Electricity Duty SRA

CHAPTER -1

LEGISLATIVE BACKGROUND

Legislative Provisions

1.1 The State Governments are empowered to make laws for the levy of duty and fees on the consumption or sale of Electricity under Article 246 of the Constitution of India read with entry 53 and 66 of list II (State List) of seventh Schedule. Entries 38 and 47 of list III (concurrent list) of the Schedule empower the Union Government also to make laws relating to the electrical energy and for the levy of fees thereon.

1.2 Accordingly, the levy of Electricity Duty and Fees in Madhya Pradesh is based on and regulated by the following Acts and Rules made by the Union and State Government.

(i) The Indian Electricity Act, 19101 (ii) The Indian Electricity Rules, 1956. (iii) The Electricity Supply Act, 19481. (iv) Madhya Pradesh Licensing Board (Electrical) Regulations, 1960. (v) Madhya Pradesh Government Electrical Undertaking (Dues

Recovery) Act, 1961. (vi) Madhya Pradesh Government Electrical Undertaking (Dues

Recovery) Rules 1961. (vii) Madhya Pradesh Electricity Duty Act, 1949. (viii) Madhya Pradesh Electricity Duty Rules, 1949. (ix) Madhya Pradesh Electricity Board Rules, 1957. (x) The Electricity Act, 2003

Electricity Duty 1.3 Electricity duty is a consumption tax as it is levied by the State

Government on the consumption of electrical energy for domestic as well as industrial purpose within the State. The taxable event in the case of electricity duty is not the production or generation of electrical energy but its consumption. Thus, electricity duty is a duty on consumption of electrical energy and is also leviable on electrical energy consumed in

1 Repealed by the Electricity Act, 2003

1

the production of electricity. [ Hon.Supreme Court decision in the case of State of Mysore Vs. West Coast Paper Mills Ltd. –September 1974 mentioned in Appendix-I]

CHAPTER-2

DEPARTMENTAL SET-UP

2.1 The Government of Madhya Pradesh (Electricity Department) administers the provisions of the Acts and Rules mentioned in Chapter I, through the Chief Engineer (Electricity Safety) and the Chief Electrical Inspector. He is the head of the organisational setup and is assisted by 3 Regional offices headed by Superintendent Engineers, Electricity Safety located at Bhopal, Jabalpur and Indore. These Superintendent Engineers, Electricity Safety are assisted by Division offices as per details given below:-

Sl. No. Name of Regional office Name of Division

1. S.E. Bhopal (i) Sehore (ii) Gwalior

2. S.E. Jabalpur (i) Chhindwara (ii) Rewa

3. S.E. Indore (i) Khandwa (ii) Ratlam (iii)Ujjain

Each division is under the charge of a Divisional Engineer (Electrical Safety)

Divisions are further divided into sub-divisions under the charge of an Assistant Divisional Engineer (Electricity Safety). The territorial jurisdiction of a sub-division comprises of one or more revenue districts.

2.2 The main functions of the Chief Engineer (Electricity Safety) & Chief Electrical Inspector are as under:-

(1) The Electricity Act 2003 (i) Investigation of electrical accidents and examination of causes

leading to such accidents.

(ii) Instituting prosecution against the defaulters.

(iii) Investigation into and decision on complaints and disputes between suppliers and consumers.

(2) Indian Electricity Rules 1956 (i) Periodical inspection of installations of factories, electricity

board, licensees and consumers, high and medium voltage installations and neonsigns.

(ii) Scrutiny and approval of the methods of construction of high voltage installations.

(iii) Inspection and issue of permission for commissioning of new high tension equipments.

(iv) Recovery of inspection fees.

(3) Cinematograph Regulations (i) Scrutiny of drawings for electrical installations of cinemas.

(ii) Inspection of electrical installation of cinemas and issue of fitness certificates to them.

(4) Licensing Board (Electrical) Regulations (i) To conduct examination for supervisors and wiremen.

(ii) To issue/renew licenses to contractors and permits to supervisors and wiremen.

(iii) To investigate complaints against contractors and their staff.

(5) Madhya Pradesh Electricity Duty Act 1949 (i) To see that dutiable and non-dutiable consumption and

consumptions dutiable at different rates are properly segregated and metered.

(ii) To see that electricity duty is paid correctly and properly to Government by scrutinizing periodical returns and by inspection of accounts.

(iii) To recover electricity duty and interest in cases of default.

CHAPTER-3

DEFINITIONS

3.1 The definitions of some of the words and terms given in the Electricity Act, 2003, the Indian Electricity Rules, 1956, the Madhya Pradesh Electricity Duty Act, 1949, the Madhya Pradesh Electricity Duty Rules, 1949 and the Madhya Pradesh Government Electricity Undertakings (Dues Recovery) Act, 1961 are reproduced below:-

(1) “Consumer” means any person who is supplied with electricity for his own use by a licensee or the Government or by any other person engaged in the business of supplying electricity to the public and includes any person receiving the electrical energy in bulk for onward distribution to his township or colony for consumption therein.

(2) "Distribution licensee" means licensee authorised to operate and maintain a distribution system for supplying electricity to the consumers in his area of supply.

(3) "Electricity trader" means a person who has been granted a licence to undertake trading in electricity under section 12 of the Electricity Act 2003.

(4) “Prescribed” means prescribed by rules made by the State Government under the Act.

(5) “Electrical Inspector” means a person appointed as such by the appropriate Government under section (1) of section 162 of the Electricity Act 2003 and also includes the Chief Electrical Inspector.

(6) “Electricity duty” means duty payable under section 3 of the Madhya Pradesh Electricity Duty Act, 1949.

(7) “Form” means a form prescribed by the Government under the Madhya Pradesh Electricity Duty Rules, 1949.

(8) “Government Treasury” means a treasury or sub-treasury of the Government and includes any office, branch or agency of Reserve Bank of India or any other body acting on the authority of Government and transacting treasury business for the Government.

(9) “Board” means the Madhya Pradesh State Electricity Board constituted under the repealed laws shall be deemed to be the State Transmission Utility.

(10) “Licensee” means a person who has been granted a licence under section 14 of the Electricity Act, 2003.

(11) “Producer” means subject to such rules as may be made by State Government for registration of generators, a person who generates electrical energy at a voltage exceeding hundred volts - for his own consumption or for supplying to others and in the event of generation of electrical energy by a hire of generator, the owner of generator shall be deemed to be the producer.

(12) (a) "Company" means a company framed and registered under the Companies Act 1956 and includes any body corporate under a Central, State or Provincial Act.

(b) “Director” in relation to a firm, means a partner in the Firm.

(13) "Electricity System" means a system under the control of a generating company or licensee, as the case may be having one or more

(a) Generating stations; or

(b) Transmission lines; or

(c) Electrical lines and sub stations

(14) “Occupier” means the owner or person in occupation of the premises where energy is used or processed to be used.

(15) "Trading" means purchase of electricity for resale thereof and the expression "trade" shall be construed accordingly.

(16) “Dues” means any sum payable to a Government electrical undertaking on account of:-

(i) Consumption of electrical energy supplied, or

(ii) (a) any remuneration, rent or other charges for hire, inspection, test, installation, connection, repair, maintenance or removal of any electric motor, electric machinery, control gear, fittings, wires or apparatus for lighting, heating, cooling, or motive power or for any other purpose for which electricity can or may be used,

or any industrial or any agricultural machinery operated by electricity.

(b) Price of any such goods as aforesaid taken on loan but not returned.

(17) “Debtor” means a person by whom any dues are payable.

(18) “Government electrical undertaking” means an electrical undertaking run or controlled either by the State Government or by the Board.

(19) “Prescribed authority” means any person authorised, whether by virtue of office or otherwise by the State Government by notification, to perform the functions of the prescribed authority under the M.P. Government Electrical Undertaking (Dues Recovery) Act, 1961 in and for such areas, as may be specified in the notification.

CHAPTER-4

LEVY, ASSESSMENT AND REALISATION OF

ELECTRICITY DUTY

4.1 The Madhya Pradesh Electricity Duty Act, 1949 was extended to the whole of the state Madhya Pradesh after the states re-organisation by the Madhya Pradesh Act No. 18 of 1956. Electrical energy is sold to the consumers by the State Electricity Board constituted by the State Government under the Electricity (Supply) Act, 1948 and by a licensee after obtaining a licence under the provisions of the Electricity Act, 2003. Under section 3 of the Madhya Pradesh Electricity Duty Act, 1949 as amended by the Madhya Pradesh Act No. 21 of 1978, known as Madhya Pradesh Electricity Duty (Amendment) Act, 1978, duty is levied and paid to the State Government by every distributor and every producer of electrical energy at prescribed time and in the prescribed manner, calculated at rates specified by notification in the gazette on the units of electrical energy sold or supplied to the consumer or consumed by himself for his own purpose during the preceding month except in cases specified under section 3A of the Madhya Pradesh Electricity Duty (Amendment) Act, 1978.

4.2 Electricity duty is levied and paid to the State Government in the following cases at such rate or rates as may from time to time be fixed by the State Government:

(a) Electricity energy sold or supplied for consumption for light, fans or any other appliances normally connected to a lightning circuit including the energy supplied in the premises of a factory.

(b) Electrical energy sold or supplied for the purpose of illumination on the occasion of marriages or other social functions.

(c) Electrical energy sold or supplied for consumption in township.

(d) Electrical energy sold or supplied for consumption in premises not covered under item (a) to (c) above.

Provided that if the electrical energy sold or supplied for consumption for any one purpose is used either wholly or partly without the consent of the distributor of electrical energy or producer of electricity, as the case may be, for consumption for any other purpose for which a higher rate of duty is

chargeable, the entire energy sold or supplied shall be charged at the applicable higher rate.

Rate of Duty

4.3 The rates of Electricity Duty prescribed by the Government under section 3 of the Madhya Pradesh Electricity Duty Act, 1949 and applicable with effect from 1 April 1978 and thereafter revised by the Government from time to time are given in the Appendix-II to this manual.

Exemption

4.4 (a) The State Government may, in public interest, having regard to the prevailing charges for the supply of energy in any area, the generating capacity of the plant and need to promote industrial production etc., allow the whole or in part exemption from payment of duty. [The cases in which the State Government have made exemption from payment of duty are enumerated in section 3-A of the Electricity Duty Act, 1949.]

