The Gujarat Green Cess Act, 2011.

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Extra No. 3          REGISTERED No. G/GNR/2 
 
  © 
 
The Gujarat Government Gazette 
EXTRAORDINARY 
PUBLISHED BY AUTHORITY 
Vol. LII] WEDNESDAY,  MARCH  30,  2011/CAITRA 9,  1932 
Separate paging is given to this Part in order that it may be filed as a Separate Compilation. 
 
PART  IV 
Acts of Gujarat Legislature and Ordinances promulgated and Regulations made 
by the Governor.   
 
 The following Act of  the Gujarat legislature, having been assented to 
by the Governor on the 30th March, 2011, is hereby published for general 
information. 
 
C. J. GOTHI, 
Secretary to the Government of Gujarat, 
Legislative and Parliamentary Affairs Department. 
THE GUJARAT ACT NO. 3 OF, 2011. 
 
(First published, after having received the assent of the Governor, in 
the "Gujarat Government Gazette", on the 30th March, 2011) 
 
AN  ACT 
 
to provide for levy of cess  on generation of electricity other than renewable 
energy for creation of a fund for protecting environment and  promoting the 
generation of electricity through renewable sources in the State of  Gujarat 
and for the  matters connected therewith and incidental thereto. 
It is hereby enacted in the Sixty-second Year of the Republic of India 
as follows :- 
CHAPTER  I 
PRELIMINARY 
1. (1) This Act may be called the Gujarat Green Cess Act, 2011. 
 
(2) It extends to the whole of the State of Gujarat. 
 
(3) This section shall come into force at once and the remaining provisions 
shall come into force on such date as the State Government may, by 
notification in Official Gazette, appoint.  
IV-Ex.,-3-1    3-1 
Short title,  
extent and 
commencement. 
 
 
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3-2 GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 [PART- IV  
 2. In this Act, unless the context otherwise requires, - 
(a) “cess” means a Green cess levied on generation of electricity in the 
State under section 3; 
(b) “Collector” means the Collector of Green Cess appointed under section  8; 
(c) “captive generating plant” shall have the meaning as defined in clause 
(8) of section 2 of the Electricity Act, 2003; 
(d) “electricity” means the electrical energy generated;  
(e) “fund” means the Green Energy Fund established under sub-section (1) 
of section 5; 
(f) “generating company” means any company or body corporate or 
association or body of individuals, whether incorporated or not, or any 
individual or artificial juridical person, which owns or operates or 
maintains a generating station  or a captive generating plant or stand-
by generating plant; 
(g) “generation of energy” means gross generation of electricity including 
auxiliary consumption and the electricity lost due to technical or any 
other fault in any generating station, captive generating plant or stand-
by generating plant in the State; 
 
(h) “generating station” means any station for generating electricity, 
including any building and plant with step-up transformer, switch-gear, 
switch yard, cables or other appurtenant equipment, if any, use for that 
purpose and the site thereof; a site intended to be used for a generating 
station and any building used for housing the operating staff of a 
generating station; 
 
(i) “Inspector” means the person appointed as such under section 8; 
 
(j) “prescribed” means prescribed by rules made under this Act; 
 
(k) “renewable energy” means the electricity generated from the solar, 
wind, bio-energy, liquid-solid wastes, hydro power plants or by the use 
of baggass or agro-wastes or electricity generated from such other 
sources as the State Government may by notification in the Official 
Gazette, specify; 
(l) “rules” means rules made under this Act. 
 
 
 
 
 
Definitions 
36 of 2003. 
 
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PART- IV] GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 3-3 
 CHAPTER   II 
LEVY OF GREEN CESS  
 
3. (1) There shall be levied and collected a cess for the purposes of this 
Act, on generation of electricity except on generation of renewable energy by 
the generating company at the generating station or at the captive generating 
plant or the stand by generating plant. 
 
(2) Such cess under sub-section (1) shall be levied and payable on the 
electricity generated in the State of Gujarat irrespective of the fact whether 
such electricity is consumed within the State or not. 
  
(3) Such cess under sub-section (1) shall be levied in such manner and at 
such rate not exceeding twenty paise per unit of the electricity generated as 
may be prescribed. 
(4) The State Government may by notification in the Official Gazette, 
exempt from payment of the cess, the generating company having aggregate 
installed capacity of not more than one thousand kilowatts. 
 
(5) The cess levied under sub-section (1) shall be payable by the 
generating company. 
4. The proceeds of the cess, interest and penalty recovered under this Act 
shall first be credited to the Consolidated Fund of the State, and after 
deduction of the expenses of collection and recovery there from shall, under 
appropriation duly made by law in this behalf, be entered in and transferred to 
a separate fund called the Green Energy Fund, for being utilized exclusively 
for the purposes of this Act. 
 
5.  (1) There shall be established a fund called "Green Energy Fund" for 
the purpose of this Act. 
  
