The Kerala Electricity Duty Act, 1963 (No.23 of 1963)

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THE KER/\LA ELECTRICITY DUTY ACT, l963 .

(Act 23 of1963)

Con-rams

Preamble.

4
Sections.

k 1. Short title, extent and commencement.

2. Definitions.

3- Levy of Electricity Duty on certain sales of energy by
Licensees.

4. Levy ot‘Electricity Duty on consumers.

5. Collection and payment of electricity duty levied on

consumers.

6. Books ofaccount, etc.

7. Inspecting Oflicers.

8. Recoveries.

9. Penalties.

10. Ofl‘ences by companies.
I l . Power to exempt.

l2. Savings.
l3. Power to make rules.

14. Power to remove difficulties.

A Is. Protection ofaction taken in good faith.
A.
“ lG. Repeal.

Schedule

ACT 23 OF 1963‘

THE KERALA ELECTRICITY DUTY ACT, l963

Alt/1:1 to unify and amend the laws relating la [/11- leu] 1g" duly 0111!":

and conmmplwu of tlerlnml energy 1n the Stale ufK'naIa.

Preamblt.—Whereas it is expedient to unify and amend the laws

relating to the levy of duty on the sales and consumption of electrical

energy in the State of Kerala ;

Be it enacted in the Fourteenth Year of the Republic of India as

follows 1——

]. Slim lllle, mm and commmumnt.——(I) This Act may be
called the Kerala Electricity Duty Act, 1963.

K
(2) It extends to the whole of the State ofKerala.

\ (3) It shall come into force on such date as the Government

may, by notification in the Gazette, appoint.

*Received the asse—nt of the Governor on 315: March 1963 and

published in the Gazette Extraordinary, dated lst April 19 3.

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2. Definition—In this Act, unless the context otherwise

l.equires,—

(a)
“

consumer
"

includes a local authority, company or other

person to whom energy is supplied by a licensee on payment of charges
or otherwise, and a licensee or other person who consumes energy
generated by himself, but does not include a licensee to whom energy
is supplied by the State Electricity Board for supply to others,

Explanation :—Where a licensee to whom energy is supplied by the

Kerala State Electricny Board for supply to others, himself consumes

any part of the energy, he shall be deemed to be a consumer in respect
ofenergy so consumed except energy lost in distribution ;

(b)
“

electricity duty
"

means a duty levied under section 3 or

section 4 of the Act ;

(c)
“

energy
"

means electrical energy ;

(d)
“ licensee

”

means—

(i) the Kerala State Electricity Board constituted under

section 5 ol the Electricity (Supply) Act, 1948 (Cen-
tral Act 54 of1948) ;

(ii) any person licensed under Part II of the lndiait

Electricity Act, l9l0 (Central Act 9 of l9l0). to

supply energy and includes any person who is deemed

to have been so licensed and any other person who

has obtained the sanction of the Government under

section 28 of the said Act ; and

(iii) the Government when it is engaged in the business of

supplying energy ,

(e)
“

prescribed
”

means prescribed by rules made under this

Act.

3. Lay qf Eltclii'nly D111] 1m cerium sales ofumy by (tanner.—

(l ) Save as otherwrse provided In sub-section (2) every licensee in the

state of Kerala shall pay every month to the Government in the pre-
scribed manner, a duty calculated at (S naye Paise per unit of energy
sold at a price of more than l2 naye Paise per unit :

Provided that no duty under this subsection shall be payable
by the Kerala State Electricny Board on the energy sold by it to an-

other licensee.

(2) Where a licensee holds more than one licence, duty shall

be calculated and levned under this section separately in respect of each

licence.

, (3) The duty under this section on the sales ofenergy should be

borne by the licensee and shall not be passed on to the consumer.