(b) No Electricity Duty shall be payable in respect of electrical energy-

(i) sold or supplied to the Government of India for consumption by that Government:

(ii) sold or supplied to the Government of India or a railway company for consumption in the construction, maintenance or operation or maintenance of any railway administered by the Government of India;

(iii) sold or supplied to the State Government for consumption by that Government;

(iv) sold or supplied to any local authority for consumption in public street lamps or lamps in any market places or other places of public resort maintained by such authority;

(v) sold to or used by an agriculturist for consumption in pumping of water and irrigation of his land or in chaff cutting or in crushing or treating the produce of his land;

(vi) used for consumption in the maintenance or operation of power stations and for consumption in the power house

auxiliaries but excluding the portion of the energy consumed for generating process steam supplied from such power station, whether directly from the boiler house or through a passout turbine.

(c) Power to exempt-Where the State Government is of opinion that:-

(i) In order to encourage the establishment of any particular industry or class of industries in the State; or

(ii) having regard to the particular circumstances of any industry or class of industries; or

(iii) in order to extend facilities to such persons or class of persons and for such purposes as the State Government may, by notification, specify;

it is necessary or expedient to do so in public interest; it may, by notification and subject to such conditions, if any, as it may specify in the notification:

(1) exempt from payment of duty in whole or in part.

(i) any distributor of electrical energy or producer in respect of the electrical energy sold or supplied to such industry for the purpose thereof;

(ii) where any producer or class of producers runs the industry, in respect the electrical energy consumed by such producer or class of producers for the purpose of such industry;

(iii) any distributor of electrical energy or producer in respect of electrical energy sold to or used for consumption by person or class of persons and for purposes specified in the notification;

(2) cancel any such notification and again subject, by a like notification, the distributor of electrical energy or producer or class of such producers to the payment of such duty in respect of such sale, supply or consumption of electrical energy.

(d) Whereas, the State Government is of the opinion that having regard to the particular circumstances of the classes of industries specified in the Schedule below, intend to establish their own generating stations for the

purpose of consumption of electrical energy by such industries, it is necessary and expedient in the public interest.

Now, therefore in exercise of the powers conferred by Section 3-B of the Madhya Pradesh Electricity Duty Act.1949, (No. X of 1949), the State Government hereby exempts the industries of the aforesaid classes from payment of electricity duty for first 5 years from the date of generation of electrical energy by the generating stations installed by the said industries on or after the date of publication of this notification in the Gazette subject to the condition that the aggregate capacity of the generating station shall not be less that 1750 KVA and more than 5000 KVA.

Provided that exemption under the notification shall not be available-

(i) in respect of the electrical energy generated by the set installed on or after the said date as replacement of the old set;

(ii) to those producers who will establish their own generating station on or after the said date in addition to the generating station established before the said date and are generating electricity; and

(iii) in respect of the subsequent generating station established after the said date by such producer who have already a generating station on the date of such establishment.

SCHEDULE

1. Steel industries 2. Mines 3. Textile and spinning industries 4. Rolling industries 5. Cement industries 6. Paper industries 7. Chemical industries 8. Caustic Soda industries 9. Oxygen, Nitrogen –Acetelene industries 10. Engineering and automobile industries 11. Steel casting industries 12. Oil industries

(e) In exercise of the powers conferred by Section 3-B of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State Government hereby cancel this Department's Notification No.5857-F-10-2-XIII-9-, dated 6th November, 1992.

Provided that the exemption available to the producers under the said notification who have already established generating set/power plant shall remain available upto the expiry of the period of exemption.

Provided further that the exemption shall not be available to any generating set/power plant installed is replaced during such exemption period.

(f) No. 2775/F-13/180/13/99 - Where as the State Government is of the opinion that in order to encourage the manufacturing of components and allied materials required for information technology by the industries in the State, it is necessary and expedient so to do in the public interest:

Now, therefore, in exercise of the powers conferred by Section 3-B of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State Government hereby exempts from payment of electricity duty the electrical energy sold or supplied by any distributor of electrical energy to such new industries as specified in Annexure-I of the Madhya Pradesh Commerce and Industry Department Notification No. F-16-8/11/D/99 dated 28.1.2000 for a period of five years from the date of their production.

(g) No.7-86-13-2001- Whereas the State Government is of the opinion that it is necessary to do so in the public interest:

Now, therefore, in exercise of the powers conferred by section 3-B of the Madhya Pradesh Electricity Duty Act, 1949 (X of 1949), the State Government hereby exempts the Madhya Pradesh State Electricity Board, Board constituted under section 5 of the Electricity (Supply) Act, 1948 (No.54 of 1948) and the generating companies established which takes over any of the generating stations of Madhya Pradesh State Electricity Board pursuant to any Transfer Scheme that may be issued under the Madhya Pradesh Vidhyut Sudhar Adhiniyam, 2000 (No. 4 of 2001) from the whole of the duty payable under the Madhya Pradesh Duty Act, 1949 in respect of electricity consumed by the Madhya Pradesh State Electricity Board or the successor generating company, as the case may be, as auxiliary consumption connected to the generating stations.

(h) F-1475-XIII-2002- Whereas, the State Government is of the opinion that, in order to encourage the establishment of the non-conventional energy sources of power in the State, it is necessary and expedient so to do in public interest;

Now, therefore, in exercise of the powers conferred by Section 3-B of the Madhya Pradesh Electricity Duty Act 949 (No. X of 1949) and in suppersession of this department Notification No. III/90 dated 6th November, 1992, the State Government hereby exempts wholly, any person, industry or class of industries, institution or private agency producing electrical energy sold or supplied to other or consumed by himself for his own purposes by installation of a power generating unit on or after 7th July, 1994 based on non-conventional energy sources (mini-micro hydel projects, wind energy, bio-energy, solar energy etc.) from payment of electricity duty, for a period of 5 years from the date of generation of electrical energy by such power generating unit.

(i) No.5691 - XIII 2004:- Whereas, the State Government is of the opinion that having regard to the particular circumstances of the person, class of persons, industry or class of industries who intend to establish captive power plants in the State, it is necessary and expedient to do so in the public interest.

Now therefore, in exercise of the powers conferred by section 3-B of the Madhya Pradesh Electricity Duty Act, 1949 (X of 1949), the State Government hereby exempts wholly, any person, class of persons, industry or class of industries who generate electrical energy by captive power plants as specified in column (2) of the Schedule below, where in the substantial work starts within one year of installation of captive power plants and the commencement of generation of electrical energy for self consumption takes place within the period specified in column (3) of the Schedule, from the payment of electricity duty for a period as specified in column (4) of the said Schedule , subject to the following conditions namely:-

1. This exemption shall be available on the generation of electrical energy only for self consumption.

2. Any person, class of persons industry or class of industries, after installation of the captive power plant of more than 10 KW shall obtain

a certificate of eligibility for exemption from payment of electricity duty from the Electrical Inspector concerned and shall be entitled for exemption only on the basis of such certificate .

3. As provided above, the exemption shall not be available to any other captive power plants installed in the replacement of old ones .

SCHEDULE

S.No. Type of the captive power plant

Period of commencement of generation of electrical energy

Period of exemption from payment of electricity duty

1 2 3 4 1 Gas based plant within 2 years 5 years from the date of

commencement of generation of electrical energy by the plant.

2 Hydel/ thermal/ other type of power plant

within 3 years 5 years from the date of commencement of generation of electrical energy by the plant.

(j) No. 3346 /13/2006 in exercise of powers conferred under section 3-b of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State Government hereby makes the following amendments in this Department Notification no. 5691-XIII-2004 dated 29, September, 2004 published in the Madhya Pradesh Gazette dated 08 October 2004 namely :-

Amendment

In the said notification after condition 3, the following shall be added namely :-

4. The captive power plant shall be eligible for exemption from payment of electricity duty for a period of five years from the date on which plant obtains the full load working capacity, that is,when it gets the normal rated full load output capacity or 180 days from the date of trial run production, whichever is earlier it shall be necessary that the generator reading shall be noted on full working capacity of plant in presence of the officers of Madhya Pradesh State Electricity Board or the Electrical Inspectorate.

(k) No. 4075-F-16-26-05-B-XI-XIII:-

Bhopal, the 30th June 2006.

Whereas, the State Government is of the opinion that having regard to the particular circumstances of the production of Caustic soda industries established in the state, it is necessary and expedient to do so in the public interest.

Now, therefore, in exercise of the powers conferred by section 3-b of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State Government hereby grants exemption of 4 per cent in payment of electricity duty from existing 8 per cent per unit of tariff of concerned Madhya Pradesh Vidyut Vitran Company Limited on self consumption of electrical energy generated from captive power plant by the industries, whose expenditure on electrical energy, is 50 per cent or more of total production cost subject to following conditions, namely :-

(i) During beginning of every financial year, it shall be necessary to submit a certificate of Chartered Accountant of the company in the office of the Electrical Inspector concerned regarding expenditure of 50 per cent or more of total production cost on electrical energy in the industry.

(ii) If there shall be any change in percentage of consumption of electrical energy of total production cost during intervening period of financial year, the same shall be intimated to the Electrical Inspector concerned immediately.

(iii) For claiming above exemption during current financial year, above certificate from Chartered Accountant shall be submitted to the Electrical Inspector concerned immediately after publication of this notification.

4.5 Every distributor of electrical energy and every producer shall pay the electricity duty in respect of each month before the expiry of the following month into a Government treasury to the credit of Government under the appropriate major head of Account and send the treasury receipt (challan) to the Electrical Inspector within fifteen days from the date of such credit.

Recovery of duty from consumer by distributors of electrical energy (Rule 4 of M. P. Electricity Duty Rules, 1949)

4.6 A distributor may recover from those consumers whose consumption is dutiable, as a surcharge the whole or part of the duty payable by him under section 3 of the Madhya Pradesh Electricity Duty Act, 1949. The distributor shall show separately the amount of surcharge levied by him in the bills that are sent by him to the consumers. In case of dispute regarding the amount of surcharge to be levied, the matter shall be referred to the Electrical Inspector for decision.

Refund of duty paid in excess (Rule 4-A of M.P. Electricity Duty Rules, 1949)

4.7 The distributor of electrical energy or the producer shall, with the prior approval of the Inspector, refund or make adjustments for electricity duty collected wrongly from a consumer or paid in excess by him. The application for refund/adjustment shall be made in the prescribed form under rule 4-A of Madhya Pradesh Electricity Duty Rules, 1949.

Recovery of duty and Interest (Rule 5 of M.P. Electricity Duty Rules 1949)

4.8 If the duty due is not paid within the period specified under rule 3 of the Madhya Pradesh Electricity Duty Rules, 1949 the same shall be paid thereafter with interest thereon at the rates as may be fixed by the State Government by notification from time to time.

Without prejudice to any other mode of recovery available to the State Government,any duty falling due for payment and the interest accruing thereon, if any, may be recovered in the same manner as an arrear of land revenue under section 5 of Madhya Pradesh Electricity Duty Act, 1949.

