The Telangana Electricity Duty Act, 1939

THE TELANGANA ELECTRICITY DUTY ACT, 1939. (ACT NO. V OF 1939.) ARRANGEMENT OF SECTIONS Sections 1. Short title and extent. 2. Definitions. 3. Levy of a duty in certain sales of electrical energy. 3-A. Power to exempt. 3-B. Levy of a duty on certain energy generated and consumed. 4. Maintenance of books of accounts and submission of returns and installation of meters. 5. Inspecting officers. 6. Recovery of duty. 7. Licensee to reimburse himself from consumer in certain cases. 8. Penalties. 9. Power to make rules. 10. Savings. THE TELANGANA ELECTRICITY DUTY ACT, 1939.1 ACT No. V OF 1939. 2[1. (1) This Act may be called the 3[Telangana] Electricity Short title and Duty Act, 1939. extent. (2) It extends to the whole of the State of 3[Telangana].] 2. In this Act, unless there is anything repugnant in the Definitions. subject or context,- (a) „energy‟ means electrical energy; 4[(b) „Licensee‟ means,- (i) any person including a company or a local authority licensed under part II of the Indian Electricity Act, 1910, to Central Act 9 of 1910. 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 3Telangana State Electricity Board constituted Central Act LIV of under section 5 of the Electricity (Supply) Act, 1948; 1948. (iii) the National Thermal Power Corporation or any other corporation engaged in the business of supplying energy;] 1. The Andhra Pradesh Electricity Duty Act, 1939 in force in the combined State, as on 02.06.2014, has been adapted to the State of Telangana, under section 101 of the Andhra Pradesh Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Notification issued in G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016. 2. Substituted by Act No.8 of 1968. 3. Substituted by G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016. 4. Substituted by Act No.10 of 1985. 2 [Act No.V of 1939] (c) „prescribed‟ means prescribed by rules made under this Act. Levy of a duty in 3. (1) Save as otherwise provided in sub-section (2), every certain sales of licensee in the 5[State of 6[Telangana]] shall pay every electrical energy. month to the 7[State] Government in the prescribed manner, a duty calculated at the rate of 8[six paise per unit of energy], on and in respect of all sales of energy, 9[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 that railway] effected by the licensee during the previous month at a price of more than 10[twelve paise per unit] 11[and on and in respect of all energy which was consumed by the licensee during the previous month 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 10[twelve paise per unit]. 5. Substituted “State of Andhra Pradesh” for the “Andhra Area of the State of Andhra Pradesh” by Act No.8 of 1968. 6. Substituted by G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016. 7. The word “State” was substituted for the word “Province” by the Adaptation Order, 1950. 8. Substituted for “four paise per unit of energy” by Act No.1 of 1994. 9. Substituted by the Andhra (Amendment) Order, 1950 for the words and brackets “(except sales to the Central Government for consumption by that Government or to the Federal Railway)” which were inserted by section 2 and deemed to have formed part of the main Act from its commencement by section 3 of, and the second Schedule to Act VII of 1948. 10. Substituted for “two annas” by Act No.8 of 1968. 11. Added by section 3 (i) of Madras Act VIII of 1945 re-enacted permanently by section 2 of, and the First Schedule to Act VII of 1948. [Act No.V of 1939] 3 12[Provided that no duty under this sub-section shall be payable on and in respect of sale of energy effected,- (a) by the 13Telangana State Electricity Board to any other licensee; (b) by the National Thermal Power Corporation to the 13Telangana State Electricity Board.] 14[(2) A licensee shall be exempt from duty under sub- section (1) in any month if in the previous month the total sales of energy effected by him at whatever price together with the energy consumed by him for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking, did not exceed 16,666 units: Provided that if at the end of any financial year, it is found that in such year the total sales of energy effected by the licensee at whatever price together with the energy consumed by him for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking, were not less than 200,000 units, the licensee shall pay the duty in respect of any month or months comprised in such year in which the total of the sales and of the consumption as aforesaid did not exceed 16,666 units.] (3) Where a licensee holds more than one licence, duty shall be calculated and levied under this section separately in respect of each licence. 12. Added by Act No.10 of 1985. 13. Substituted by G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016. 14. Substituted for original sub-section (2) by section 3 (ii) of Act VII of 1948. 4 [Act No.V of 1939] 15[(4) Where a licensee who is liable to pay duty under this section sells energy to the 16[Government of India for consumption by that Government or to a railway company operating any railway for consumption in the construction, mainennance or operation of that railway], the price charged on such sales shall be less by the amount of the duty than the price charged to other consumers of a substantial quantity of energy, provided the price last mentioned is more than 17[twelve paise] per unit. In this sub-section, the expression „price charged to other consumers‟ shall include the duty, if any, recoverable from the consumer under sub-section (1) of section 7. 18[Explanation:- The expression “railway” in this section and in section 9 shall have the meaning assigned to it in clause (20) of article 366 of the Constitution]. Power to exempt. 19[3-A. Notwithstanding 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 15. This sub-section and explanation were added by section 2 of Madras Act II of 1943 re-enacted permanently with specified modifications by section 3 of, and the second schedule to Act VII of 1948. This amendment shall be deemed to have formed part of the principal Act from its commencement. 16. Substituted for the words “Central Government for consumption by that Government or to the Federal Railway Authority or a railway company operating a Federal Railway for consumption in the construction, maintenance or operation of a Federal Railway” by the Andhra (Amendment) Order, 1950. 17. Substituted for “two annas” by Act No.8 of 1968. 