The Gujarat Tax on Sale of Electricity Act, 1985

Short title, extent and commencement.

1. (1) This Act may be called the Gujarat Tax on Sale of Electricity Act, 1985.
2. (2) It extends to the whole of the State of Gujarat.
3. (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

Definitions. In this Act, unless the context otherwise requires,—

1. (a) “Consumer” means any person who is supplied with electricity by a licensee or by the State Government or by the Board;
2. (b) “Energy” means electrical energy;
3. (c) “Licensee” means any person licensed under Part II of the Indian Electricity Act, 1910 (9 of 1910) to supply energy, and includes any person who has obtained the sanction of the State Government under section 28 of that Act;
4. (d) “Sale” means a transfer of property in goods for cash or deferred payment or other valuable consideration and includes a supply of energy by a licensee to himself or to his branches or to consumers, but does not include a mortgage, hypothecation, charge or pledge;
5. (e) “Sale Price” means the amount payable to a licensee as consideration for the sale of energy, excluding the meter rent, if any, and such other charges as may be prescribed;
6. (f) “Tax” means the tax levied and includes any penalty or interest levied under this Act;
7. (g) “Turnover of sales” means the aggregate of the amounts of sale price received or receivable by a licensee in respect of sale of energy effected by him during a given period and includes the price of energy supplied by him to himself or to his branches.

Tax on sale of electricity:

1. (1) Subject to the provisions of this Act, there shall be levied and paid to the State Government a tax on the consumption of electricity (hereinafter referred to as the "electricity duty") at such rate or rates as may be specified by the State Government, by notification in the Official Gazette, not exceeding the rates specified in the Schedule to this Act, on the units of electricity consumed by a consumer: Provided that the State Government may, by notification in the Official Gazette, fix different rates of electricity duty for different areas or for different classes of consumers or for different purposes of consumption of electricity.
2. (2) The electricity duty shall be levied on and paid by the consumer and shall be collected and paid to the State Government by the licensee, or the person generating the electricity, as the case may be: Provided that where, in addition to the electricity supplied by a licensee or generated by a person, the consumer consumes electricity from any other source, the electricity duty shall be levied on and paid by such consumer in such manner as may be prescribed.
3. (3) The State Government may, by notification in the Official Gazette, grant exemption from the payment of the whole or any part of the electricity duty to such class of consumers or for such purposes, and subject to such conditions, as may be specified in the notification.

Payment of tax:

1. (1) Every licensee or, as the case may be, every person generating electricity shall collect and pay to the State Government, at such time and in such manner as may be prescribed, the electricity duty payable under this Act.
2. (2) In the event of failure of a licensee or a person generating electricity to collect and pay the electricity duty to the State Government within the prescribed time, he shall be liable to pay, in addition to the electricity duty, a penalty at such rate not exceeding two percent per month of the amount of the electricity duty so remaining unpaid, for the period during which the failure continues, as may be prescribed.
3. (3) The amount of electricity duty and penalty, if any, payable under this Act, if not paid by the licensee or the person generating electricity, shall be recoverable as an arrear of land revenue.

Returns

1. (1) Every licensee shall furnish to such officer and in such form and within such time as may be prescribed, a return of the units of electricity sold by him, and of the amount of tax payable thereon under this Act: Provided that the State Government may, if it is satisfied that it is necessary so to do, allow a licensee to furnish such return at intervals longer than those prescribed.
2. (2) Every return shall be accompanied by a treasury challan in proof of the payment of the full amount of tax due according to such return.

Assessment of tax

1. (1) If the prescribed officer is satisfied that any return furnished under section 5 is correct and complete, he shall accept the return.
2. (2) If the prescribed officer is not satisfied that any return furnished under section 5 is correct and complete, he shall serve on the licensee a notice requiring him, on the date and at the hour and place to be specified therein, either to attend in person or to produce or cause to be produced any evidence on which the licensee relies in support of his return.
3. (3) On the day specified in the notice or as soon afterwards as may be, the prescribed officer shall, after hearing such evidence as the licensee may produce and such other evidence as the prescribed officer may require on specified points, by an order in writing, assess the amount of tax payable by the licensee.
4. (4) If a licensee fails to furnish the return required by section 5 or having furnished the return, fails to comply with the terms of the notice issued under sub-section (2), the prescribed officer shall, by an order in writing, assess to the best of his judgment the amount of tax payable by the licensee:

Power to compel production of books, accounts, etc Power to compel production of books, accounts, etc.