Recovery of dues etc. if not paid (Section 6 of M. P. Government Electrical Undertaking (Dues Recovery) Act, 1961)

4.9 (1) If the aggregate account of various dues, penalty and costs mentioned in the notice of demand served under section 4 is not deposited with the prescribed authority within three months of the date of such service or such extended period as the prescribed authority may allow, the debtor shall be deemed to be in default in respect of such amount and the same shall be

recoverable as an arrear of land revenue, anything contained in any other law or instruments, or agreement to the contrary notwithstanding..

(2) For the purpose of such recovery, the prescribed authority may forward to the Collector a certificate under his signature in the prescribed form stating the amount and details of the demand and the name and description of the debtor in default and the Collector shall on receipt of such certificate, take action to recover from the debtor the amount of the demand as if it is arrears of land revenue.

CHAPTER – 5

LEVY ASSESSMENT AND REALISATION OF FEES

Levy of fees

5.1 Under the provision of the Indian Electricity Act, 1910 repealed by Electricity Act, 2003 and in exercise of the powers conferred by sub-rule 2 of the rule 7 of the Indian Electricity Rule, 1956, certain fees are leviable and payable to the Government of Madhya Pradesh which are set forth below:-

a. Initial Inspection Fee – The Indian Electricity Rules, 1956 provide that before a supplier commences supply of energy at high or extra high voltage to any person, the Electrical Inspector shall inspect the installation and satisfy himself about the fulfillment of all the various provisions regarding the installations. Where the installation is already connected to the supply system of the supplier, every such installation shall be periodically inspected and tested at intervals not exceeding five years either by the Inspector or supplier, as may be directed by the Government.

b. Inspection fee – For the inspection by the Inspector, the consumer has to pay a fee at such rate as the Government may from time to time prescribe. The current rates of fee prescribed by the Government in 1978 and further revised in 1987 are given in Appendix III (a) and III (b). The fee shall be payable in advance. In the event of failure to pay the fees on or before the date specified in the notification, the supply of energy to the installation of such consumer shall be liable to discontinued under the direction of the Inspector. Such disconnection, however, shall not be made by the supplier without giving to the consumer seven days notice in writing of his intention to do so.

c. Period of Inspection – The categories of the unit which are to be inspected periodically by the Electrical Inspectors and prescribed period of interval are given in Appndix III.

d. Fee for grant or renewal of Electrical Contractors Licence – No person shall act as an electrical contractor or undertake any work for which he is not authorised unless he holds a licence under the M.P Licensing Board (Electrical) Regulations, 1960. The licence granted or renewed shall expire at the end of the Calendar year and shall be renewable thereafter after deposit of the prescribed renewal fee. The scale of fee prescribed for the purpose is given in rule 34 (c) of the Madhya Pradesh Licensing Board (Electrical) Regulations, 1960.

Audit Fee

5.2 Audit fees, travelling allowance and daily allowance are payable at the prescribed rate by the licensee, who is not a local authority, for audit of his accounts as provided in the Electricity Act 2003. This audit of the books of the licensee is conducted by the Electrical Inspectors Organisation.

Fees for settlement of disputes

5.3 Wherein Inspector is called in to decide any difference or dispute between the licensee or appointed authority and their consumers regarding the rate of levy of electricity duty or the amount of electricity duty realised or payment of prescribed fees, the Inspector shall decide by whom such fee shall be payable.

Fees for examination, issue and renewal of supervisor’s certificates and wireman’s permits

5.4 The Chief Electrical Inspector grants certificates to the supervisors and permits to wiremen on payment of fees after conducting such examination as he may deem necessary. The certificates and permits are required to be renewed at intervals of three years for which renewal fee is payable at the prescribed rates.

Grant of duplicate certificate of competency and permit to supervisors and certificates and permits to wiremen

5.5 A duplicate certificate of competency or permit of supervisor or certificate or permit of wiremen shall be issued on payment of prescribed fee and on production of proof of loss of the original certificate.

Grant of duplicate contractor’s licence

5.6 A duplicate copy of a licence granted to contractor shall be issued on payment of the prescribed fee and on production of proof of loss of the original licence.

Refunds

5.7 In cases where the amount of electricity duty, fee, fines or penalty has been deposited in the Government treasury in excess of the amount due and payable, it shall not be adjusted by the depositor unless refund of such excess amount has been authorized by the competent authority in writing.

CHAPTER – 6

OFFENCES, PENALTIES, FINES AND APPEALS

6.1 The following acts and/or omissions of any distributor of energy or any producer or consumer shall be punishable with fine which may extend to “one thousand rupees” (Section 8 of the M.P. Electricity Duty Act 1949).

(a) Failure to keep any books, accounts or records or to furnish returns in accordance with any rule framed under section 6, or.

(b) intentional creation of obstruction to an Inspector appointed under section 7 in the performance of his duties or the exercise of his powers under this Act or the rules made thereunder.

Offences by companies

6.2 (1) If a person committing an offence under Electricity Act, 2003 is 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, 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 any thing contained in sub-section (1) where an offence under this Act has been committed with the consent or is attributable to any action on the part of any director or 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.

6.3 The Electricity Act, 2003 and the Indian Electricity Rules, 1956 provide for imposition of fine and punishment for the offences mentioned below:-

1. Penalty for theft of electricity:- If a person having been convicted of

an offence of theft of electricity shall be punishable with imprisonment for a

term which may be extended to three years or with fine or with both:

Provided that in case where the load abstracted, consumed or used or attempted

abstraction or attempted consumption or attempted use-

(i) does not exceed 10 kilowatt the fine imposed on first conviction shall

not be less than three times the financial gain on account of such theft of

electricity and in the event of second or subsequent conviction the fine

imposed shall not be less than six times the financial gain on account of

such theft of electricity.

(ii) exceeds 10 kilowatt, the fine imposed on first conviction shall not be

less than three times the financial gain on account of such theft of

electricity and in the event of second or subsequent conviction, the

sentence shall be imprisonment for a term not less than six months but

which may extend to five years and with fine not less than six times the

financial gain on account of such theft of electricity.

(Section 135 of the Electricity Act, 2003)

2. Theft of electric lines and materials:- (i) If a person has committed

an offence of theft of electric lines and materials he shall be punishable with

imprisonment for a term which may extend to three years or with fine or with

both.

(ii) If a person having been convicted of an offence punishable under sub

section (i) is again guilty of an offence punishable under the sub-section,

shall be punishable for the second or subsequent offence for a term of

imprisonment which shall not be less than six months but which may

extend to five years and shall also be liable to fine which shall not be

less than ten thousand rupees.


3. Punishment for receiving stolen property:- Whoever, dishonestly

receives any stolen electric line or material knowing or having reason to

believe the same to be stolen property, shall be punishable with imprisonment

of either description for a term which may extend to three years or with fine or

imprisonment with both.


4. Penalty for interference with meters or works of licensee:- If a

person having been convicted for an offence of interference with meters or with

works of licensee, shall be punishable with imprisonment for a term which may

extend to three years, or with fine which may extend to ten thousand rupees, or

with both, and, in case of continuing offence with a daily fine which may

extend to five hundred rupees.


5. Negligently breaking or damaging works:- Whoever, negligently

breaks, injuries, throws down or damages any material connected with the

supply of electricity, shall be punishable with fine which may extend to ten

thousand rupees.


6. Penalty for intentionally injuring works:- Whoever, with intent to

cut off the supply of electricity, cuts or injuries, or attempts to cut or injure, any

electric supply line or works, shall be punishable with fine which may extend

to ten thousand rupees.


7. Penalty for extinguishing public lamps:- Whoever, maliciously

extinguishes any public lamp shall be punishable with fine which may extend

to two thousand rupees.


8. Punishment for non-compliance of directions by appropriate

commissions:- If any person has contravened any of the provisions of this

Act or the rules or regulations made thereunder, the appropriate commission

may after giving such person an opportunity of being heard in the matter, by

order in writing, direct that without prejudice to any other penalty to which he

may be liable under this Act, such person shall pay, by way of penalty, which

shall not exceed one lakh rupees for each contravention and in case of a

continuing failure with an additional penalty which may extend to six thousand

rupees for each day during which the failure continues after contravention of

the first such direction.


9. Punishment for non compliance of order or directions:-Whoever,

fails to comply with any order or direction given under this Act, or any rules or

regulations made thereunder, shall be punishable with imprisonment for a term

which may extend to three months or with fine, which may extend to one lakh

rupees, or with both. In case of continuing failure, with an additional fine

which may extend to five thousand rupees for every day during which the

failure continues after conviction of the first such offence.


10. Penalty for breach of rule 44-A:- where in contravention of rule 44-A,

any person responsible for the generation, transformation, transmission,

conversion, distribution, supply or use of energy fails to report to the

inspector and other authorities concerned, the occurence of such

accidents, such person shall be punishable with fine which may extend

to three hundred rupees.

(Rule 138-A of the Indian Electricity Rules 1956)

11. Penalty for breach of rules :- Any person other than an inspector or

any officer appointed to assist the inspector who being responsible for

the observance of any of these rules commits a breach thereof, shall be

punishable for every such breach with fine which may extend to three

hundred rupees, and in the case of continuing breach with a further fine

which may extend to fifty rupees, for every day after first day during

which the breach has continued.

(Rule 141 of the Indian Electricity Rules 1956)

12. Penalties for breach of rule 45 :- In case of erection of electrical

installations by unqualified and unauthorised persons in contravention of

rule 45 (i) of the Indian Electricity rules, 1956, the consumer or owner,

or occupier, the contractor (if any), or the person through whom the

work is being or was carried out and the person under whose immediate

supervision the work is being or was carried out, each shall be

punishable with fine which may extend to three hundred rupees.

(Rule 139 of the Indian Electricity Rule, 1956)

13. Penalty for breach of rule 82- Erection without notice of a new

building or structure (Permanent or temporary) or alteration of an

existing building or structure subsequent to erection of overhead line

will make the person making/proposing and the contractor executing the

erection/alternation, liable to pay a fine which may extend to three

hundred rupees.

(Rule 140 of the Indian Electricity Rule 1956)

6.4 Penalties not to affect other liabilities:- The penalties imposed

under this Act are in addition to and not in derogation of any liability.


6.5 Penalties where works belong to Government:- The provisions

of this Act shall, so far as they are applicable, be deemed to apply also

when the acts made punishable thereunder are committed in the case of

electricity supplied by or of works belonging to the appropriate

Government.


6.6 Recovery of Penalty payable under this Act:- Any penalty payable by

a person under this Act, if not paid, may be recovered as arrears of land

revenue.