18. Substituted for the original Explanation by the Andhra (Amendment) Order, 1950. 19. Inserted by Act No.21 of 1996. [Act No.V of 1939] 5 terms and conditions as may be specified in the said notification.] 20[3-B. (1) Every person or a generating company who Levy of a duty on generates energy and uses for his own purpose shall pay certain energy generated and every month to the State Government, a duty calculated at consumed. the rate of twenty five paise per unit of energy on and in respect of such energy consumed during the previous month: Provided that no duty shall be leviable in respect of the energy consumed in the auxiliaries of the generating plant. (2) The State Government, may, by notification specify from time to time the minimum aggregate capacity of the generating plant from which the energy generated and used shall attract levy of duty under sub-section (1) thereof. (3) The State Government, may, by notification exempt either permanently or for a specified period any person or a generating company from payment of the whole or part of the duty payable under sub-section (1) subject to such terms and conditions as may be specified in the said notification.] 21[4. (1) Every person or generating company or a licensee Maintenance of liable to pay duty under section 3 or section 3-B shall books of accounts maintain the books of accounts in the prescribed form and and submission of returns and shall submit the returns showing the units of energy installation of generated and the Units of energy consumed in auxiliaries meters. of a generating plant and the energy consumed for their own purposes, energy sold to the consumers and the amount payable in respect of such energy consumed or 20. Inserted by Act No.14 of 2003. 21. Substituted by Act No.14 of 2003. 6 [Act No.V of 1939] sold as the case may be, to such officer, in such form and at such time as may be prescribed. (2) The energy generated or the energy consumed or sold shall be measured by the energy meters installed at such point and in such manner as may be prescribed.] Inspecting 5. (1) The 22[State] Government may, by notification in the officers. 23[Telangana Gazette] appoint Inspecting Officers to inspect the books of account 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 Central Act 45 of 1860. Code. Recovery of duty. 6. Any duty due under this Act which remains unpaid, shall be recoverable as an arrear of land revenue, or by deduction from amounts payable by the 22[State] Government to the licensee. Licensee to 7. (1) Any licensee may, with the previous sanction of the reimburse himself 22[State] Government and subject to such conditions as they from consumer in may impose, recover from any person or class of persons to certain cases. whom energy is sold at a price of more than 24[twelve paise] per unit, the duty which falls to be paid by the licensee in 22. Substituted for the word “Provincial” by the Adaptation Order, 1950. 23. Substituted for “Andhra Pradesh Gazette” by G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016. 24. Substituted for “two annas” by Act No.8 of 1968. [Act No.V of 1939] 7 respect of the energy so sold or any part of it, as may be determined by the 25[State] Government. Explanation:- 26[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 Central Act 10 of 1910. recovery of any charge or sum due in respect of energy supplied by him. 8. If any licensee,- Penalties. (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. 9. 27[(1) The 25[State] Government may, by notification Power to make published in the 28Telangana Gazette, make rules for rules. carrying out all or any of the purposes of this Act.] 25. Substituted for the word “Provincial” by the Adaptation Order, 1950. 26. Substituted for the words “The duty” by section 3 of Madras Act II of 1943 re-enacted permanently with specified modifications by section 3 of, and the second schedule to, Act VII of 1948. This amendment should be deemed to have formed part of the Principal Act from its commencement. 27. Sub-section (1) substituted by Act No.8 of 1968. 28. Substituted by G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016. 8 [Act No.V of 1939] (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for,- (a) the time and manner of payment of duty under section 3; 29[(b) 30[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]; 29[(c)] the form of the books of account required to be kept under clause (a) of section 4; 29[(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 submitted; 29[(e)] the duties and powers of Inspecting Officers appointed under section 5; and 29[(f)] any other matter for which there is no provision or insufficient provision in this Act and for which provision is, in the opinion of the 31[State] Government, necessary for giving effect to the purposes of this Act. (3) In making a rule under sub-section (1) or sub-section (2) the 31[State] Government may provide that a breach 29. Clause (b) to (e) were re-lettered as clause (c) to (f) respectively and clause (b) was inserted by section 4 of Madras Act II of 1943 re-enacted permanently with specified modifications by section 3 of, and the second schedule to, Act VII of 1948. This amendment should be deemed to have formed part of the principal Act from its commencement. 30. Substituted for the words “refunds to the Central Government, the Federal Railway Authority and railway companies operating Federal Railways” by the Andhra (Amendment) Order, 1950. 31. Substituted for the word “Provincial” by the Adaptation Order, 1950. [Act No.V of 1939] 9 thereof shall be punishable with fine not exceeding fifty rupees. 32[(4) Every rule made under this Act shall, immediately after it is made, be laid before each House of State Legislature if it is in session, and if it is not in session in the session immediately following, for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiration 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 in the annulment of the rule, the rule shall, from the date on which the modification or annulment is notified in the 33Telangana Gazette, have effect only in such modified form or shall stand annulled, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.] 34[10. This Act shall have effect subject to the provisions of Savings. article 288 of the Constitution.] * * * 32. Substituted by Act No.8 of 1968. 33. Substituted by G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016. 34. This section was added by the Andhra (Amendment) Order, 1950.