4. 1.ch qululrmzy Duly on mmumrrs.—Every consumer belong-
ing to any of the classes specnfied in column (2) of the Schedule shall

pay every month to the Govexnment in the prescribed manner a duty
calculated at the iate specified against that class in column (3) thereof:

Provided that in cases where the supply of energy to a consumer is

regulated by an agreement entered into between the Government or the

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licensee and the consumer it shall be competent tor the Government

either to reduce the rate at which duty is leviable on such consumer ot

to exempt such consumer from payment ol‘ duty under this section

subject to such terms and conditions as may be imposed by the Govern—

ment.

5. Collection and payment of alum-m} duly let/zed on swimmers.—

(1] Every licensee shall collect and pay to the Government at the time

and in the manner prescribed, the electricity duty payable under

section 4 of this Act on the units of energy consumed by every consumer

to whom energy is supplied by him. The duty so payable shall be a

first charge on the amounts recoverable by the licensee for the energy

consumed, and shall be a debt due by him to the Government.

(2) When any consumer fails or neglects to pay at the time and

in the manner prescribed, the amount of electricity duty due from him,
the licensee may, without prqudice to the right of the Government to

recover the amount under section 8, after giving not less than seven

clear days‘ notice in writing to such consumer, cut ofl‘supply ofcncrgy
to such consumer; and he may, for that purpose, exercise the power

conferred on a licensee by subsection (l) of section 24 of the Indian

Electricity Act, 1910, for the recovery of any charge or sum due in

respect of energy supplied by him.

6. Bank: (3/ accaunt, eta—Every licensee shall keep books. of

account, in the prescribed form and submit to the Government or to

the prescribed officer returns in such form and at such times as may be

prescribed showing the units of energy consumed by him or supplied
by him to each consumer, as the case may be, and the amount of duty
payable thereon and recovered or paid by him under this Act, or show-

ing such other particulars as may be prescribed.

7. Impulmg Qfl'mm—(l) The Government may by notification

in the Gazette, appoint Inspecting Officers to inspect the books of

account required to be kept by licensees under section 6.

(2) The Inspecting Officers so appointed shall perform such

duties and exercise such powers as may be prescribed, for the purpose
of carrying into effect the provisions of this Act and the rules made

thereunder.

(3) Every such officer shall be deemed to be a public servant

Within the meaning of section 2i of the Indian Penal Code.

8. Rtwvm'z:.—Any sum due on account of electricity duty, if not

paid at the time and in the manner prescribed, shall be deemed to be in

arrears, and thereupon such interest not exceeding twelve per cent per
annum which the Government may by general or special order fix,
shall be payable on such sum ; and the sum, together with any interest

thereon,shall be recoverable either through a Civil court or as an arreat‘

of land revenue—

(2) if the amount was payable under section 3, from the

licensee; and

(it) if the sum was payable under sub-section (l) of section

5, either from the consumer or from the licensee, at the option of the

Government.



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9. PenalticJ.—If any licensee——

(1:) fails to keep books of account or to submit returns as req~
lured by section 6, or

(II) intentionally obstruct an Inspecting Olliccr appointed
under section 7 in the performance of his duties or the exeiCise of his

powers under this Act and the rules made thereunder, he shall be

punishable with line which may extend to one thousand iupees.

l0. Oflcnm by campamn.—(l) Where an offence under this Act

has been committed by a company, every person who, at the time the

offence was committed, was in charge of, and was responsible to the

company for the conduct of the business of the company, as well as the

company, shall be deemed to be guilty of the ofience and shall be liable

to he proceeded against and punished accordingly :

Prayided that nothing contained in this sub-section shall

render any such person liable to any punishment proVided in this Act

if he proves that the offence was committed Without his knowledge or

that be exercised all due diligence to pievent the LOmMISSIOH of such

oflcnce.

(2) Notmthstanding anything contained in sub-section (1)
where an oflence under this Act has been committed by a company and

it is pioved that the offence has been committed with the consent oi

connivance of, or is attributable to any neglect on the part of any

diiecmi, manager, secretary or other oflicei of the company ,such direc-

tot, 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.

