Maharashtra Tax on Sale of Electricity Act, 1963
No: 21 Dated: Apr, 24 1963
THE MAHARASHTRA TAX ON SALE OF ELECTRICITY ACt, 1963
ACT No. XXI OF 1963
An Act to levy a tax on the sale of electricity in the State of Maharashtra and to provide for the creation of a Fund therefrom for the improvement and development of power supply in the State.
Whereas, it is expedient to levy a tax on the sale of electricity in the State of Maharashtra and to provide for the creation of a Fund therefrom for the improvement and development of power supply in the State;
It is hereby enacted in the Fourteenth Year of the Republic of India as follows:-
1. Short title, extend and commencement. - (1) This Act may be called the Maharashtra Tax on Sale of Electricity Act, 1963.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall be deemed to have come into force on the 1st day of January 1963.
2. Definitions. - In this Act, unless the context otherwise requires,-
(a) "Board" means the State Electricity Board constituted under sub-section (1) of section 5 of the Electricity (Supply) Act, 1948 and functioning as such at the commencement of the Electricity Act;
(b) "Electricity Act" means the State Electricity Act, 2003;
(c) "power utility" shall include the Board, a generating company, a licensee and a person generating electricity primarily for his own use and for the use of his associates;
(d) "prescribed" means prescribed by rules made under this Act;
(e) "tax" means a tax imposed under this Act;
(f) words and expressions used but not defined herein shall have their respective meanings as assigned to them under the Electricity Act.
3. Incidence of tax. - Subject to the provisions of this Act, there shall be levied and paid, at such rate and from such date, either prospective or retrospective, as may be specified by the State Government, by notification in the Official Gazette, a tax not exceeding fifty paise per unit, in respect of all sales of electricity to a consumer by a power utility:
Provided that, no tax shall be levied and collected or paid on the electricity sold by one power utility to another power utility.
4. Payment of tax. - Every power utility shall pay to the State Government at the time or times and in the manner prescribed, the amount of tax payable under this Act.
5. Utilisation of proceeds of tax. - (1) The proceeds of the tax (together with any interest payable under section 9) recovered under this Act, shall first be credited to the Consolidated Fund of the State, and under appropriation duly made by law in this behalf,-
(a) an amount of tax equivalent to eight paise per unit paid by power utility to the State Government in respect of sale of electricity to commercial and industrial consumers shall be transferred to the Maharashtra Energy Development Agency established under the Societies Registration Act, 1860 or its successor, for executing schemes of generation of renewable and non-conventional sources of energy; and
(2) Any amount transferred to the Maharashtra Energy Development Agency * * * under sub-section (1) shall be charged on the Consolidated Fund of the State.
5A. Purposes for which Fund may be expended. - Deleted by Maharashtra 5 of 2008, Section 9(c), (w.e.f. 22-2-2008).
6. Licensee to keep books of account and submit returns. - Every power utility who is required to pay tax shall keep books of account in the prescribed form, and submit to the State Government or to an officer authorised by that Government in this behalf, returns, in such form, and at such times, as may be prescribed, showing the units of energy sold by him and the amount of tax payable thereon and the amount of tax already paid by him.
7. Power to exempt. - Subject to such conditions (if any) as it may impose, the State Government may, if it considers it necessary in the interest of the development of power supply so to do, by notification in the Official Gazette, exempt the sale of energy by any class of power utility or to consumers from the payment of the whole or any part of the tax payable under this Act.
7A. Energy consumed by or sold to Government of India or railway not liable to tax. - Notwithstanding anything contained in this Act, no tax shall be levied on the consumption or sale of energy (whether produced by a Government or other persons) which is-
(a) consumed by the Government of India or sold to the Government of India for consumption by that Government; or
(b) consumed in the construction, maintenance or operation of any railway by the Government of India, or sold to that Government for consumption in the construction, maintenance or operation of any railway.
8. Inspecting Officers. - (1) The State Government may, by notification in the Official Gazette, appoint any persons, having the prescribed qualifications, to be Inspectors for the purposes of this Act.
(2) Every Inspector shall perform such duties and exercise such powers, as may be prescribed.
(3) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
9. Recovery of tax. - Any sum due on account of the tax, if not paid at the time and in the manner prescribed, shall be deemed to be in arrears; and thereupon, interest on such sum shall be payable at the rate of 18 per cent per annum for the first three months immediately after the time such sum has become due and thereafter, at the rate of 24 per cent per annum till such sum is paid; and the sum together with the interest thereon, shall be recoverable either through a civil court or as an arrear of land revenue at the option of the State Government, or any officer authorised by the State Government in this behalf.
10. Refund of tax. - The State Government may by rules prescribe that in such circumstances and subject to such conditions (including any period of limitation) as may be specified in the rules, a refund of the whole or any part of the tax may be granted to the power utility.