1. (1) Any officer authorised by the State Government in this behalf may, for the purposes of this Act, require any licensee or any other person to produce before him such books, accounts or documents as are in his custody or control and to furnish to him such information relating to the sale of electricity as he may require.
2. (2) Every licensee or other person, when required so to do by an officer authorised under sub-section (1), shall be legally bound to produce such books, accounts or documents and to furnish such information.

Penalty for non-payment of tax. If the tax is not paid within the prescribed time, the licensee shall be liable to pay a penalty at the rate of one per cent of the amount of tax for each month or part thereof for the period for which the tax remains unpaid and such penalty shall be recoverable in the same manner as the tax.

Recovery of tax.

1. (1) The amount of tax due from a licensee may be recovered by the State Government in the same manner as an arrear of land revenue.
2. (2) The amount of tax due from a consumer may be recovered by the licensee from the consumer in the same manner as electricity charges.
3. (3) Where any tax is recovered by the licensee from the consumer, such tax shall be paid by the licensee to the State Government within such time and in such manner as may be prescribed.
4. (4) If the licensee fails to pay the tax within the prescribed time, he shall be liable to pay, in addition to the tax, interest at the rate of fifteen percent per annum on the amount of tax from the date on which it becomes due until the date of payment.

Refund of tax. If the State Government is satisfied that the tax has been paid in excess or erroneously, it shall, upon an application made in this behalf by the licensee or the consumer, as the case may be, in the prescribed form, refund the amount so paid to the applicant.

Offence and penalties Offence and penalties.—

1. (1) If any licensee or any other person—
   • (a) fails to keep accounts or to submit returns as required by the provisions of this Act or the rules made thereunder; or
   • (b) intentionally furnishes any incorrect return or information, or knowingly or recklessly makes any statement in any return or information furnished by him; or
   • (c) fails to pay to the State Government the tax collected or the tax payable under this Act within the prescribed time; he shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to five thousand rupees, or with both.
2. (2) If a licensee or any other person, having been convicted of an offence under this Act, is again convicted of an offence under this Act, he shall be punishable for the second and for each subsequent offence with imprisonment for a term which may extend to one year or with fine which may extend to ten thousand rupees, or with both.

Cognizance of offences.—

Offences by companies Offences by companies.

1. (1) 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 offence and shall be liable to be proceeded against and punished accordingly: Provided 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 he exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, 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. Explanation.—For the purpose 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 a partner in the firm.

Power to exempt. The State Government may, by notification in the Official Gazette, and subject to such conditions as it may deem fit to impose, exempt any class of persons or any class of sales of electricity from the payment of the tax under this Act, and may likewise cancel any such exemption.

Power of State Government to make rules.

1. (1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
2. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
   • (a) the form of returns to be furnished under section 8, and the particulars to be contained therein;
   • (b) the manner in which and the time within which the tax shall be paid under section 9;
   • (c) the procedure for the recovery of tax, penalty and other dues under section 10;
   • (d) the manner in which any order or notice under this Act shall be served;
   • (e) the procedure to be followed for the purpose of any proceedings under this Act;
   • (f) any other matter which is to be or may be prescribed.
3. (3) All rules made under this section shall be laid for not less than thirty days before the State Legislature as soon as possible after they are made and shall be subject to such modifications as the State Legislature may make during the session in which they are so laid or the session immediately following.
4. (4) Any modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.

Repeal and saving.

1. (1) The Bombay Electricity
   • (Duty) Act, 1958, in its application to the State of Gujarat is hereby repealed: Provided that the repeal shall not—
   • (a) affect the previous operation of the Act so repealed or anything duly done or suffered thereunder;
   • (b) affect any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed;
   • (c) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against or in respect of any breach of the rules made under any of the provisions of the Act so repealed;
   • (d) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed.
2. (2) Notwithstanding the repeal of the Act under sub-section (1), any rules, orders, notifications, appointments or declarations made or issued under the Act so repealed shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been made or issued under the corresponding provisions of this Act, and shall continue in force until superseded by any rules, orders, notifications, appointments or declarations made or issued under this Act.