Explmwhmi.—Foi the purposes of this section—

(a)
“

company
”

means a body corporate and includes a firm

or other association of individuals ; and

(b)
“

director" in relation to a firm means apariner in the

fiim.

ll. Powei to ueinpl.—Tlic Government may in public interest,

by notification in the Gezette, exempt any ltcensee from the

payment of the whole or part of the electricity duty for‘such period
and subject to such terms and conditions as may be speufied in such

notification.

l2. Saviiigs.—For the avoidance of doubt, it is hereby declaied

that nothing in this Act shall be taken to impose Ol authorise the im-

posnion of, a duty on the consumption or sale of electricity (whethei
pi oduced by Government or other persons) which is—

(a) consumed by the Government of India or sold to the

Government of India for consumption by that Government, or

(b) consumed in the construction, maintenance 0i opciation
of any railway by the Government of India, Ol sold to that Government

for consumption in the construction, maintenance or opcmtion of any

railiiay.

13. Puma Ia mule iii/rs —(l) The Goveinmcnt may make iiiles

to cany out the puipoies ol this Act.

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(2) In particular and without piejudicc lo the geneiality of

the foregoing power, such rula may proVidc for—

(a) the time and the manner of payment of electiicity
duty under sections 3 and 4,

(b) the form of the books of account required to be kept
under section 6;

(c) the times at which, the form in which, and the officers

to whom, the returns required by section 6 should be

submitted;
.

(d) the duties and powers of Inspecting Officers appointed
under section 7; and

(e) any other matter for which there is no provision or

insulfiment provision in this Act and {or which

provision is, in the opinion of the Government,
necessary for givmg efiect to the purpose of this Act,

(3) In making a rule under sub-section (1) or sub-section (2)
the Government may provide that a bieach thereof shall be punish-
able With fine not exceeding one thousand rupees.

(4) Every rule made under this Act and every notification issued

under section ll or section 14 shall be laid, as soon as may be after it

is made, before the Legislative Assembly while it is in semen for a

total period of fourteen days which may be comprised in one sessron

or in two successive sessmns, and if, before the expiry of the session in

which it is so laid, or the session immediately followmg, the Legislative
Assembly makes any modification in the rule or notification or decides

that the rule or notification should not be made. the rule or notification
shall thereafter have effect only in such modified form or be of no effect,
as the case may be;so however that any such modification or annulment

shall be without prejudice to the vaiidity of anything preViously done

under that rule or notification.

)4- Power to remove dtfltmllm.—li any difficulty arises in

giving effect to the proVisions of this Act in consequence ofthe

transition to the said prowsions from the provmons of the enactments

repealed by section 16, the Government may, by notification, make

such prowsions as appear to it to be necessary or expedient for removing
the dilhculty.

15. Prumlmn qfatlwri taken in good fuzz/L—No suit, prosecution
or other legal proceeding shall lie against any person for anything
which is in good faith, done or intended to be done under this Act.

16. Repeal.—The Madras Electiicity Duty Act, [939 (ActV
of “333) as in force in the Malabar District referred to in sub-section

(2) of section 5 of the States Reorganisation Act, 1956 and the

Travancore-Cochin Electricity Duty Act, 1950 (Act IV of 1950) are

hereby repealed.



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SCHEDULE

(5:: section 4)

Column (1) Column (2)
Item Class qfCannmer:

1. Domestic and Commercial con-

sumers consuming energy for

purposes like lighting and com-

bined installation of lights and

fans, radios, refrigerators, small

cookers, air conditioning plants,
heaters, pumps, all electric

homes, cinematograph installa-

tions and motion picture studios.

Public Lighting.

Consumers ofenergy for agricul-
ture purposes.

INDusrRuu. consuimks.

(a) Consumer: taking supply of

energy at points below ll KV.

(b) Consumers taking supply of

energy at ll RV. and above.

Column (3)
Ram: of Duty

10 per cent of the

price of energy indi-

cated in the invoice.

Nil.

10 per cent of the price
of energy indicated in

the invoice.

l0 per cent of the price
of energy indicated in

the invoxce.

20 per cent of the price
of energy indicated in

the invoice.

4‘7.

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