Appeals

6.7 - An appeal against an order served under sub-rule (4) of rule 5 of Indian

Electricity Rules, 1956 shall lie,

(a) if the order is served by an officer appointed to assist an inspector;

(b) if an order is served by an inspector, to the Central Government or the

State Government, as the case may be;

(2) in the case of an order of an inspector on an appeal preferred to him

under clause (a) of sub rule (1) above, a further appeal shall lie to the

Central Government or the State Government as the case may be;

(3) every appeal shall be in writing, shall be accompanied by a copy of the

order appealed against and shall be presented within three months of the

date on which such order has been served or delivered or is deemed to

have been served or delivered as the case may be.

CHAPTER - 7

RECORDS AND RETURNS

Books of Accounts

7.1 The State Government has prescribed that the books of accounts kept by the licensee, appointed authority and other person at local offices, under section 6 of the M.P. Electricity Duty act, 1949, shall contain the following particulars.

(a) Details including meter readings to show the amount of energy generated, purchased, distributed and consumed.

(b) Name and service connection number of the person consuming or supplying energy.

(c) Brief description of the premises where the energy is consumed or supplied and the purpose for which energy is consumed.

(d) Date and month of recording meter reading and the units supplied or consumed, separately for each category.

(e) Rates of supply for each category.

(f) Details of the energy generated, supplied or consumed in each category which is exempt from duty under the M.P. Electricity Duty Act, 1949.

(g) Amount of duty payable and the amount deposited and its particulars.

(h) Date of depositing the duty and the number of the treasury challans through which it has been deposited.

(i) Amount of duty realised from the consumers and its particulars.

Particulars to be kept by the Licensee, the Board and other persons

7.2 (i) Particulars of the amount of interest payable for not depositing the amount of electricity duty in time.

(ii) Date of depositing the amount of interest and the number of treasury challans through which it has been deposited.

(i) Particulars of the amount deposited and penalty imposed for evading or attempting to evade payment of duty.

(ii) Date and number of treasury challans through which the amount of penalty imposed has been deposited.

Submission of Returns

7.3 Every distributor of electrical energy and every producer shall submit to the Electrical Inspector –

(j) alongwith the treasury receipt required under rule 3 of the M.P. Electricity Duty Rules, 1949, a return for each month in Form ‘G’.

(ii) at the end of the financial year, a return in Form ‘H’ ‘J’ and ‘K’ not later than 15th day of the second month following the last day of the said financial year.

7.4 (a) Record to be maintained by the licensees – In order to comply with the aforesaid provisions the following records are required to be maintained by the licensee ;_

(i) Meter reading book (ii) Bill books (iii) Ledger (iv) Agreement file (v) Electricity Duty file (vi) Summary of consumers ledger (vii) Application for first connection (viii) Duty register and challans showing deposit of duty (b) Records to be maintained by units of the M.P. State Electricity Board Assessment record

(i) Meter reading book (ii) Bill list cum bill summary or bill book (iii) Consumers ledger Realisation record

(i) Daily credit list and balancing statement (ii) Notice list (iii) Unpaid outstanding list

Misc. records

(i) Cash Book

(ii) Summary of duty collected

(iii) List of consumers exempted from electricity duty

(iv) Remittance record

(v) Disconnection ledger

(vi) Paid duty register

Records of Chief Electrical Inspector

7.5 Some of the important records and returns relating to assessment and collection of electricity duty and fees that are maintained in the office of the Chief Electrical Inspector and his subordinate offices are mentioned below:-

(a) Records maintained in the subordinate offices

(i) Whereas the records relating to electricity duty are maintained by the suppliers, the records relating to fees are maintained in the subordinate offices. The prescribed fees are deposited by challans by the parties concerned and a copy of each of the challan is sent to the office of the Electrical Inspector concerned, who maintains a consolidated account of all such receipts accruing in his jurisdiction. For this purpose, he maintains the following records:-

1. Consolidated Revenue Register 2. Medium and High Pressure installation register 3. Cinema register 4. General register of Inspection 5. Periodical Inspection register 6. Register of Neonsigns and X-rays 7. Register of accidents 8. Electricity duty register 9. Register of recovery of outstanding electricity duty 10. Register for refund of electricity duty 11. Copies of monthly treasury challans received from licensees, etc.

12. Annual returns in prescribed form received from licensees 13. Half yearly returns received from licensees (ii) The Divisional Electrical Inspectors and Electrical Inspectors

submit the following returns to the Chief Electrical Inspector :-

(1) Monthly statement of electricity duty collected by the distributing centres of the divisions of the Madhya Pradesh State Electricity Board (M.P.S.E.B).

(2) Monthly statement of inspections and results thereof.

(3) Monthly statement of revenue (electricity duty).

(iii) Half yearly and Annual returns- While conducting the audit of the offices of Divisional Electrical Inspectors, the accounts of the energy generated and consumed during production of energy, dutiable consumption of energy and electricity duty payable/paid ,should be checked with reference to the Half yearly/Annual returns.

(iv) Records maintained in the office of the Chief Electrical Inspector :- Records pertaining the fees for the examination and issue of supervisor’s certificates and wireman’s permits and fees for grant/renewal of licences of electrical contractors, are maintined in the office of the Chief Electrical Inspector. The record is in the form of division-wise registers which are posted from treasury challans.

(v) Demand and collection register of audit fees, traveling allowance and daily allowance – The accounts in respect of audit fee, travelling allowance and daily allowance (chargeable from licensee in terms of the Electricity Act 2003 are maintained by the Audit Officers attached to the Chief Electrical Inspector in a register called the Demand and collection register of audit Fees, traveling allowance and daily allowance.

(vi) Revenue records and reconciliation – The following records are maintained in the office of the Chief Electrical Inspector for consolidation and reconciliation of entire revenue receipt (viz. Fees, Electricity duty, interest, fines and penalties) of the State:-

(1) Consolidated revenue register – This register is posted from the revenue statements received from Divisional offices.

(2) Register of posting of treasury challans – It is posted from departmental copies of treasury challans received from the treasury officers.

(vii) Important revenue records in the office of the Divisional Electrical Inspectors – The Divisional Electrical Inspectors maintain the following revenue records :-

(1) Register of challans of monthly collections of electricity duty.

(2) Register of monthly demands of arrears of electricity duty.

(3) Register of monthly demands of interest of electricity duty.

(4) Register of monthly refunds/adjustments of electricity duty.

(5) Register of local inspection for check of demand and collection of electricity duty.

CHAPTER – 8

AUDIT CHECKS

8.1 In the audit of receipt and refunds of electricity duty and fees, the accounts and records maintained in the following offices are checked :-

(a) Licensees and Appointed Authorities

(b) Divisional offices in the charge of the Divisional Electrical Inspectors

(c) Sub-divisions in the charge of Assistant Electrical Inspectors

(d) Chief Electrical Inspector

8.2 The initial account records relating to the levy, assessment and payment of electricity duty are maintained in the offices of the Licensees and the Appointed Authorities and those relating to fees in the offices of the Electrical Inspectors and Chief Electrical Inspector.

Licensees and Appointed Authorities

8.3 The following records should be examined during audit in the offices of the Licensees and Appointed Authorities.

(i) Meter reading Book-Whether the units of energy consumed as shown in the meter reading book have correctly been worked out with reference to the previous readings.

(ii) Consumers ledger (Bill List )

(a) Whether units shown in the meter reading book have correctly been noted in it.

(b) Whether electricity duty has been correctly charged on the basis of the various scales of charges for energy consumed.

(c) In the case of bulk supply, whether the rates are in conformity with the agreement.

(d) Whether exemptions from electricity duty have been correctly allowed.

(e) Whether energy charges have been levied at the rates approved by the Government.

(f) Whether the monthly units of electricity generated and supplied as shown in the records of the electricity supply companies or undertakings

tally with those intimated to the Divisional Officers in the returns furnished.

Checking of realisation

8.4 (a) Whether the amounts shown as realised in the “Daily credit list” agree with the amounts billed for.

(b) Whether total daily receipts as per daily credit list agree with the cash statement.

(c) Whether the totals of monthly collections tally with the amount as shown in the summary of duty collected.

(d) Whether the total amount shown in the paid duty register has been remitted into the treasury.

(e) Whether the figures of collection of duty agree with the figures intimated to the Divisional offices in the returns furnished.

(f) Whether the duty was deposited in time, if not whether interest was charged and recovered within the prescribed time.

(g) Electricity duty has to be paid in respect of supply of energy to autonomous bodies, cooperative societies and similar other bodies being non-government bodies. It should be seen whether electricity duty has been paid on these supplies.

(h) If the ‘rates charged' include any surcharge on the rate of energy charged, it should be seen whether for the purposes of levy of electricity duty, the surcharge has also been included in the rate charged.

(i) whether electricity duty has been paid at normal rates applicable in respect of consumers to whom the energy is supplied free of charge or at concessional rates by a licensees of Madhya Pradesh State Electricity Board.

(j) In the case of Defence personnel, whether meters in the residential premises stand in the name of individual consumers and supply of energy is free to them. It should be seen whether the electricity duty at normal rates was paid in respect of such consumers.

(k) Whether meters have been installed for generation and consumption of energy in auxiliaries. In cases where meter for generating energy have not been installed it should be seen whether the percentage of energy shown as

consumed in the process of generation was not in excess of the norm fixed by the Madhya Pradesh State Electricity Board to its units.

Examination of records in the office of the Divisional Electrical Inspectors

8.5 (i) Whether the treasury challans received from licensee etc. in support of the electricity duty or fee have been correctly posted.

(ii) Whether inspections of electricity installations by the divisional staff have been carried out only after payment of prescribed fees. This should be checked with reference to subsidiary registers e.g. Permanent Installation Register, Cinema Register, Temporary Installation Register etc. Whether fees for the initial or periodical inspections were charged at the prescribed rates.

(iii) Whether notices for periodical inspections were issued in time in each case, where it was due.

(iv) Whether electricity duty has been realised as and when due from persons consuming energy from their own source of generation.

(v) Whether the refunds allowed were sanctioned by the competent authority and that the amount refunded was actually initially deposited by the person concerned. This should be seen with reference to original treasury challans.

(vi) Whether the amount of electricity duty reported by licensees to have been deposited by them, agrees with he amount received in the Divisional offices. This should be checked with reference to the periodical returns.

Examination of records in the office of the Chief Electrical Inspector

8.6 (i) Whether the fees for examination, issue and renewal of supervision certificates and wireman’s permit grant/renewal of electrical contractors licence etc. have been charged correctly and accounted for.

(ii) Whether the treasury challans received in respect of fees have been posted correctly in the prescribed registers.

(iii) Refunds of electricity duty are allowed by the Chief Electrical Inspector. The refund cases should be examined to see whether refunds have been properly sanctioned.

8.7 A demand and collection register of audit fee, traveling allowance and daily allowance is maintained by the Audit Office attached to the Chief Electrical

Inspector. It should be seen whether audit fee etc. are being charged according to the prescribed rates and the same are being properly accounted for.

