MAHARASHTRA ELECTRICITY DUTY ACT, 1958

Act No. 40 of 1958

An Act to provide for the levy of a duty on consumption of electrical energy in the State of Bombay. WHEREAS it is expedient to provide for the levy of a duty on consumption of electrical energy in the State of Bombay; It is hereby enacted in the Ninth Year of the Republic of India as follows :- 1. Substituted by Maharashtra (Change of Short Titles of Certain Bombay Acts) Act, 2011, for the followings:- "BOMBAY ELECTRICITY DUTY ACT"

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S.1 Short title, extent and commencement

(1) This Act may be called the 2 [Maharashtra Electricity Duty Act], 1958.

(2) It extends to the whole of the 1 [State of Maharashtra].

(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

1. These words were substituted for the words "State of Bombay" by the Maharashtra Adaptation of Laws (State and Concurrent Subjects) Order, 1960.

2. Substituted by Maharashtra (Change of Short Titles of Certain Bombay Acts) Act, 2011, for the followings:- "Bombay Electricity Duty Act"

S.2 Definitions

In this Act, unless the context requires otherwise,-

• (a) "consumer" means any person who is supplied with energy on payment of charges or otherwise by a licensee or by any other person who generates energy but does not include a licensee to whom energy is supplied 1 [by a bulk licensee within the meaning of clause IX of the Schedule to the Indian Electricity Act, 1910, or] by the State Electricity Board constituted under section 5 of the Electricity (Supply) Act, 1948, and the word "consume" with its grammatical variations shall be construed accordingly;

NOTES

Scope and object.-When a consumer made a requisition for transfer of electric connection, the possibility of increase in the load existed as a result of transfer. The question arose whether statutory obligation to allow transfer exist. It was held, that there was no statutory obligation on a licensee to allow the transfer of the service connection where such transfer involves likel

S.3 Duty on units of energy consumed

(1) Subject to the provisions of sub-section (2), there shall be levied and paid to the State Government on the 1 [consumption charges or the] units of energy consumed (excluding losses of energy sustained in transmission and transformation by a licensee before supply to a consumer), a duty (hereinafter referred to as "electricity duty") at the rates specified in the Schedule to this Act.

NOTES

It was held by the Supreme Court that, guest houses maintained by commercial undertakings form a part of commercial venture. It cannot by any stretch of imagination be termed as exclusive private residential premises. Test of profit making as well as use of word "private" in contra distinction to "public" as made by the High Court has no relevance for interpreting the expression "exclusively private residential premises".-Municipal Corporation of Greater Bombay v. Mafatlal Industries & Ors.. AIR 1996 SC 1541 : 1996 (3) J. T. 190 : 1996 (2) Scale 415 : 1996 (8) SCC 27

S.4 Payment of electricity duty

(1) Every licensee shall collect and pay to the State Government at the time and in the manner prescribed, the proper electricity duty payable under this Act on the 1 [consumption charges] of energy supplied by him to consumers. The duty so payable shall be a first charge on the amount recoverable by the licensee for the energy supplied by him and shall be a debt due by him to the State Government :

(2) Every person, not being a licensee who generates energy and supplies the same to any other person free of charge, shall collect and pay to the State Government at the time and in the manner prescribed, the proper electricity duty payable, under this Act on the units of energy consumed by that other person.

Provided that, where the licensee has been unable to recover his dues for the energy supplied by him, he shall not be liable to pay the duty in respect of the energy so supplied.

(3) Where any person fails or neglects to pay, at the time and in the

S.4A Reference for decision to authority question as to part or clause of Schedule under which any consumption of energy falls

1 [(1) Where any question arises as to the part or clause in the Schedule to this Act under which any consumption of energy falls, or where the energy is consumed for different purposes what portion of consumption should be governed by such part or clause, the question shall be referred for decision to such authority, as the State Government may, by notification in the Official Gazette, specify for the whole or any part of the State. The authority after such inquiry, as it deems fit, shall record its decision.

