which amendment has also been made retrospectively with effect from 17.10.2002 and also with the provision for validation; to nullify the effect of the judgment in Bihar Sugarcane Mills Association and Ors. vs. The State of Bihar and Ors; 2009 (4) PLJR 460.
3. The levy, as originally imposed under Section 3 of the Bihar Electricity Duty Act, 1948 was challenged on the ground of legislative incompetence; since it is in the nature of a levy on production clearly coming within Entry 84 of the 7th Schedule of the Constitution of India, and the exemptions to certain establishments, under sub-section (2) of Section 3 making the levy discriminatory. A Division Bench of this Court negatived the challenge based on constitutionality, or the lack of it by a decision reported in Indian Aluminium Co. vs. State of Bihar; 1992 (1) PLJR 55. The petitioners were all paying the duty, f
Amendments to taxation statutes cannot change their fundamental basis without corresponding amendments to the charging provisions, which must be clear and unambiguous to avoid excessive delegation of....
The court upheld the increased electricity duty as legal, distinguishing between tariff and duty, affirming legislative competence for revenue augmentation while rejecting claims of discrimination un....
(1) When a right is created by a statute which itself prescribes remedy or procedure for enforcing right or liability, resort must be had to that particular statutory remedy before invoking discretio....
Even bare consumption of electricity energy by a person who generates the same is permissible to be taxed by reference to Entry 53 of the State List.
The State can withdraw exemptions from electricity duty but must provide reasonable notice to affected captive power generators to allow adjustment.
Municipal Council can revise electricity rates without prior State Government approval if within license limits.
Section 3(B)(b) of Act enables levy of electricity duty upon cancellation of exemption.
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