APPENDIX I

(Reference .. Para 1.3)

SUPREME COURT DECISION

Mysore Electricity Act

VI/III-B/48-State of Mysore

Vs.

West Coast Paper Mills Ltd.

Date of Judgment – 24.09.1974

Mysore Electricity (Taxation Consumption) Act. 1959 (Mysore Act 14 of 1950) – Section 2 clause (i) whether electricity tax is chargeable on the quantity of electrical energy lost in the course of transmission. Whether the respondent is liable to pay the tax on the quantity used by it for generating further electricity.

Held that tax is payable in respect of energy consumed for generating further electricity but no tax is payable in respect of energy lost during transmission.

The one question with which we are concerned in this appeal is whether electricity tax is payable in respect of the electrical energy which is lost in transmission as a result of transmission loss or transformer loss. So far as this question is concerned, we are of the view that no tax is payable on the electricity so lost. The entire scheme of the Act is to tax the consumption of electrical energy. Where some energy is not consumed but lost before it reaches the point of consumption, the question of levy of tax on consumption of such energy would not in very nature of things arise. The place of consumption of electrical energy is normally at some distance from the place where electrical energy is generated. Electrical energy has consequently to be transmitted through metal conductors to the place where it is consumed. Such transmission admittedly entails loss of some electrical energy and what is lost can plainly be not available for consumption and as such would not be consumed.

We are, however, unable to agree with the High Court that no electricity tax is payable by the respondent company in respect of the electrical energy used by it for generating further electrical energy. Electrical energy can be consumed

for a variety of purposes. The fact that such energy has been used not for manufacturing some other article but for generating further electricity would not go to show that such energy has not been consumed. What we are actually concerned with under the Act is the consumption of electrical energy. The use of electrical energy would none the less be consumption of such energy even though it has been consumed in operating the operations for generating further electrical energy. The purpose for which the energy has been consumed would not make any material difference for the purpose of the levy of tax under the Act.

We, therefore, partially accept the appeal and hold that electricity tax under the Act is payable in respect of electrical energy consumed for generating further electricity. No such tax, is, however, payable in respect of electrical energy lost as a result of transmission loss and transformer loss. The judgment of the High Court is modified accordingly.

APPENDIX II (A) (Table)

(Reference Para 4.3) RATES OF DUTY

(1)

Electrical Energy sold or supplied for Consumption in premises used -

(a) for business, trade or commercial purpose or for purposes of professional pursuits other than for flour mills

8 paise per unit of energy upto 50 Units of energy sold or supplied in a month

10 paise per unit for each additional unit sold or supplied in a month in excess of 50 units but not in excess of 100 units of energy.

12 paise per unit for each additional unit in a month in excess of 100 units of energy.

(b) for flour mills. 2 paise per unit of energy

(2) Electrical energy sold or supplied for consumption in premises of a factory excluding energy supplied for consumption for domestic or non-factory purposes where the connected load -

(a) does not exceed 100 HP 1.5 paise per unit of energy.

(b) exceeds 100 HP 3 paise per unit of energy

(3) Electrical energy sold or supplied for purpose of illumination on the occasion of marriages or other social functions.

65 paise per unit of energy upto 50 units of energy sold or supplied on any one occasion. Re. 1 per unit for each additional unit sold or supplied on any one occasion in excess of 50 units but not in excess of 100 units of energy

Rs.2.50 per unit for each additional unit sold or supplied on any one occasion in excess of 100 units of energy

(4) Electrical energy sold or supplied for consumption -

(a) a township or colony attached to a factory, mine or institution; or

10 paise per unit of energy

(b) a premises getting supply at high voltage or extra high voltage but not covered under items (1) and (2) above

-do-

(5) Electrical energy sold or supplied for consumption in premises and for purpose not covered under items (1) to (4) above

6.5 paise per unit of energy upto 50 units of energy sold or supplied in a month. 7 paise per unit for each additional unit sold or supplied in a month in excess of 50 units but not in excess of 150 units of energy. 12 paise per unit for each additional unit sold or supplied in a month in excess of 150 units of energy

Provided that if the electrical energy sold or supplied for one purpose is used either wholly or party without the consent of the distributor of electrical energy or producer of electricity, as the case may be, for consumption for any other purpose for which a higher rate of duty is chargeable, the entire energy sold or supplied shall be charged at the highest rate applicable.

Explanation:- For the purpose of section 3 :

(a) ‘month’ means such period as may be prescribed and till such period is prescribed, the billing month.

(b) ‘Premises’ used for business, trade, commercial purposes or professional pursuits shall include the premises used –

(1) for the purposes of mines to which Mines Act, 1952 (No. 35 of 1952) applies.

(2) For the purposes of industries which do not require raw materials for carrying on the industries but which are carried on for rendering services such as flour mill, repairs workshop and the like and are not registered as factories under the Factories Act, 1948 (no. 63 of 1948).

(c) 'Factory’ means a factory registered under the Factories Act, 1948 (No. 63 of 1948) and includes premises used for the purposes of Industries which require raw materials for carrying on the manufacturing process and prepare finished goods for sale.

APPENDIX II – B (1)

Extra Ordinary Gazette Notification No.2070

Madhya Pradesh Electricity Duty (Amendment and Validation) Ordinance 1984 (effective from 1.10.1984)

(d) in the table of rates or duty for item (5) the following items shall be substituted namely:

(5) Electrical energy sold or supplied for consumption in a mine


(6) Electrical energy sold or supplied in bulk by a producer or distributor of electrical energy, to another distributor of electrical energy excluding electrical energy supplied for his township or colony


(7) Electrical energy sold or supplied for consumption in premises and for purpose not covered under items (1) to (6) above

6.5 paise per of energy upto 50 units of energy sold or supplied in a month

7 paise per unit of or each additional unit sold or supplied in a month in

excess of 50 units but not in excess of 150 units of energy

12 paise per unit for each additional

unit sold or supplied in a month in excess of 150 units of energy

(b) In the explanation

(i) For clause (b) the following clause shall be substituted namely

(b) Premises used for business, trade, commercial purposes or for purposes of professional persuits shall include the premises used for the purposes of industries which do not require raw materials for carrying on the industries but which are carried on for rendering services such as flour mills, repair workshop and the like and are not registered in factories under the Factory Act, 1948 (No. 63 of 1948).

(ii) For clause (c) the following clause and Note shall be substituted and shall be deemed to have been substituted with effect from 1st October 1978 namely.

(c) Factory means a factory registered under the Factory Act, 1948 (No. 63 of 1948)

Note For the purpose of this section the date of issue of the Factory Licence or the date of commencement of production as certified by the Director of Industries or his authorised representative, whichever is later shall be deemed to be the date from which Factory is registered.

(iii) after clause (c) the following clause shall be inserted, namely -

(d) ‘Mine’ means a mine to which the Mines Act, 1952 (No. 35 of 1952) applies and includes the premises or machinery situated in or adjacent to a mine and used for crushing, processing, treating or transporting ore”

APPENDIX II – B (2) MADHYA PRADESH ACT

No. 15 of 1985 THE MADHYA PRADESH ELECTRICITY DUTY (AMENDMENT)

ACT, 1985 [Received the assent of the Governor on the 2nd August, 1985 assent first published in the “Madhya Pradesh Gazette” (Extraordinary) dated the 3rd August 1985.]

An Act further to amend the Madhya Pradesh Electricity Duty Act, 1949.

Be it enacted by the Madhya Pradesh Legislature in the Thirty sixth Year of the Republic of India as follows :-

1. (1) This Act may be called the Madhya Pradesh Electricity Duty (Amendment) Act, 1985.

(2) It shall be deemed to have come into force on the 1st day of August, 1985.

2. In Section 3 of the Madhya Pradesh Electricity Duty Act, 1949 (No. 10 of 1949) – (i) for the existing Table of Rates of Duty, the following Table shall be substituted namely :-

TABLE Rates of Duty

(1) Electrical energy sold or supplied for Consumption in premises used -

(a) for business, trade or commercial purposes or for purposes of professional persuits other than for flour mills.

9 paise per unit of energy upto 50 units of energy sold or supplied in a month 11 paise per unit for each additional unit sold or supplied in a month in excess of 50 units but not in excess of 100 units of energy; and 13 paise per unit for each additional unit sold or supplied in a month in excess of 100 units of energy.

(b) for flour mills 3 paise per unit of energy

(2) Electrical energy sold or supplied for consumption in premises of a factory excluding energy supplied for consumption for domestic or non – factory purposes where the connected load -

(a) does not excess 100 HP 3 paise per unit of energy

(b) exceeds 100 HP 4 paise per unit of energy

65 paise per unit of energy upto 50 units of energy sold or supplied on any one occasion;

Re. 1 per unit for each additional unit sold or supplied on any one occasion in excess of 50 units but not in excess of 100 units of energy and

(3) Electrical energy sold or supplied for purposes of illumination on the occasion of marriages or other social functions

Rs. 2.50 per unit for each additional unit sold or supplied on any one occasion in excess of 100 units of energy

(4) Electrical energy sold or supplied for

consumption in- 11 paise per unit of energy

(a) a township or colony attached to a factory, mine, or institution; or

(b) a premises getting supply at high voltage or extra high voltage but not covered under items (1) and (2) above.

(5) Electrical energy sold or supplied for consumption in a mine


(6) Electrical energy sold or supplied in bulk by a producer or distributor of electrical energy to another distributor of electrical energy excluding electrical energy supplied for his township or colony


(7) Electrical energy sold or supplied for consumption in premises and for purposes not covered under items (1) to (6) above.

7 paise per unit of energy upto 50 units of energy sold or supplied in a month 8 paise per unit for each additional unit sold or supplied in a month in excess of 50 units but not in excess of 150 units of energy; and 13 paise per unit for each additional unit sold or supplied in a month in excess of 150 units of energy

(ii) In clause (d) of the Explanation for the word “ore” the word “mineral” shall be substituted.

APPENDIX II B (3)

Bhopal, the 30th June 1986

No. 3242-F-1-13-XIII-86 – Whereas, the State Government is of opinion that having regard to the particular circumstances of such industries and in order to extend facilities to such classes of consumers for purposes of running their undertakings as are specified in the Schedule below it is necessary and expedient so to do in public interest.

Now, therefore, in exercise of the power conferred by Section 3-B of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State Government hereby exempts from payment of duty in excess of 3 paise per unit of electrical energy sold or supplied by –

(i) any distributor of electrical energy; or

(ii) producer in respect of the electrical energy.

to the industries and other classes of consumers as are specified in the schedule below:

SCHEDULE

1. Flour Mill (Atta Chakki), Oil expeller, Thrasher and similar other machinery used for agricultural processing.

2. Small Scale Industries registered with the State Industries Department

3. This notification shall come into force with effect from 1st July, 1986.

4. The Notification No.F-1-6-XIII-85, dated the 1st August 1985 which relates to the industries and other classes of consumers covered by this notification and also certain other categories of industries and classes of consumers shall stand rescinded from the 1st July, 1986.

