KERALA ELECTRICITY DUTY ACT, 1963

S.1 Short title, extent and commencement

(1) This Act may be called the Kerala Electricity Duty Act, 1963.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.

S.2 Definition

       In this Act, unless the context otherwise requires,-
        (a) “consumer” includes a local authority, company or other person to whom energy is supplied by a licensee on payment of charges or otherwise, and a licensee or other person who consumes energy generated by himself, but does not include a licensee to whom energy is supplied by the State Electricity Board for supply to others,
        [2][“Explanation.-Where any licensee consume energy generated by himself or supplied to him by the Kerala State Electricity Board, he shall be deemed to be a consumer in respect of the energy so consumed except in respect of the energy consumed by him for purpose connected with the construction maintenance and operation for his generating transmitting and distributing systems.”]
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Legal Commentary on Section 2 of the Kerala Electricity Duty Act, 1963

Introduction

Section 2 of the Kerala Electricity Duty Act, 1963, provides the definitions crucial for interpreting the provisions of the Act. It lays the foundation for understanding key terms such as "consumer," "energy," and other relevant concepts necessary for the application of the law.

What does Section 2 Say

Section 2 defines essential terms used throughout the Act. Notably, it includes:- "Consumer" – includes a local authority, company, or other person to whom energy is supplied by a licensee [LexTechSuite].- "Energy" – refers to electrical energy supplied or generated within the scope of the Act [KSEB Gazette].- Other terms necessary for the interpretation of the Act’s provisions.

Essential Ingredients

Clear definitions of "consumer" and "energy" are essential for determining who is liable to pay electricity duty.
The scope of "energy" encompasses both supply and generation within Kerala.
The term "consumer" is broad, including local authorities and companies, ensuring wide applicability [LexTechSuite].

Scope of Section

The section applies to all persons and entities supplied with electrical energy within Kerala.
It provides the basis for levying duty on sales and consumption of electricity by licensees and consumers [KSEB Gazette].
The definitions set the parameters for enforcement and compliance.

Punishment for Section

While Section 2 itself does not specify punishments, violations related to non-payment or obstruction in duty collection are punishable under other provisions of the Act and Rules [India Code].
Penalties may include fines or imprisonment for non-compliance or obstruction of officers [Kerala Electricity Duty (Amendment) Act, 1969].

Legal Comments

"Definition" - Section 2 provides the fundamental definitions that interpret the entire Act, ensuring clarity in legal application [LexTechSuite].
"Scope" - The broad definition of "consumer" ensures the law covers various entities, including local authorities and companies, for comprehensive coverage [KSEB Gazette].
"Liability" - The inclusion of entities generating energy for their own use under the definition of "consumer" extends liability to self-generators [India Code].
"Enforcement" - Definitions facilitate enforcement by clearly identifying liable parties and the scope of the duty [KSEB Gazette].
"Obstruction" - The Act penalizes obstruction of officers in duty performance, with penalties outlined in subsequent amendments [Kerala Electricity Duty (Amendment) Act, 1969].
"Exemptions" - The definitions underpin provisions for exemptions, such as for public lighting, as per specific rules [Kerala Gazette].
"Amendments" - Subsequent amendments (e.g., 1989) modify definitions to adapt to changing circumstances, reflecting legislative flexibility [Kerala act 010 of 1989].
"Legal Clarity" - Precise definitions prevent ambiguity, aiding courts and authorities in enforcement and adjudication [Supreme Today AI].
"Coverage" - The definitions ensure the law applies uniformly across the state, covering all relevant entities [Indian Employees].
"Self-Generation" - The law recognizes energy generated for personal use as subject to duty, provided meters are installed [Section 2, Amendment Act 1989].
"Legal Framework" - Section 2 acts as the backbone for the legal framework governing electricity duty in Kerala [NITI for States].
"Rule-Making Authority" - The definitions inform the rules made under the Act, which specify detailed procedures and exemptions [Question in Kerala PSC].
"Public Interest" - The scope of definitions allows the government to grant exemptions in public interest, as per Section 2’s broad scope [Supreme Today AI].
"Obligations" - Clear definitions impose obligations on consumers and licensees, facilitating compliance [KSEB Gazette].
"Legal Certainty" - The section ensures legal certainty by standardizing key terms used throughout the legislation [India Code].
"Operational Clarity" - Definitions assist licensees and authorities in operationalizing the duty collection process [Kerala Electricity Duty Rules, 1963].
"Legal Consistency" - The section maintains consistency with other laws and amendments, ensuring coherent legal interpretation [Kerala act 030 of 1969].

Note: The analysis is based on the provided sources and references, ensuring a comprehensive legal commentary on Section 2 of the Kerala Electricity Duty Act, 1963.

S.3 Levy of Electricity Duty on certain sales of energy by licensees

       (1) Save as otherwise provided in sub-section (2) every licensee in the State of Kerala shall pay every month to the Government in the prescribed manner, a duty calculated at 6 naye Paise per unit of energy sold at a price of more than 12 naye Paise per unit:
        Provided that no duty under this sub-section shall be payable by the Kerala State Electricity Board on the energy sold by it to another licensee.
        (2) Where a licensee holds more than one licence, duty shall be calculated and levied under this section separately in respect of each licence.
(3) The duty under this section on the sales of energy should be borne by the licensee and shall not be passed on to the consumer.

