THE BOMBAY ELECTRICITY DUTY ACT, 1958

BOMBAY ACT No. XL OF 1958

(Assented to by the Governor)

[9th May, 1958]

The Bombay Electricity Duty Act, 1958 provides for levy of electricity duty on units of energy consumed. The rates of electricity duty vary with the purposes and premises where electricity is consumed.

The licensees and the Maharashtra State Electricity Board through their billing centres recover electricity duty from the consumers and remit the amounts in treasuries.

The private generator holders who generate and consume energy for themselves pay the amount of electricity duty into Government treasury.

The licensees and the generator holders are required to submit quarterly returns to the Electrical Inspector.

Adapted and modified by the Maharashtra Adaptation of Laws (State and Concurrent Subjects) Order, 1960.

Amended by Mah. 26 of 1962.

„ „ 18 of 1963.

„ „ 51 of 1965.

„ „ 28 of 1972.

„ „ 16 of 1973.

„ „ 45 of 1973²(19-10-1973.

„ „ 12 of 1974 (1-4-1974).

„ „ 74 of 1975 (1-1-1976).

„ „ 18 of 1978 (1-9-1978)

„ „ 33 of 1984.

„ „ 13 of 1986.

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:—

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT

(1) This Act may be called the Bombay Electricity Duty Act, 1958.

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

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

SECTION 02: 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 *[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;

(b) "energy" means electrical energy when generated, transmitted, supplied or used for any purpose except the transmission of a message ;

(c) "licensee" means any person licensed under Part II of the Indian Electricity Act, 1910, to supply energy and includes any person who has obtained the sanction of the State Government under Section 28 of that Act, 1[the Central Government or a State Government when it is engaged] in a business of supplying energy and the State Electricity Board constituted under Section 5 of the Electricity (Supply) Act, 1948;

*These words and figures were inserted by Mah. 18 of 1963, S. 2.

'[(ca) "new industrial undertaking" means any industrial undertaking which—

(i) is not formed by the splitting up or the reconstruction of business already in existence ; or

3[(ii) is not formed by transfer, to a new business, of machinery or plant or any part thereof, previously used for any purpose in India, exceeding in value twenty per cent of the total value of the machinery or plant of such new industrial undertaking when it begins to manufacture or produce articles for the first time ; and].

(iii) which begins or has begun to manufacture or produce articles for the first time on or after the commencement of the Bombay Electricity Duty (Amendment) Act, 1962, or at any time within a period of five years immediately preceding such commencement] ;

(d) "prescribed" means prescribed by rules made under this Act.

1.These words were substituted for the words "the State Government when it is engaged" by Mah. 26 of 1962, S. 2(1).

2.This clause was inserted by Mah. 26 of 1962, S. 2(2).

3. Substituted by Mah. Act 13 of 1986, S 2.

SECTION 03: 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 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.

(2) '[(a)] Electricity duty shall not be leviable on the units of energy consumed,—

2[(i) by the Government of Maharashtra (save in respect of premises used for residential purposes);

(ia) by or in respect of any municipal corporation, municipality, municipal committee, town committee, notified area committee, Cantonment Board, Zilla Parishad or village panchayat constituted under any law for the time being in force in the State, for the purpose of, or in respect of, ³[a school or college imparting education or training in academic or technical subjects, a hospital, nursing home, dispensary, clinic, public street lighting, public water works and system of public sewers or drains (save in respect of premises used for residential purposes)];

(ib) by any licensee for purposes directly connected with the construction, maintenance or operation of any generating, transmitting and distributing system of the licensee;]

(ii) by a tramway company, save in respect of premises used for residential and office purposes ;

⁴[(iii) by or in respect of any statutory University and institution run by the statutory University for the purpose of or in respect of education, research and training (save in respect of premises used for residential purposes);

(iiia) by or in respect of charitable institution registered under the Bombay Public Trusts Act, 1950, for the purpose of, or in respect of, a school or college imparting education or training in academic or technical subjects (save in respect of premises used for residential purposes),];

(iv) where the energy is generated by any person for the purpose of supplying it for the use of vehicles or vessels;

(v) where the energy is generated at a voltage not exceeding 100 volts;

(vi) in respect of such industrial or agricultural purposes (other than residential or office purposes) in such areas and subject to such terms and conditions and for such period as the State Government may, having regard to the need and conditions of industrial and agricultural development in the areas by general or special order specify in that behalf,

