3. Incidence and levy of electricity duty on electricity consumed.-

(1) There shall be levied for, and paid to, the State Government on the electricity consumed by a consumer, a duty (hereinafter referred to as the “electricity duty”) computed at such rate as may be fixed by State Government from time to time by Notification in the Official Gazette, but not exceeding 100 paise per unit. (2) The electricity duty shall not be levied on the electricity consumed,- (a) by the Government of India excluding the public undertakings; (b) by the State Government excluding the public undertakings; (c) in the construction, maintenance or operation of Railways by the Government of India; (d) where the electricity is generated at a voltage not exceeding 100 volts; (e) by the following classes of institutions, namely:- (i) hospitals or dispensaries, which are wholly run by the Government of India or the State Government; (ii) educational institutions, which are wholly run by the Government of India or the State Government; (iii) places of public worship, subject to the condition that the exemption under this clause shall not be applicable to electricity consumed in buildings or part of buildings, used for commercial or residential purposes.