(2) The decision recorded by the authority under subsection (1) shall, subject to any appeal under section 7 A to, or revision under section 7B by, the State Government, and the order of the State Government in such appeal or revision, be final.]

NOTES

For Appeal see section 7-A of the Act.

1. Section 4A was inserted by Mah. 13 of 1986, Section 4.

S.5 Licensee etc., to keep books of account and submit returns

Every licensee, and every person not being a licensee who supplies energy free of charge as mentioned in subsection (2) of section 4, and every other person who is liable to pay electricity duty under sub-section (5) of section 4 shall, save in respect of energy exempt from electricity duty under sub-section (2) of section 3, keep books of account in the prescribed form and submit to the State Government or to the prescribed officer returns in such form and at such times as may be prescribed, showing the units of energy supplied by him to each consumer, or as the case may be, consumed by him, and the amount of the duty payable thereon and recovered or paid by him under section 4.

NOTES

Audit of Private Electric Licensees.-The audit of accounts of licensees submitted by them as per the provisions of the Indian Electricity Act, 1910 is carried out with the intention to safeguard the interest of the consumers in the rates and general charges levied hy the licensees. The

S.5A Power to exempt

1 [Subject to such conditions as it may impose. the State Government may. if it considers it necessary in the public interest so to do, by notification in the Official Gazette, exempt 2 [whether prospectively or retrospectively,] the consumption of energy in the whole or any part of the State in respect of any class of premises or purposes or in respect of energy consumed upto a specified limit, from payment of the whole or any part of the electricity duty payable under Part A, 3 [Part B or 4 [Part F or Part G] of the Schedule to this Act.]

NOTES

New section 5-A in the principal Act which empowers the State Government to grant exemption from duty for the consumption of energy in the whole or any part of the State in the public interest as and when it deems necessary and notify the same in the Official Gazette. [Mah. Act No. XXVI of 1962].

1. Section 5A was inserted by Mah. 26 of 1962, Section 4.

2.

S.6 Inspecting Officers

(1) The State Government may by notification in the Official Gazette appoint any persons as it thinks fit. having the prescribed qualifications to be Inspectors for the purposes of this Act.

(2) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

NOTES

"Electrical Inspector" means an Electrical Inspector, appointed by the State Government under section 36 of the Indian Electricity Act, 1910.-See rule 2(d).

"Inspector" appointed under section 6 of the Act.-See rule 2(f).

"Qualifications of Inspectors"- See rule 11.

Assistant to Electrical Inspectors- See rule 11.

Naib-Tahsildar or Industries Inspector.-- There categories of persons can be appointed as Assistant to Electrical Inspectors.-See rule 11.

S.7 Powers of Inspectors

(1) Subject to the provisions of any rules made by the State Government in this behalf, an Inspector may -

• (i) require production for inspection of such books and records as may be necessary for ascertaining or verifying the amount of electricity duty leviable under the Act;
• (ii) enter and search any premises where energy is, or is believed to be supplied for the purpose of -
  • (a) verifying the statements made in the books of account kept and returns submitted under section 5,
  • (b) testing the reading of meters,
  • (c) verifying the particulars required in connection with the levy of electricity duty;
• (iii) exercise such other powers and perform such other duties as may be necessary for carrying out the purposes of this Act or the rules made thereunder.

(2) All searches made under sub-section (1) shall be made in accordance with the provisions of 1 [the Code of Criminal Procedure, 1973].

NOT

S.7A Appeal

1 [An appeal against the decision of the authority under sub-section (1) of section 4A shall lie to the State Government and such appeal shall be made within sixty days from the date of the decision.]

