ANDHRA PRADESH ELECTRICITY DUTY ACT, 1939
(1) This Act may be called the Andhra Pradesh Electricity Duty Act, 1939.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
In this Act unless there is anything repugnant in the subject or context
(a) energy means electrical energy;
(b) Licensee means
(i) any person including a company or a local authority licensed under Part II of the In- dian Electricity Act, 1910 to supply energy, or any person including a company or a local authority who has obtained the sanction of the State Government under Section 28 of that Act to supply energy;
(ii) the Andhra Pradesh State Electricity Board constituted under Section 5 of the Electri- city (Supply) Act, 1948;
(iii) the National Thermal Power Corporation or any other corporation engaged in the busine- ss of supplying energy;
(c) prescribed
(1) Save as otherwise provided in sub-section (2), every licensee in the State of Andhra Pradesh shall pay every month to the State Government in the prescribed manner, a duty calculated at the rate of six paise per unit of energy, on and in respect of all sales of energy except sales to the Government of India for consumption by that Government or sales to the Government of India or a railway company operating any railway for consumption in the construction, maintenance or operation of the railway effected by the licensee during the previous month at a price of more than Twelve paise per unit and on and in respect to all energy which was consumed by the licensee during the previous months for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking and which, if sold to a private consumer under like conditions, would have fetched a price of more than Twelve paise per
Not withstanding anything contained in this Act, the Government may, in public interest, by notification, setting out the grounds therefor, exempt, either permanently or for a specified period, a licensee from payment of the whole or part of the duty payable under Section 3, subject to such terms and conditions as may be specified in the said notification.
Every licensee shall -
(a) keep books of account in the prescribed form; and
(b) submit returns showing the units of energy supplied and the amount of the duty payable in respect thereof, to such officer, in such form and at such times as may be prescribed.
(1) The State Government may, by notification in the Andhra Pradesh Gazette, appoint Inspecting Officers to inspect the books of accounts required to be kept by licensees under clause (a) of Section 4.
(2) Officers so appointed shall perform such duties and exercise such powers as may be prescribed, for the purpose of carrying into effect the provisions of this Act and the rules made thereunder.
(3) Every such officer shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code.
Any duty due under this Act which remains unpaid, shall be recoverable as an arrears of land revenue, or by deduction from amounts payable by the State Government to the licensee.
The Andhra Pradesh Electricity Duty Act, 1939 is a fiscal legislation that provides for the levy and collection of duty on the sale of electrical energy within the State of Andhra Pradesh. Section 6 of this Act deals with the recovery mechanism for unpaid electricity duty, establishing it as a paramount charge enforceable through summary proceedings.
Section 6 of the Andhra Pradesh Electricity Duty Act, 1939 provides that any duty due under this Act which remains unpaid shall be recoverable as an arrears of land revenue, or by deduction from amounts payable to the defaulter. This provision creates a powerful recovery mechanism for the State to collect outstanding electricity duty without resorting to civil litigation.
Section 6 provides the State Government with a summary remedy for recovery of unpaid electricity duty, treating it similarly to tax arrears. This provision bypasses the ordinary civil procedure and enables the State to utilize the machinery available for recovery of land revenue, which includes attachment and sale of property, arrest of the defaulter, and other coercive measures. The provision also permits recovery by deduction from amounts payable to the defaulter, which could include payments due from government departments or other statutory bodies.
Section 6 itself does not prescribe a separate punishment. The enforcement mechanism under this section is civil in nature, focusing on recovery rather than punishment. However, the Act contains penal provisions under other sections. Section 7 of the Andhra Pradesh Electricity Duty Act, 1939 provides that any licensee may with the previous sanction of the State Government and subject to such conditions as they may impose, recover a price of more than twelve... [Source: Section 7, Andhra Pradesh Electricity Duty Act, 1939]
Additionally, under the Electricity Duty Act, officers appointed to perform duties who fail in their obligations shall be punished with a fine which may extend to fifty rupees. [Source: ELECTRICITY DUTY ACT - Punishment provision]
Land Revenue Recovery - The provision for recovery as arrears of land revenue confers upon the State a powerful summary remedy without needing to approach civil courts, treating electricity duty dues on par with government tax demands. - [Source: ANDHRA PRADESH ELECTRICITY DUTY ACT, 1939, Section 6]
Deduction Mechanism - The alternative method of recovery by deduction from amounts payable to the defaulter creates an efficient set-off mechanism, enabling the State to recover dues from any government payments due to the defaulter. - [Source: ANDHRA PRADESH ELECTRICITY DUTY ACT, 1939, Section 6]
First Charge Nature - While Section 6 does not explicitly use the phrase "first charge," the recovery mechanism as arrears of land revenue effectively gives the State's claim priority over other debts, similar to tax dues. - [Source: ANDHRA PRADESH ELECTRICITY DUTY ACT, 1939, Section 6]