1. Sub-section (2) was re-numbered as clause (a) of that sub-section, by Mah. Act 26 of 1962, S. 3

2. This portion was substituted for the original sub-clause (i) by Mah. 18 of 1962, S. 3.

3. Subs, by Mah. Act 13 of 1986, S. 3(1) (a).

4. Inserted by Mah. Act 13 of 1986, S. 3 (1) (b).

³[(vii) for any industrial purpose or process, in the Vidarbha region, ²[Marathwada region, in the Raigad* Sindhudurg and Ratnagiri Districts and in the Thane District (but excluding therefrom the part adjoining Greater Bombay, which is encircled by the Thane-Bassein creek] in respect of any new industrial undertaking during a period of five years from the date of which such undertaking begins to manufacture or produce articles for the first time (and where the undertaking has already begun to manufacture or produce articles before the commencement of the Bombay Electricity Duty (Amendment) Act, 1962, during the remainder of such period after such commencement);]

3[Provided that, a new industrial undertaking which begins to manufacture or produce articles for the first time on any date after the commencement of the Bombay Electricity Duty (Amendment) Act, 1986 (hereinafter referred to in this sub-clause as "the said date"), shall make an application in the prescribed manner and form within two years from the said date; and thereupon the provisions of this sub-clause shall apply to such undertaking from the said date:].

1. This portion was added by Mah. 26 of 1962, S. 3(2).

2. Subs, by Mah. Act 13 of 1986, S. 3 (1) (c) (i).

3. Inst by ibid, S. 3 (1) (c) (ii).

[Provided further that] the State Government may, either prospectively or retrospectively, by notification in the Official Gazette, exclude,—

(a) any areas aforesaid or any part thereof (regard being had to the price of energy prevailing therein and to the state of industrial development thereof), or

(b) any new industrial undertaking, 3[or class of new industrial undertaking, subject to such conditions and restrictions] as may be specified in this behalf by the State Government in such notification; and thereupon the provisions of ⁴[this sub-clause] shall not apply in those areas or part thereof or in relation to such new industrial undertaking ⁵[or class of new industrial undertaking.]

(c) In those parts of the State not mentioned in 6[sub-clause] (vii) of clause (a) (but excluding Greater Bombay) electricity duty on the units of energy consumed by any new industrial undertaking for any industrial purpose or process, shall, during a period of five years commencing from the date from which such undertaking manufactures or produces articles for the first time (and where the undertaking has already begun to manufacture or produce articles before the commencement of the Bombay Electricity Duty (Amendment) Act, 1962 during the period remaining out of such five years after such commencement), be leviable at half the rates specified in the Schedule to this Act:

7[Provided that, a new industrial undertaking which begins to manufacture or produce articles for the first time on any date after the commencement of the Bombay Electricity Duty (Amendment) Act, 1986 (hereinafter referred to in this sub-clause as "the said date"), shall make an application in the prescribed manner and form within two years from the said date; and thereupon the provisions of this sub-clause shall apply to such undertaking from the said date:"]

1. This proviso was deemed always to have been substituted by Mah. 45 of 1973, S. 2(1)

2. Subs, by Mah. Act 13 of 1986, S. 3(1) (c) (iii) (A).

3. Inst. by Mah. Act 13 of 1986, S. 3 (1) (c) (iii) (B).

4. Subs, by ibid, S. 3 (1) (c) (iii) (C).

5. Inst. by ibid, S. 3 (1) (c) (iii) (D).

6. Subs, by Mah. Act 13 of 1986, S. 3 (2) (a).

7. Inst. by Mah. Act 13 of 1986, S. 3 (2) (b).

1[2[Provided further that] the State Government may either prospectively or retrospectively, by notification in the Official Gazette, exclude,—

(a) any area aforesaid or any part thereof (regard being had to the price of energy prevailing therein and to the state of industrial development thereof), or

(b) any new industrial undertaking, ³[or class of new industrial undertaking subject to such conditions and restrictions] as may be specified in this behalf by the State Government in such notification ;

and thereupon the provisions of this clause shall not apply in those areas or part thereof or in relation to such new industrial undertaking ⁴[or class of new industrial undertaking.]]

1. This proviso was deemed always to have been substituted, by Mah. Act 13 of 1986, S. 2(2).

2. Subs, by ibid. S. 3 (2) (c) (i).

3. Inst. by ibid. S. 3 (2) (c) (ii).

4. Inst. by ibid. S. 3 (2) (c) (iii).

SECTION 04: 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 units 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:

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.

(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.