1. Sections 7A and 7B were inserted by Mah. 13 of 1986. Section 6.

S.7B Revision

1 [Where no appeal is made under section 7A, the State Government may, at any time, suo motu, for the purpose of satisfying itself as to the legality or propriety of the decision of the authority under sub-section (1) of section 4A, call for and examine the record of the case. If it appears to the State Government that any decision so called for should be modified, annulled or reversed, the State Government may, after giving the person affected thereby, an opportunity of being heard, pass such order thereon as it thinks just.]

1. Sections 7A and 7B were inserted by Mah. 13 of 1986, Section 6.

S.8 Recoveries

1 [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, interest on such sum shall be payable at the rate of 18 per cent. per annum for the first three months immediately after the time such sum has become due and, thereafter at the rate of 24 per cent. per annum till such sum is paid;] and the sum together with any interest thereon, shall be recoverable either through a Civil Court or as an arrear of land revenue -

• (a) if the sum was payable under sub-section (1) of section 4, either from the consumer, or, subject to the proviso to the said sub-section, from the licensee, at the option of the State Government 2 [or any officer authorised by the State Government in this behalf],
• (b) if the sum was payable under sub-section (2) of section 4, either from the consumer or from the person supplying energy free of charge, at the option of the State Gov
  

S.9 Penalties

If any person -

• (a) fails to keep books of account or to submit returns in accordance with the provisions of section 5 and the rules made in that behalf under section 12, or
• 1 [(ai) contravenes any rule made under the Act, or]
• (b) wilfully obstructs an Inspector in the exercise of the powers conferred upon him by or under this Act,

he shall, on conviction, be punished with fine which may extend to 2 [one thousand rupees].

NOTES

Amended section 9 of the principal Act provides to lay down penalty for contravention of any rule made under the Act. The limit of fine has also been enhanced from Rs. 50 to Rs. 1.000.-[Mah. Act No. 18 of 1963].

1. Clause (ai) was inserted, ibid., Section 7(a).

2. These words were substituted for the words "fifty rupees", ibid., Section 7(b).

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.

(2) 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 with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, ma

S.11 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.12 Power to make rules

(1) The State Government may make rules not inconsistent with the provisions of this Act, for the purpose of carrying into effect the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power such rules may -

• (a) prescribe the time and manner of payment of the electricity duty under section 4;
• (b) prescribe the form of the books of account to be kept, and the times at which, the form in which and the officers to whom the returns required by section 5 shall be submitted;
• (c) prescribe the qualifications of Inspectors under section 6;
• (d) prescribe the rules, if any, subject to which the Inspectors may exercise the powers under section 7;
• 1 [(e) provide for installation and the reading of meters and sub-meters;
• (f) prescribe the procedure for securing any concession or exemption under the Act;
• (g) provide for charging fees for the supply of copies of an
  

S.13 Savings

For the avoidance of doubt, it is hereby declared that nothing in this Act shall be taken to impose or authorise the imposition, of, a tax on the consumption or sale of electricity (whether produced by a Government or other persons) which is -

• (a) consumed by the Government of India or sold to the Government of India for consumption by that Government, or
• (b) consumed in the construction, maintenance or operation of any railway of the Government of India, or sold to that Government for consumption in the construction, maintenance or operation of any railway.

S.14 Repeals and savings

On the commencement of this Act the following provisions shall stand repealed, namely :-

• (i) Part II of the Bombay Finance Act, 1932;
• (ii) The Central Provinces and Berar Electricity Duty Act, 1949;
• (iii) The Saurashtra Electricity Duty Act, 1956 ;

Provided that, such repeal shall not affect -

• (a) the previous operation of any law so" repealed or anything duly done or suffered thereunder; or
• (b) any right, privilege, obligation, or liability acquired, accrued or incurred under any law so repealed; or
• (c) any penalty or punishment incurred in respect of any offence committed against any law so repealed; or
• (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty or punishment as aforesaid;

and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty or punishment may

S.15 Consequential

In the Bombay Finance Act, 1932, in the long title and in the preamble, the words "to provide for the levy of a duty on consumption of electrical energy" shall be deleted.