APPENDIX II B (4)

MADHYA PRADESH ACT

No. 21 of 1986

THE MADHYA PRADESH ELECTRICITY (AMENDMENT) ACT 1986

Received the assent of the Governor of the 30th June 1986 assent first published in the “Madhya Pradesh Gazette (Extraordinary)” dated the 30th June 1986]


Be it enacted by the Madhya Pradesh Legislature in the Thirty seventh Year of the Republic of India as follows :-

1. (1) This Act may be called the Madhya Pradesh Electricity Duty (Amendment) Act, 1986.

(2) It shall come into force on such date as the State Government may by notification appoint.

2. For Section 3 of the Madhya Pradesh Electricity Duty Act, 1949 (No. 10 of 1949), the following section shall be substituted, namely:-

3. (1) Subject to the exceptions specified in Section 3-A every distributor of electrical energy and every producer shall pay every month to the State Government at the prescribed time and in the prescribed manner a duty calculated at the rates specified in the table below on the units of electrical energy sold or supplied to a consumer or consumed by himself for his own purposes or for purposes of his township or colony , during the preceding month :-

TABLE

RATES OF DUTY

PART – A

(1) Electrical energy sold or supplied in bulk by a producer or distributor of electrical energy to another distributor of electrical energy excluding electrical energy supplied for his township or colony.

2 paise per unit of energy.

PART-B

1. Electrical energy sold or supplied for consumption for purpose; as shown below:-

(1) For domestic purposes receiving electricity at low tension tariff.

8 paise per unit of energy upto 200 units of energy sold or supplied in a month.

15 paise per unit for each additional unit sold or supplied in a month in excess of 200 units of energy.

2. For Non-Domestic and Commercial purposes including X-ray plants receiving electricity at low tension tariff.


15 paise per unit for each additional unit sold or supplied in a month in excess of 100 units of energy.

3. For water and sewage pumping installation of Municipalities, Corporations and other local bodies used for public utility water scheme.

3 paise per unit of energy;

4. For Mines other than captive mines of a Cement Industry.


5. For cement Industry including its captive mines.


6. For Mini Steel Plant Calcium Carbide Plants and for consumers receiving energy under electro chemicals tariff.


7. For other industries not covered under above categories.


8. For non-industrial purposes not included under any of the above categories.


Provided that if the electrical energy sold or supplied for consumption for any one purpose is used either wholly or partly, without the consent of the distributor of electrical energy or producer of electricity, as the case may be, for consumption for any other purpose for which a higher rate of duty is chargeable the entire energy sold or supplied shall be charged at the highest rate applicable.

Explanation – For the purpose of this section –

(a) ‘month’ means such period as may be prescribed and till such period is prescribed the billing month.

(b) 'mine' means a mine to which the Mines Act, 1952 (No.35 of 1952) applies and includes the premises or machinery situated in or adjecent to a mine and used for crushing processing, treating or transporting the mineral.

(2) Item (1), (2), (3) and (6) of Part-B of the Table under sub-section (1) shall respectively cover the same categories of consumption as are adopted by the Madhya Pradesh Electricity Board for purpose of billing of electricity sold or supplied by it.

(3) If any dispute arises in respect of any matter falling under sub-section (2) , the decision of the State Government thereon shall be final.

APPENDIX II B (5)

Bhopal the 14th January 1988

NO.177-F-1-1 XIII-88-Whereas,the State Government is of opinion that having regard to the particular circumstances of such industries and in order to extend facilities to such classes of consumers for purposes of running their undertakings as are specified in the Schedule below it is necessary and expedient so to do in public interest;

Now, therefore in exercise of the powers conferred by section 3-B of the Madhya Pradesh Electricity Duty Act.1949 [No. X of 1949], and in supersession of this Department notification No,3242-F-1-13-XIII-85, dated the 30th June 1986,the State Government hereby exempts from payment of duty on the electrical energy sold or supplied by

(i) Any distributor of electrical energy; or

(ii) Producer;

to the industries and other classes of consumers and to the extent as are specified in the schedule:-

SCHEDULE

(i) Water and Sewage pumping installations of Municipalities Corporations and other local bodies used for public utility water schemes

Full exemption.

(ii) Flour Mills (Atta Chakki), Oil Expeller and similar other machinery used for agricultural processing.

Duty in excess of 3 paise per unit

(iii) Textile Mills other than Spinning mills. Duty in excess of 5 paise per unit

2. This Notification shall apply to the electrical energy sold, supplied or consumed during the month of January, 1988 and onwards.

APPENDIX II-B (6)

Bhopal the 30th July 1988

No.3111-F-10-5-XIII-88-Whereas, the Sate Government is of opinion that having regard to the particular circumstances of such industries and in order to extend facilities to such classes of consumers for purposes of running their undertakings as are specified in the Schedule below it is necessary and expedient so to do in public interest;

Now, therefore in exercise of the powers conferred by Section 3-B of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), and in supersession of this Department Notification No,F-1-6-XIII-85, dated the 1st August 1985, and No.177-F-1-1-XIII-88 dated the 14th January 1988, the State Government hereby exempts from payment of duty on the Electrical Energy sold or supplied by -

(j) Any distributor of electrical energy; or

(ii) Producer;

to the industries and other classes of consumers and to the extent as are specified in the schedule:-

SCHEDULE

(i) Water and Sewage pumping installations of Municipalities, Corporations and other local bodies used for public utility water schemes

Full exemption.

(ii) Power-looms registered with the Textile Commissioner or the Director, Handlooms


(i) any distributor of electrical energy or

(ii) Producer;

to the industries and other classes of consumers and to the extent as are specified in the schedule;-

SCHEDULE

(i) Water and Sewage pumping installations of Municipalities, Corporations and other local bodies used for public utility water schemes

Full Exemption.

(ii) Power-looms registered with the Textile Commissioner or the Directors, Handlooms


(iii) Flour Mills (Atta Chakki), Oil Expeller and similar other machinery used for agricultural processing.


(iv) Industries getting electricity supply at High voltage whose contract demand does not exceed 112 KW/125 KVA


(v) Textile Mills other than Spinning mills. Duty in excess of 9 paise per unit

2. This Notification shall apply to the electrical energy sold, supplied or consumed during the month of December, 1988 and onward.

APPENDIX II B (7)

MADHYA PRADESH ACT

No, 4 of 1989

THE MADHYA PRADESH ELECTRICITY DUTY (AMENDEMENT) ACT, 1989

[Received the assent of the Governor on the 13 April 1989, assent first Published in the "Madhya Pradesh Gazette (Extraordinary)" dated the 17the April, 1989).


Be it enacted by the Madhya Pradesh Legislature in the fortieth year of the Republic of India as follows:-

1. This Act may be called the Madhya Pradesh Electricity Duty (Amendment) Act, 1989

2. In section 3 of the Madhya Pradesh Electricity Duty Act,1949 (No.10 of 1949), (hereinafter referred to as the Principal Act), in sub-section (1) under the Table of Rates of Duty for items (1) to (6) of Part-B, the following items shall be substituted, namely:-

(1) For Domestic purposes receiving electricity at low tension tariff.

9 paise per unit of energy upto 100 units of energy sold or supplied in a month;

12 paise per unit of each additional units sold or supplied in a month in excess of 100 units of energy upto 200 units.

24 paise per units for each additional unit of energy sold or supplied in a month in excess of 200 units.

2. For Non-Domestic and Commercial purposes including X-ray plants receiving electricity at low tension tariff.


24 paise per unit for each additional unit of energy sold or supplied in a month in excess of 200 units.

3. For Mines other than captive mines of a Cement Industry.


4. For Cement Industry including its captive mines.


5. For other industries not covered under above categories -

(a) Industries receiving electricity at low tension tariff;


(b)Other Industries 12 paise per unit of energy.

6. For non-industrial purposes not included under any of the above categories.

24 paise per unit of energy" 15 paise per unit of energy w.e.f. 18.3.1997

3. Notwithstanding anything contained in Section 3 of Principal Act, the new rates of electricity duly introduced by this Act be applicable to the electricity sold, supplied or consumed during the month of April, 1989 and onwards,

4. The Madhya Pradesh Electricity Duty (Third Amendment) Ordinance, 1988 (No. 9 of 1988) is hereby repealed.

APPENDIX II-B (8)

MADHYA PRADESH ACT

No.15 of 1995

THE MADHYA PRADESH ELECTRICITY DUTY (AMENDMENT) ACT, 1995

[Received the assent the Governor on the 10th May, 1995; assent first published in the

"Madhya Pradesh Gazette (Extra ordinary)" dated the 15 May 1995]

An Act further to amend the Madhya Pradesh Electricity duty Act, 1949.

Be it enacted by the M.P. Legislature in the Forty Sixth year of the republic of Indian as follows:-

1. (1) This act may be called the M.P. Electricity duty (Amendment) Act, 1995.

(2) It shall be deemed to have come in to force on the 1st day of April 1995.

2. In section 3 of the M.P. Electricity duty Act, 1949 (No.10 of 1949) (hereinafter referred to as the Principal Act) :-

(i) in sub-section (1), under the table of rates of duty, for part-, the following part shall be substitute namely:-

PART – B

Electricity energy sold, supplied or consumed for the purposes as shown below:-

S.No. Purpose Rate of duty as percentage of the electricity tariff per Unit

1 2 3

1. On low tension tariff;

For domestic consumption Per month

(i) Up to 100 units 14

(ii) In excess of 100 units upto 200 units 15

(iii) in ecess of 200 units 23

2. On low tension tariff Per month

For non-domestic Consumption;

(i) Upto 200 units 11

(ii) in excess of 200 units 11.5

3. Mines (other than captive mines of cement industry)

40

4. Cement Industries (including its captive mines)

10.5

5. For other Industries not covered above categories -

(a) Industries receiving electricity at low tension Tariff

(i) Upon 25 HP 3

(ii) In excess of 25 HP upto 75 HP 4

(iii) In excess of 75 HP upto 100 HP 3.5

(iv) in excess of 100 HP upto 150 HP 3

(b) Other industries 80

(6) For Non-Industrial purpose not included under any of the above categories

24 Charged @15 w.e.f 18.09.97

7. For consumers who generate energy for their own consumption for the purpose included under any of the above categories, the rate of duty shall be calculated as if the electrical energy is supplied by the M.P. Electricity Board.