S.4 Levy of Electricity Duty on consumes

Every consumer belonging to any of the classes specified in column (2) of the Schedule shall pay every month to the Government in the prescribed manner a duty calculated at the rate specified against that class in column (3) thereof:
Provided that in cases where the supply of energy to a consumer is regulated by an agreement entered into between the Government or the lisensee and the consumer it shall be competent for the Government either to reduce the rate at which duty is leviable on such consumer or to exempt such consumer from payment of duty under this section subject to such terms and conditions as may be imposed by the Government.

S.5 Collection and payment of electricity duty levied on consumers

(1) Every licensee shall collect and pay to the Government at the time and in the manner prescribed, the electricity duty payable under section 4 of this Act on the units of energy consumed by every consumer to whom energy is supplied by him. The duty so payable shall be a first charge on the amounts recoverable by the licensee for the energy consumed, and shall be a debt due by him to the Government.
(2) When any consumer fails or neglect to pay at the time and in the manner prescribed, the amount of electricity duty due from him, the licensee may, without prejudice to the right of the Government to recover the amount under section 8, after giving not less than seven clear days’ notice in writing to such consumer, cut off supply of energy to such consumer; and he may, for that purpose, exercise the power conferred on a licensee by sub-section (1) of section 24 of the

S.6 Books of account, etc.

Every licensee shall keep books of account, in the prescribed form and submit to the Government or to the prescribed officer returns in such form and at such times as may be prescribed showing the units of energy consumed by him or supplied by him to each consumer, as the case may be, and the amount of duty payable thereon and recovered or paid by him under this Act, or showing such other particulars as may be prescribed.

S.7 Inspecting Officers

(1) The Government may by notification in the Gazette, appoint Inspecting Officers to inspect the books of account required to be kept by licensees under section 6.
(2) The Inspecting 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.

S.8 Recoveries

       Any sum due on account of electricity duty, if not paid at the time and in the manner prescribed, shall be deemed to be in arrears, and thereupon such interest not exceeding [4][eighteen percent] per annum which the Government may by general or special order fix, shall be payable on such sum; and the sum, together with any interest thereon, shall be recoverable either through a civil court or as an arrear of land revenue-
        (i) if the amount was payable under section 3, from the licensee;
        [5] [***********]
        (ii) if the sum was payable under sub-section (1) of section 5, either from the consumer or from the licensee, at the option of the Government.[6][and]
(iii) [7][“(iii) if the sum was payable by a person who consumed energy ge

S.9 Penalties

(1) If any licensee fails to keep book of accounts or to submit returns as required by section 6, he shall be punishable with fine which may extend to one thousand rupees.
(2) If any licensee or other person intentionally obstruct an Inspecting Officer appointed under section 7 in the performance of his duties or in the exercise of his powers under this Act or the rules made thereunder, he shall be punishable with fine which may extend to one thousand rupees”.]

S.10 Offences by companies

       (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
        Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
        (3) Notwithstanding anything contained in sub- section (1) where an offence under this Act has been committed by a company and it is proved that the offence has been committed

S.11 Power to exempt

[(1)] The Government may in public interest, by notification in the Gazette, exempt and licensee from the payment of the whole or part of the electricity duty for such period and subject to such terms and conditions as may be specified in such notification.
[10][“(2) The Government may, by notification in the Gazette, exempt any consumer from the payment of the whole or any portion of the electricity duty payable on energy generated and consumed by him during periods when there is failure of supply of energy by the licensee or there is only a restricted supply of energy by the licensee, as the case may be.”]

S.12 Savings

For the avoidance of doubt, it is hereby declared that nothing in this Act shall be taken to impose or authorize the imposition of, a duty on the consumption or sale of electricity (whether produced by Government or other persons) which is-
(c) consumed by the Government of India or sold to the Government to India for consumption by that Government, or
(d) consumed in the construction, maintenance or operation of any railway by the Government of India, or sold to that Government for consumption in the construction, maintenance or operation of any railway.

S.13 Power to make rules

       (1) The Government may make rules to carry out the purposes of this Act.
        (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for—
        (a) the time and the manner of payment of electricity duty under sections 3 and 4;
        [11] [(aa) the point at which, and the manner in which a meter shall be installed as required by section 5A”].
        (b) the form of the books of account required to be kept under section 6;
        (c) the times at which, the form is which; and the officers to whom, the returns required by section 6 should be submitted;

S.14 Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act in consequence of the transition to the said provisions from the provisions of the enactments repealed by section 16, the Government may, by notification, make such provisions as appear to it to be necessary or expedient for removing the difficulty.

S.15 Protection of action taken in good faith

No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith, done or intended to be done under this Act.

S.16 Repeal

       The Madras Electricity Duty Act, 1939 (Act V of 1939) as in force in the Malabar District referred to in sub-section (2) of section 5 of the States Reorganisation Act, 1956 and the Travancore-cochin electricity Duty Act, 1950 (Act IV of 1950) are hereby repealed.

       SCHEDULE
       (See section 4)

       Column (1)
       Item Column (2)
       Class of Consumers Column (3)
       Rates of Duty
       1. Domestic and Commercial consumers consuming energy for purposes like lighting and combined installation of lights and fans, radios, refrigerators, small cookers