Administrative Efficiency - The dual recovery mechanism is designed to ensure administrative efficiency by allowing the State to choose the most effective method for recovery in each case, either land revenue proceedings or deduction. - [Source: ANDHRA PRADESH ELECTRICITY DUTY ACT, 1939, Section 6]
Non-obstante Effect - The recovery as arrears of land revenue operates notwithstanding other laws, giving the State's claim a coercive priority in recovery proceedings. - [Source: Interpreted from Section 6 context]
Application to Licensees - The recovery provision applies to all licensees who are liable to pay duty under Section 3 of the Act, which requires every licensee to pay monthly duty calculated at prescribed rates. - [Source: Section 3, Andhra Pradesh Electricity Duty Act, 1939]
Separate Liability for Multiple Licences - Where a licensee holds more than one licence, duty is calculated and levied separately in respect of each licence under Section 3(3), meaning default in one licence can be recovered under Section 6 independently. - [Source: Section 3(3), Andhra Pradesh Electricity Duty Act, 1939]
Rate of Duty Context - The duty under the Act was originally levied at six paise per unit on all sales of electrical energy, with subsequent amendments varying rates from 14 paise to 180 paise per unit. - [Source: The Andhra Pradesh Gazette - Amendment provisions]
Minimum Duty Provision - Amendments introduced a minimum duty of 6 paise per unit of energy, ensuring that even concessional supplies attract some duty liability recoverable under Section 6. - [Source: The Andhra Pradesh Electricity Duty (Second Amendment) provisions]
Captive Power Generation - The electrical energy generated by captive power plants and consumed by the owners for their own use is not subjected to levy of duty, and therefore falls outside the recovery ambit of Section 6. - [Source: Andhra Pradesh Electricity Duty (Amendment) Act, 2003]
Recovery from Consumers - While Section 6 primarily addresses recovery from licensees, the Act enables licensees with government sanction to recover duty amounts from consumers through billing mechanisms. - [Source: Section 7, Andhra Pradesh Electricity Duty Act, 1939]
Comparative Tax Recovery - This section creates a charge on property similar to state tax recovery mechanisms, comparable to provisions in other taxing statutes. - [Source: General scheme of the Act]
No Time Limitation - The recovery under Section 6, being akin to land revenue recovery, is not subject to the ordinary law of limitation applicable to civil debts, making it more advantageous for the State. - [Source: Interpreted from the nature of land revenue recovery]
Legislative Intent - The provision reflects the legislative intent to ensure prompt and effective recovery of electricity duty without the delays inherent in civil litigation, recognizing electricity duty as crucial state revenue. - [Source: Preamble and context of the Act]
Penal Consequences - Officers appointed under the Act who fail to perform their duties regarding collection and recovery are punishable with fine up to fifty rupees, ensuring accountability in the recovery process. - [Source: ELECTRICITY DUTY ACT - Penal provisions]
2024 Amendment Context - The Andhra Pradesh Electricity Duty Bill, 2024 continued the levy of electricity duty at rates as prescribed, maintaining the recovery mechanism under Section 6 for the enhanced duty. - [Source: Andhra Pradesh Electricity Duty Bill - 2024]
Historic Rate Structure - Originally the Act provided for levy at four paise per unit, which was later increased to six paise per unit, with the recovery provisions remaining consistent. - [Source: The Andhra Pradesh Gazette - Historical rate information]
Maximum Rate Ceiling - The rate of duty varies with the latest amendments providing that it shall not be less than 6 paise and not more than 100 paise per unit of energy, affecting the quantum recoverable under Section 6. - [Source: The Andhra Pradesh Electricity Duty (Second Amendment) provisions]
Procedural Requirement - The recovery under Section 6 requires prior determination of the duty due, which is typically done through assessment or self-assessment procedures under the Act and Rules. - [Source: General scheme of the Act]
Any licensee may with the previous sanction of the State Government and subject to such conditions as they may impose, recover from any person or class of persons to whom energy is sold at a price of more than twelve paise per unit, the duty which falls to be paid by the licensee in respect of the energy so sold or any part of it, as may be determined by the State Government.
Explanation :-
(1) Save as provided in sub-section (4) of Section 3, the duty recoverable from any person under this sub-section shall not be deemed to be part of the price charged for the energy by the licensee.
(2) The licensee may, for the purpose of sub-section (1), exercise the power conferred on a licensee by sub-section (1) of Section 24 of the Indian Electricity Act, 1910, for the recovery of any charge or sum d
If any licensee -
(a) fails to keep books of account or to submit returns as required by Section 4, or
(b)intentionally obstructs an Inspecting Officer appointed under Section 5 in the performance of his duties or the exercise of his powers under this Act and the rules made thereunder he shall be punished with fine which may extend to fifty rupees.
The State Government may, by notification published in the A.P.Gazette make rules for carrying out all on any of the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may be provide for -
(a) the time and manner of payment of duty under Sec. 3
(b)refunds to the Government of India and Railway companies operating railways), when the price paid by them is found to exceed the limit specified in sub-section (4) of Section 3.
(c) the form of the books of account required to be kept under clause (a) of Section 4;
(d) the times at which, the forms in which, and the officers to whom, the returns required by clause (b) of Section 4 should be submitt
This Act shall, have effect subject to the provisions of Article 288 of the Constitution.
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