Provided that if the electrical energy sold or supplied for consumption for any purpose is used either wholly or partly, without the consent of the distributors of electrical energy or producer of electricity, as the case may be for consumption for any other purpose for which a higher rate of duty is chargeable, the entire energy sold or supplied shall be charged at the highest rate applicable.

Explanation:- for the purpose of this section :-

(a) “Month” means such period as may be prescribed and till such period is prescribed, the billing month;

(b) "Mine" means a mine to which the Mines Act, 1952 (No.35 of 1952) applies and includes the premises or machinery suitable in or adjacent to a mine and used for crushing, processing, testing or transporting the mineral.

(c) The Electricity Duty shall be calculated on the basis of actual percentage of tariff in a month and fraction of 50 paise and above will be rounded off to the next higher rupees and the fraction of less than 50 paise will be ignored.

(d) “Tariff” means the rate of energy per unit made applicable from time to time by the M.P. Electricity Board on the various categories of consumption.

(e) For the consumption of Power Plant Auxiliaries, the rates of electricity duty shall be such as shown against item (5) (b) of the table.

(ii) sub-section (2) shall be omitted.

APPENDIX II-B-(9)

Bhopal, the 17th May 1995

No. 3269-F-10-6-XIII-95-whereas, the State Government is of opinion that having regard to the particular circumstances of such industries and in order to extent facilities to such classes for purposes of running their undertaking as are specified in the Schedule below it necessary and expedient so to do in public interest:

Now, therefore, in exercise of the powers conferred by Section 3-B of the M.P. Electricity Duty Act, 1949 (No. X of 1949) and in supersession of this Department Notification No. 4994-F-10-9-XIII-88 dated 15th December, 1988, the State Government exempts hereby from payment of duty on the Electrical Energy sold or supplied by-

(i) any distributors of electrical energy; or

(ii) producer

To the industries and other classes of consumers and to the extent as are specified in the Schedule:-

SCHEDULE

S.No. Industries and other classes of consumers

Extent

1. Water and Sewage pumping installation of Municipalities, Corporations and other local Bodies used for public utility water schemes

Full exemption

2. Power-looms registered with the Textile Commissioner or the Director, handlooms.

Duty in excess of 6 per cent per unit of tariff of M.P. Electricity Board.

3. Flour Mill (Atta Chakki) Duty in excess of 3 per cent per unit of tariff of M.P. Electricity Board.

4. Oil expeller, thrasher and similar other machinery used for agricultural processing.


5. Industries getting electric supply at High Voltage whose contract demand does not exceed 112 KW/125 KVA

Duty in excess of 3.5 per cent per unit of tariff of M.P. Electricity Board.

6. Textile Mills other than Spinning Mills Duty in excess of 5 per cent per unit of tariff of M.P. Electricity Board.

7. Power intensive consumption of Bharat Aluminium Co. Korba (87.9% of total consumption).


2. This notification shall be deemed to have come into force with effect from 1st day of April, 1995.

APPENDIX II-B-(10)

MADHYA PRADESH

No.10 of 1997

MADHYA PRADESH ELECTRICITY DUTY (AMENDED) ACT, 1996

[Received the assent of the Governor of the 14 the March, 1997; assent first published in the "M.P. Gazette (Extraordinary )" dated the 18 the March 1997]

An Act further to amend the M.P. Electricity Duty Act, 1949.

Be it enacted by the M.P. Legislation in the forty-seventh year of the Republic of India as follows :-

1. This Act may be called the M.P. Electricity Duty (Amendment) Act, 1996.

2. In sub section (1) of section 3 of the M.P. Electricity Duty Act, 1949 (No.10 of 1949) under the tables of rates of duty, in part-B, against item (6) in column (3) for the figures "24", the figures "15" shall be substituted.

APPENDIX III (a) RATES OF FEES FOR TESTING AND INSPECTION OF

ELECTRICAL INSTALLATIONS (Reference Para 5.1 (b) and (c)

INSPECTION OF ELECRTRICAL INSTALLATIONS

Class of installations Capacity Fee in Rupees for each inspection

Frequency of inspection

(1) (2) (3) (4) A. Licensed undertaking or undertakings as supplying energy under section 28 of Indian Electricity Act 1910 including those of M.P. Electricity Board.

1.Upto and including 25 KW of generating plant installed or/and the capacity of the receiving transformers.

50 Once in a year.

2. Exceeding 25 KW up to and including 50KW of generating plant installed or/and the capacity of the receiving transformers.

100 -Do-

3. Exceeding 50KW and up to and including 100 KW of generating plant installed or/and the capacity of the receiving transformers.

150 -Do-

4. Exceeding 100 KW and up to and including 250 KW of the generating plant installed or/and the capacity of the receiving transformers.

250 -Do-

5. Exceeding 250 KW and up to and including 500KW of generating plant installed or/and capacity of the receiving transformer.

400 -Do-

6. Exceeding 500KW and up to and including 750 KW of generating plant installed or/and the capacity of the receiving transformers.

600 -Do-

(1) (2) (3) (4)

7. Exceeding 750 KW and up to and including 1000 KW of generating plant installed or/and capacity of the receiving transformer.

800 -Do-

8. Exceeding 1000 KW and upto and including 5000 KW of generating plant installed or/and capacity of the receiving transformer.

1200 -Do-

9. Exceeding 5000 KW and upto and including 10000 KW of generating plant installed or/and capacity of the receiving transformer.

1800 -Do-

1. Up to including 25 KW 50 Do B. Places other than those in (A) where the generating plant is installed.

2. Exceeding 25 KW and up to and including 50 KW.

100 Do


150 Do


250 Do

5. Exceeding 250KW and up to and including 500 KW.

400 Do


600 Do


800 Do


1200 Do


1800 Do

10. Exceeding 10000 KW. 2500 Do

(1) (2) (3) (4)

C. Medium, High or Extra High Voltage installations obtaining electrical energy from a license including M.P. Electricity Board or from a sanction holder under Section 28 of the Indian Electricity Act.1910 or from any other supplier.

(i) in respect of consumers in rural areas with an installed capacity not exceeding 25 KW.

1. Upto and including 5 KW

2. Exceeding 5 KW and upto and including 10 KW.

3. Exceeding 10KW and upto and including 25 KW.

(ii) In respect of other consumers:

10

15

30

Once in three

Year

Do

Do

1. Upto and including 5 KW 20 Once in 3 years for medium voltage and once in a year for others.


30 Do


50 Do


100 Do


150 Once in 3 years for medium voltage, in a years for others.


250 Do


400 Do

(1) (2) (3) (4) 8. Exceeding 500 KW and

upto and including 750 KW. 600 Do

9. Exceeding 750KW and upto and including 1000 KW.

800 Do


1200 Do


1800 Once in 3 years for medium voltage and once in a year for others.

12. Exceeding 10000 KW 2500 Do

D. New High Tension or Extra High Tension over head lines.

1. Up to first 10 km. or part thereof.

100 At the time of commissioning

2. For each addition Kms. Or part thereof.

5 Do

E. For the inspection of a high voltage Luminous tube sigh electrode boiler, X-Ray or High Frequency installation under Rule 71 to 73 of the Indian Electricity Rules, 1956.

25 Once in a year

F. Cinemas of other places of public entrainment.

1. For Cinema or theater other than a traveling cinema or other temporary places of public entertainment.

20 Once in a year

2. For a traveling cinema or other temporary place of public entertainment.

100 Twice in a year

Notes:-

1. For the purpose of inspection fees.

(a) The capacity of an installation shall be the aggregate capacity of the generating plant or apparatus installed.

(b) Kilo volt amperes or ‘D.H.P.’ shall be read instead of kilo watts’ wherever the machinery or equipment shall is so rated.

(c) Each generating plant. Sub-station or high voltage equipment shall be deemed to be a separate undertaking or installation. However, L.T. and H.T. lines attached to such undertaking shall be deemed to be their part and no separate fee will be charged except in case of new H.T. line.

2. Payment of fees:-

(a) The fees shall be paid by the owner or his agent into a Government Treasury under the Head “XIII-Other Taxes and Duties B-Electricity Duties-1-Fees under the Indian Electricity Rules, 1956 and the treasury challan shall be sent to the Electricity Inspector to Government of Madhya Pradesh.

(b) The fees shall be paid before the dates shown below:-

(i) For existing installation except those coming under category F-2 above, the fees shall be paid before 1st May in each year.

(ii) For installation coming under F-2 above the fee for the respective half year shall be paid before 1st May and November. In case the installation is not in use on the above dates, the fee for each half year shall be paid before the installation is used.

(iii) For new H.T. installation or new cinemas including additions or alterations the fee shall be paid in advance and the treasury challan shall be sent to Electrical Inspector along with the application for inspection and/or approval of such installation.

(iv) Fees payable for additional inspection under note 7 below shall be paid before the dates specified by the Electrical inspector in each case.

(v) For other new installations including additions or alterations and seasonal factories the fees shall be paid before the installations are brought into use.

(c) In case the fee is not paid before the dates shown in sub-clause (iv), the fee payable shall be increased by twenty per cent.

(d) In case the inspection or additional inspection is not carried out, the fee payable shall be adjusted towards that payable for the subsequent year or half year.

3. If any new installation is brought into use during the last two months of the financial year, the annual fee paid shall be deemed to cover the short period of the year in which the fee is paid as well as the full period of the next financial year.

4. If any installation is disconnected or dismantled before an inspection is carried out, no fee shall be charged.

5. In case of motors or other apparatus for power purpose installed on trial for a period exceeding 15 days, no fee shall be charged.

6. ‘Year’ for the purpose of this notification means a financial year from 1st April to 31st March.

7. The fees prescribed above will be payable for each periodical inspection as per frequency of inspection shown above. The first or initial inspection will be deemed to be the periodical inspection for the period in which the inspection has been carried out. For each additional inspection carried out at the request of the owner or due to breach of any of the provisions of the Indian Electricity Act or Rules there under of the cinematography rules and regulations, one half of the fees prescribed will be charged.

APPENDIX III (b) Refer para 5.1 (b) & (c)

Bhopal, the 22nd August 1987

No.4134-F-109-XIII-86:- In exercise of the powers conferred by sub-rule (2) of the rule 7 and sub-rule (2) of rule 46 of the Indian Electricity Rules, 1956 and in super session of all the previous orders and notification issued on the subject, the State Government hereby directs that the fees for testing and inspection and generally for the services of Electrical Inspectors to Government or their assistants under the Indian Electricity Act, 1910 (IX of 1910), shall be levied in accordance with the following scale of rates. These rates shall come in force from 1st October 1987.