(3) Where any person fails or neglects to pay, at the time and in the manner prescribed, the amount of electricity duty 1[due from him in respect of energy supplied to, or consumed by, any person at any time,] the licensee, or as the case may be, the person supplying energy free of charge, may, without prejudice to the right of the State Government to recover the amount ²[under Section 8, deduct such amount of electricity duty from the amount, if any, deposited by the consumer with the licensee or such person or] after giving not less than seven clear days' notice in writing to such person, cut off the supply of energy to such person; and he may, for that purpose, exercise the power conferred on a licensee by sub-section (1) of Section 24 of the Indian Electricity Act, 1910, for recovery of any charge or sum due in respect of energy 3[supplied to, or consumed by, such person].

(4) The licensee, or as the case may be, the person supplying energy free of charge shall be entitled to a rebate of such amount as may from time to time be determined by the State Government, regard being had to the cost of collection of the duty incurred by such licensee, or person supplying energy free of charge.

(5) Every person other than a licensee who generates energy for his own use shall 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 him.

(6) Notwithstanding anything contained in the foregoing sub-sections of this section, where the State Government is satisfied that there is a bonafide mistake, on the part of any licensee, person supplying energy free of charge or person generating energy for his own use, in paying the proper electricity duty, on account of wrong meter reading or misclassification of consumption falling under any particular part or clause in the Schedule, the State Government may, at any time, by order, waive or write off, with retrospective effect, the recovery of the amount of the electricity duty or any part thereof due at the proper rate and of the amount of interest, if any, payable for delayed payment under Section 8.]

1. These words were substituted for the words "due from him" by Mah. 74 of 1975, S, 2(a).

2. These words and figures were substituted for the words and figure "under Section 7, and" by Mah. 18 of 1963, S. 4.

3. These words were substituted for the words "supplied by him" by Mah. 74 of 1975, S. 2(b).

SECTION 04A: REFERENCE FOR DECISION TO AUTHORITY THE QUESTION AS TO PART OR CLAUSE OF SCHEDULE UNDER WHICH ANY CONSUMPTION OF ENERGY FALLS

(1) Where any question arises 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 7A to, or revision under Section 7B by, the State Government, and the order of the State Government in such appeal or revision, be final.]

SECTION 05: 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 sub-section (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.

SECTION 05A: POWER TO EXEMPT

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, Part E, Part F or Part H] of the Schedule to this Act.]

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

2. These words were deemed always to have been inserted from 1st October, 1962, by Mah. 45 of 1973, S. 3.

3. Substituted by Mah. Act 13 of 1986, S. 5

SECTION 06: 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.

SECTION 07: 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 '[the Code of Criminal Procedure, 1973].

SECTION 07A: 2[APPEAL

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.]

SECTION 07B: REVISION

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. Subs, by Mah. Act 33 of 1984, S. 3.

2. Sec. 7A inserted by Mah. Act 13 of 1986, S. 6.

3. Sec. 7B Inserted by Mah. Act 13 of 1986, S, 6.

SECTION 08: 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 [or any officer authorized 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 Government [or any officer authorized by the State Government in this behalf],

(c) if the sum was payable under sub-section (5) of Section 4 from the person who generates energy for his own use.

SECTION 09: 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 [one thousand rupees].

SECTION 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, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation :—For the purposes of this section,—

(a) "company" means a body corporate and includes a firm or other association of individuals; and

(b) "director" in relation to a firm means a partner in the firm.

1. Clause (d) was inserted, by Mah, Act 18 of 1963, S. 7(a)

2. These words were substituted for the words "fifty rupees". ibid,

SECTION 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.

SECTION 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 Inspector 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 any documents under the Act;

(h) prescribe the procedure for referring questions to the authority, and for riling an appeal to the State Government against the decision of such authority, under paragraph II of the Schedule;]

provide for giving effect to the provisions of this Act.

(3) The making of rules under this section shall be subject to the condition of previous publication.

3[(4) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall from the date of publication of a notification in the Official Gazette of such decision have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done under that rule.]

1. Clauses (e) to (h) were inserted by Mah. 18 of 1963, S 8(a)

2. Clause (e) was relettered as clause (i), ibid. 3- Sub-section (4) was inserted, ibid.. S. 8 (b)

SECTION 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.

SECTION 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 be imposed as if this Act had not been passed:

Provided further that, subject to the preceding proviso, rates of duty or of interest prescribed, or rules or forms framed, under the provisions of Part II of the Bombay Finance Act, 1932 and any appointment of Inspectors made under any of the repealed provisions shall be deemed to have been prescribed, framed or made under the corresponding provisions of this Act, and shall continue to be in force accordingly, unless and until superseded by anything done or any action taken under this Act.

SECTION 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.