Payment of electricity duty

(1)Every licensee shall collect any pay to the State Government at the time and in the manner prescribed, the proper electricity duty payable under this Act in respect of energy supplied by him to consumers. The duty so payable shall be recoverable by the licensee for the energy supplied by him and shall be a debt due by him to the State Government: Provided that where the licensee has been unable to recover his dues for the energy supplied by him, he shall not be liable to pay the duty in respect of the energy so supplied.

(2)Every person, not being a licensee, who generates energy and supplies the same to any other person free of charge shall collect and pay to the State Government, at the time and the manner prescribed, the proper electricity duty payable under this Act in respect of energy consumed by that other person.

(3)Where any consumer fails or neglects to pay, at the time and in the manner precribed, the amount of electricity duty due from him, the licensee, or as the case may be, the person supplying energy free of charge, may, without prejudice to the right of the State Government to recover the amount under section 8, deduct such amount of electricity duty from the amount, if any, deposited by the consumer with the licensee or such person or after giving not less than seven clear day’s notice in writing to such consumer cut off the supply of energy to such consumer; and he may, for that purpose, exercise the power conferred on a licensee by sub-section (1) of section 24 of the Indian Electricity Act, 1910, for recovery of any charge or sum due in respect of energy supplied by him.

(3A)The State Government or an officer authorized by the State Government in this behalf, may, in respect of any consumer,- (a)extend the date of payment or allow him to pay electricity duty by installments in such manner and on such conditions as may be prescribed, (b)allow deferment of payment of electricity duty under such circumstances, on such conditions and for such period not exceeding five years in aggregate, if deferment is allowed for hundered per cent. of the payment liability of electricity duty and not exceeding seven years in aggregate, if deferment is allowed for fifty per cent. of the payment liability of electricity duty as may be prescribed.

(4)The licensee, or as the case may be, the person supplying energy free of charge shall be entitled to a rebate of such amount as may from time to time be determined by the State Government, regard being had to the cost of collection of the duty incurred by such licensee, or person supplying energy free of charge.

(5)Every licensee who uses energy and every person, not being a licensee, who generates energy for his own use shall pay to the State Government at the time and in the manner prescribed the proper electricity duty payable under this Act on the units of energy consumed by him.