Part I

Inspection of Electrical Installations

Class of installation Capacity Fee in Rs. For each inspection

Frequency of inspection

(1) (2) (3) (4)

A. The installation of the electricity supplier, consumers and electricity producers

(i) Medium voltage Installation of the consumers

- Once in three years for medium voltage installations of the consumers and once in a year for other.

(1) Agricultural installations

10

(2) Flour mills up to 10 HP – In rural areas in other areas

15 30

(3) Other installation 40

(ii) High and Extra High voltage installation and power station-

(1) Up to 25 KW 60

(2) Exceeding 25 KW and up to 100 KW

150

(3) Exceeding 100 KW and upto 500 KW

400


800


1500

(6) Exceeding 5000 KW 3000

B. New H.T. or E.H.T. over head lines

1. Up to first 10 Kilometers or part thereof

200

2. For each additional Kilometer or part thereof.

10

C. High Voltage installation under Rules 71 to 73

50 Once in the year

D. Cinemas or other places of public entertainment

1. For Cinema or Theatre other than traveling cinema or temporary place of public entertainment.

400 Once in a year

2. For a traveling cinema or other temporary place of public entertainment

200 Twice in a year

E. Overhead lines and service lines other than those covered by item B.

For each spam. 10

F. For lines crossing under rule 27.

For each crossing 50

G. New H.V. cables (other than overhead lines)

1. For first KM or part there of,

50

2. For each additional KM or part thereof.

20

Note:- (1) For the purpose of inspection fees -

(a) Generators and transformers, which have been installed in the same enclosure or adjacent to each other and which normally run in parallel, will be treated as on installation and the inspection fees will be charged on their aggregate capacity. But the transformers and generators which normally do not run in parallel and which have not been installed adjacent to each other or in the same enclosure will be treated as separate installations.

(b) Equipment other than generators and transformers receiving electricity supply from the same but and at the same voltage and which are installed in the same enclosure or adjacent to each other will be treated as one installation and inspection fees will be charged on their aggregate capacity, But equipment receiving electricity supply from different buses or at different voltage or which have not been installed adjacent to each other or in the same enclosed will be treated as separate installations.

(c) ‘Kilowatts Amperes’ or ‘B.H.P.’ shall be read instead of “Kilowatts” wherever the machinery or equipment is so rated.

2. Payment of Fees:- (a) The fees shall be paid by the owner or his agent into a Government Treasury under the head:-

Revenue Head for installation except Cinema

0043- Taxes and Duties on Electricity

102 Fees under the Indian Electricity Rules

And

Revenue Head for Cinema 0043 Taxes and Duties on Electricity

103 Fees for the Electrical Inspection of Electrical of Cinemas

and the treasury challan shall be sent to the Electrical Inspector to Government of Madhya Pradesh.

(b) The fees shall be paid before the dates shown below:-

(i) For existing installations except those coming under categories D-2 above, the fees shall be paid before 1st May in each year.

(ii) For installations coming under categories D-2 above the fee for the respective half year shall be paid before 1st may and 1st November. In case the installation is not in use on the above dates, the fees for each half year shall be paid before the installation is used.

(iii) For new H.T. installation or new cinemas including additions or alternations, the fee shall be paid in advance and the treasury challan shall be sent to the Electrical Inspector along with the application for inspection and/or approval of such installation. The fee such installations shall be 50 per cent more that the rate shown above.

(iv) For other new installations including additions or alternations and seasonal factories, the fees shall be paid before the installations are brought into use:-

(v) Fees payable for additional inspection under note 7 below shall be paid before the dates specified by the Electrical Inspection in each case.

(vi) Fees under category E shall be levied only for each subsequent inspection necessitated due to branch of any of the provisions of the Indian Electricity Act 1910 or rules made thereunder. Separate fee shall be payable for each service line tapped from the same pole.

(vii) Fees under category F shall be payable in advance by the person requesting for the inspection.

(c) In case the fees is not paid before the dates shown in sub-clause (b), the fee payable shall be increased by twenty per cent.

(d) In case the inspection or additional inspection is not carried out, the fee paid shall be adjusted towards that payable for the subsequent year or half year.

3. If any new installation is brought into use during the last two months of the financial year, the annual fee paid shall be deemed to cover the short period of the year in which the fees is paid as well as the full period of the next financial year.

4. If any installation is disconnected or dismantled before an inspection is carried out no fee shall be charged.

5. In case of motors or other appratus for power purpose installed on trial for a period not exceeding 15 days, not shall be charged.

6. ‘Year’ for the purposes of this notification means a financial year from 1st April to 31st March.

7. The fees prescribed above will be payable for each periodical inspection as per frequency of inspection shown above. The first or initial inspection will be deemed to be the periodical inspection for the period in which the inspection has been carried out. For each additional inspection carried out at the request of the owner or due to breach of any of the Indian Electricity Act, or Rules thereunder or the Cinematograph Rules and Regulations one half of the fees prescribed will be charged.

Part II

DISPUTES

If the Electrical Inspector is called upon to settle any difference or dispute arising or dispute under the Indian Electricity Act, 1910 or the rules made there under or under any agreement, the following fee shall be payable:-

Rs.

(a) In respect of low and medium voltage consumers

50

(b) In respect of High and Extra High voltage consumers

250

Note:- On receipt of application in connection with a difference or dispute between a consumer and licensee as to the correctness of any meter, the Electrical Inspector will arrange with the consumers and the Licensee to attend at the premises of the consumer. The Electrical Inspector will take charge of the meter of the which is not to be disconnected from the circuit except in his presence and then only by the licensee.

Part III

Test of Apparatus

(1) For testing of metres and other testing, the fee shall be as follows:

S.No. Name of the test/equipment to be tested

Fee payable (Rs. Per meter per list)

1 2 3

(a) Ammeter Voltmeter, Watt Meter, Power Factor Meter, Frequency Meter of Earth Tester.

30

(b) Energy Meter- Upto 20 Amps. Exceeding 20 Amps.

30 60

(c) Insulation Tester- 500 Volts Exceeding 500 volts

30 60

(d) Oil Test-Di-electrics supe gts/Acidity 30

(e) Insulation Test- Low and Medium Voltage High and extra High Voltage

30 60

(f) Voltage testing 30

Note:-

(1) In case 10 more meters of the same range and specification to be tested. one batch voltage is to be tested or more within a continuous period at every hour or half tan hour the fee payable shall be half of the fee shown above.

(2) The above tests will be carried out to the extent of the facilities available.

(3) If in case of dispute under section 26 of the Indian Electricity Act, the testing of meter is found necessary a fee for such testing shall be in addition to the dispute fee.

(4) The fee for tests other than shown above and found necessary shall be charges at such rates as the State Government may fix from time to time.

(5) For testing of any equipment or sample an application shall be given as per attached from. The equipment any terminals shall be in healthy condition. Any auxiliary equipment necessary for the test shall also be produced.

(6) The fee payable shall be deposited in the Government Treasury and the challan sent to the Electricity Inspector.

THE FORM OF APPLICATION FOR TESTING OF ELECTRICITY APPARATUS AND OTHER TESTS

To,

The Electrical Inspector,

…………………………

We are submitting the equipment/samples as per details below for testing:

1. Name of the equipment. 2. Name of the Manufacturer of the equipment. 3. Equipment's Manufacturer no. 4. The capacity and voltage to the equipment. 5. Details of the sample. 6. Date of taking the sample. 7. Name and Designation of the person who has taken out the sample.

We hereby agree that we shall not claim from the Government of the Madhya Pradesh or the Electricity Inspector any compensation for any damage to or loss of the apparatus due to any cause whatever during time it remains in the custody of the Electrical Inspector.

---------------------------------------

Place

Signature of the applicant

Date………………….

NAME

DESIGNATION

NAME OF ORGANIZATION

By order on the same of the Governor of Madhya Pradesh,

P.K.DIXIT, Dy. Secy.

OFFICE OF THE ACCOUNTANT GENRAL (WORKS & RECEIPTS AUDIT), MADHYA PRADESH

BHOPAL

STATE REVENUE AUDIT MANUAL MADHYA PRADESH

ELECTRICITY DUTY

SECOND EDITION 2008

Issued by

Authority of the Accountant General (Works & Receipts Audit) Madhya Pradesh

BHOPAL

PREFACE TO FIRST EDITION

This manual has been prepared for the guidance of the officers and staff

auditing Electricity Duty receipt and refunds. In this Manual the relevant

provisions of the law and procedure for assessment and collection of Electricity

Duty have been set out. If in the course of audit, reference has to be made to

the Act or the Rules framed thereunder, such a reference should be to the

Section/Rules of the various Acts and Rules framed there under and not to the

paragraphs of this manual.

2. The material contained in this manual may require modification in

the light of further experience gained in the course of audit and

subsequent orders and instructions issued by the State Government.

3. The State Receipt Audit group will be responsible for keeping the

manual uptodate.

4. The manual should be treated as a guide only and the audit checks

mentioned should not be taken as exhaustive.

5. Errors or omissions in the Manual may be brought to the notice of the

Accountant General (Works & Receipts Audit), Madhya Pradesh to

whom suggestions for improvement may also be sent.

Sd/-Accountant General

(Works & Receipts Audit)Madhya Pradesh

PREFACE TO SECOND EDITION

It is my pleasure to present the second edition of the Revenue

Audit Manual on Madhya Pradesh Electricity Duty (ED). Since 1982, when the

first edition of this manual was brought out, several changes in the relevant

Acts and Rules have taken place, which are incorporated in the second edition

so as to make it uptodate.

This manual has been prepared for guidance of the officers and

staff auditing Electricity Duty (ED) receipts and refunds. In this manual, the

relevant provisions of the law and the procedure for assessment and collection

of Electricity Duty have been set out. However, in course of audit, reference

has to be made to the Act or the Rules framed thereunder.

The material contained in this manual may require modification

in the light of further experience gained in course of field audit and subsequent

orders and instructions issued by the State Government from time to time.

The State Revenue Audit group will be responsible for keeping the manual

uptodate.

The manual should be treated as a guide only and the audit

checks indicated should not be taken as exhaustive. Errors or omissions in the

manual may be brought to the notice of the Accountant General (W&RA)

Madhya Pradesh, Bhopal. Suggestions for further improvement of this manual

are welcome.

BHOPAL June 2008

Accountant GeneralMadhya Pradesh

TABLE OF CONTENTS

Chapter Subject Page No.

1. Legislative background 01

2. Departmental set up 03

3. Definitions 05

4. Levy, assessment and realisation of electricity duty

08

5. Levy, assessment and realisation of fees 18

6. Offences, penalties, fines and appeals 21

7. Records and returns 27

8. Audit checks 32

Appendices

Appendix-I Hon.Supreme Court Decisions 36

Appendix-II Rates of duty 38

Appendix-III Rates of fees for testing and inspection of electrical installations

61

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