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Issues Involved:
1. Rate of duty payable on consumption of electrical energy under the Madhya Pradesh Electricity Duty Act, 1949. 2. Constitutionality of the Madhya Pradesh Electricity Duty (Amendment and Validation) Act, 1984. Issue-wise Detailed Analysis: 1. Rate of Duty Payable on Consumption of Electrical Energy: The primary issue in this case is whether the duty payable on the consumption of electrical energy by M/s. Birla Ltd. under Section 3 of the Madhya Pradesh Electricity Duty Act, 1949 ("the 1949 Act") should be calculated under Item (1) or Item (2) of the Table to Section 3 of the 1949 Act. M/s. Birla Ltd. contended that the duty should be calculated under Item (2) because the premises where the electrical energy was consumed should be regarded as a factory due to the inclusive meaning of "factory" given in Explanation (c) to Section 3 of the 1949 Act. The Government of Madhya Pradesh, however, levied duty under Item (1) of the Table, which pertains to premises used for business, trade, or commercial purposes, including mines to which the Mines Act, 1952 applies. The High Court of Madhya Pradesh had upheld the contention of M/s. Birla Ltd., ruling that the duty should be calculated under Item (2) of the Table. However, the Supreme Court, upon reviewing the relevant provisions and explanations of the 1949 Act, concluded that the premises of M/s. Birla Ltd. at the mines site, where lime-stone boulders are processed, falls under the description of premises covered by Item (1) due to the applicability of the Mines Act. The Court emphasized that when a premises falls within the description of premises covered by Item (1), the highest rate of duty is leviable, and any lower rate under another item is excluded. Therefore, the duty payable for electrical energy consumed in the premises of M/s. Birla Ltd. at the mines site should be at the rate specified in Item (1) of the Table to Section 3 of the 1949 Act. 2. Constitutionality of the Madhya Pradesh Electricity Duty (Amendment and Validation) Act, 1984: The second issue pertains to the constitutionality of the Madhya Pradesh Electricity Duty (Amendment and Validation) Act, 1984 ("the Validation Act"), which amended certain provisions of the 1949 Act and validated the duty levied on the consumption of electrical energy in premises to which the Mines Act applied. M/s. Birla Ltd. challenged the constitutionality of the Validation Act, arguing that it retrospectively validated the levy of duty contrary to the High Court's judgment. The Supreme Court noted that the Validation Act was enacted while the appeal against the High Court's judgment was pending. The Court referenced its decision in Govt. of A.P. v. H.M.T., where it had upheld the provisions of a Validation Act that retrospectively validated the levy of duty. However, since the Supreme Court found the High Court's judgment unsustainable and ruled that the duty should be calculated under Item (1) of the Table, it deemed it unnecessary to examine the constitutionality of the Validation Act further. Conclusion: The Supreme Court allowed the civil appeal, set aside the High Court's judgment, and ruled that the duty payable for electrical energy consumed in the premises of M/s. Birla Ltd. at the mines site should be at the rate specified in Item (1) of the Table to Section 3 of the 1949 Act. Consequently, the writ petition challenging the Validation Act was dismissed.
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