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TMI Blog1983 (8) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... payable by a person who has his own source of generation and also purchases electrical energy from a licensee, or the Board, or the State Government, or the Central Government. The contention has been raised in the context of Section 3(1) and 4(1) of the U. P. Electricity (Duty) Act, 1852. The view is canvassed on behalf of the consumers of electrical energy that while under Section 3(1) (c) read with Section 4(1) (c) of the Act Electricity Duty is indubitably leviable and payable on electrical energy consumed by a person from his own source of generation, such duty is not payable by him in case he consumes energy from his own source of generation and also purchases energy from a licensee, the Board, the State Government or the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some other source indicated in Section 3 (1) (a) and (b). In view of this decision of the Full Bench, petitions instituted by six other companies raising the identical question were dismissed by the High Court of Allahabad. These companies 669 have approached this Court by way of six separate appeals by special leave granted by this Court. Sections 3 (1) and Section 4(1) of the Act in so far as material read thus;- 3. Levy of Electricity Duty-(I) Subject to tho provisions herein after contained, there shall be levied for and paid to the State Government on the energy: (a) Sold to a consumer by a licensee, the Board, the State Government or the Central Government, or (b) Consumed by a licensee or the Board in or upon premises used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sections 3 (1) (b) and 3 (1) (c) (it is so argued such a person would not be exigible to electricity duty. The same argument is urged protanto in the context of clauses (a), (b) and (c) of Section 4(1). In our opinion this submission is altogether untenable and has been rightly repelled by the Pull Bench of the Allahabad High Court in its well considered judgment. On a plain reading of Section 3 (1) (c) it is evident that duty has been levied on the energy consumed by a person from his own source of generation without anything more. There is no rider or qualification engrafted in Section 3 (1) (c) or Section 4 (1) (c?. The fact that the user of electricity from his own source of generation purchases electricity from some other source as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t which this State must carry out within the next three or four years for the attainment of the objective of a welfare State is set out in the Five Year Plan drawn up by the Planning Commission. This plan provides for an expenditure of 13.58 crores of rupees on power development projects. Such a huge expenditure cannot be met from our present resources. It is, however essential for the welfare of the people that the expenditure should be incurred and that noting should be allowed to stand in the way of the progress of the plan. Additional resources have therefore to be found, the bulk of which can be raised only by means of fresh taxation. A tax on the consumption of electrical energy will impose a negligible burden on the consumer and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed. 672 The next question agitated in five out of the seven appeals comprised in the group (it does not arise in C.A.1312/77 and C.A. 1146/79) arises thus:- The State of U.P.issued a notification dated March 17, 1973 whereby in exercise of powers under sub-section (4) of Section 3 of the Act a person consuming energy from his own source of generation installed 'after' January 2, 1973 was exempted from payment of electricity duty. The appellants in the appeals before us are persons who have their own source of generation of electricity. The generating machinery was however installed and commissioned by them 'before' January 2, 1973. It is their contention that exemption could not have been lawfully granted to a perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of energy with a view to reduce or lessen the burden on the existing sources of electricity generation. Obviously this purpose can be achieved only by granting the exemption prospectively to those consumers who install their own source of generation of energy pursuant to the concession being granted under the provision for exemption. Those who already had their own source of generation of energy need no such encouragement in respect of the source of generation already installed. If they wanted to further augment their own source of generation of energy they would also be entitled to 673 exemption in respect of the 'additional' source of generation installed 'after' the date specified in the notification. The classification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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