(2) The Fund shall be under the control of the State Government and there 
shall be credited therein-  
 
(a) any sums of money paid under section 4; 
(b) the sums by way of any grant by the State Government. 
  
6. (1) The Fund shall be utilised for -     
(a) promoting the generation of electricity through renewable 
energy,  
 
(b) purchase of non-conventional energy, and  
 
(c) taking initiatives for protecting environment in the State. 
 
(2) The State Government shall have the power to administer the Fund and 
shall take such decisions as may be required for the proper utilization of the 
Fund. 
 
Levy and 
collection 
of cess. 
 
Crediting of 
proceeds to 
Consolidate
d Fund of 
State. 
Establishme
nt of Green 
Energy 
Fund. 
 
Management 
of  Fund. 
 
 
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3-4 GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 [PART- IV  
 (3) The State Government shall also have the power to allocate and 
disburse such sums from the Fund as it considers necessary to the concerned 
Departments responsible for achieving the objects of this Act.  
 
CHAPTER   III 
REGISTRATION 
 
7. (1)    Whoever generates electricity in the State shall be required to 
apply for and obtain a registration certificate from the Collector of Green 
Cess: 
  
  Provided that the collector may, subject to such conditions as may be 
prescribed, grant exemption from obtaining the registration to a person or to a 
class of persons having regard to the provisions of sub-section (4) of section 
3. 
 
(2) The application for the registration shall be made in such form and 
within such period as may be prescribed. 
 
(3) On receipt of an application for registration under sub-section (2), the 
Collector on its satisfaction, may issue a certificate of registration in such form 
as may be prescribed. 
CHAPTER   IV 
CESS AUTHORITIES 
8. (1)   For carrying out the purpose of this Act, the State Government 
shall appoint a person to be the Collector of Green Cess for the whole of the 
State of Gujarat and such other officers and employees to assist the Collector 
as the State Government may think fit who shall exercise such powers and 
perform such duties as may be conferred or imposed on them by the Collector. 
(2) The State Government may by notification in the Official Gazette, 
appoint any persons as it thinks fit to be Inspectors for the purposes of this Act 
who shall exercise such powers and perform such duties as may be conferred 
or imposed on them by or under this Act within the limits of such area as the 
State Government may specify therein. 
 
9. (1) The Collector or the Inspector may for the purposes of this Act- 
 
(i) require production for inspection of such books and records as 
may be necessary for ascertaining or verifying the amount of 
Cess leviable under this Act; 
(ii) enter and search any premises where electricity is or is believed 
to be generated for the purpose of- 
(a) verifying the statements made in the books of account 
kept, and returns submitted, 
Registration. 
Cess 
authorities. 
Powers and 
duties of 
Cess 
Authorities. 
 
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PART- IV] GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 3-5 
 (b) reading and getting tested the various meters and 
generator panels in the prescribed manner, 
(c) verifying the particulars required in connection with the 
levy of cess, 
(iii) exercise such other powers and perform such other duties as 
may be necessary for  carrying out the purposes of this Act or 
the rules made thereunder. 
 
(2) All searches made under sub-section (1) shall be made in accordance 
with the provisions of the Code of Criminal Procedure, 1973.  
 
CHAPTER  V 
BOOKS OF ACCOUNTS, RETURNS AND ASSESSMENT 
10. (1) Each generating company shall install a meter for recording gross 
generation of electricity as provided in Central Electricity Authority 
(Installation and Operation of meters) Regulations, 2006 and same shall be 
maintained and operated in a manner as may be prescribed. 
(2) Each generating company liable to pay cess as per the provisions of 
this Act, shall keep and maintain books of account in the prescribed form and 
shall submit to the Collector, returns in such form and at such times as may be 
prescribed, showing the units of energy generated, the amount of cess payable 
and that paid, fuel used and such other details as may be prescribed. 
11. (1) The amount of cess due from a generating company shall be 
assessed by the Collector in the manner as may be prescribed. 
(2) If the Collector is satisfied that the returns furnished by a generating 
company are correct and complete, he shall assess the amount of cess due 
from the generating company on the basis of such returns. 
 
(3) If the Collector is not satisfied that the returns furnished in respect of 
any period are correct and complete, he shall serve on such generating 
company a notice requiring it to produce or caused to be produced all 
evidences on which such generating company relies in support of his returns. 
The Collector shall after considering all the evidences which may be 
produced, assess the amount of cess due from the generating company. 
 
(4) If a generating company fails to respond to the notice within the time 
limit as stated in the notice issued under sub-section (3), the Collector shall 
assess, to the best of his judgment, the amount of cess due from it. 
 
 
CHAPTER  VI 
 
RECOVERY 
 
12. (1) Where a generating company, which is liable to pay cess in the 
time-limit as prescribed, does not pay such amount of cess within such time-
limit, there shall be paid by such generating company, for the period 
2 of 1974. 
Accounts. 
 
Assessment. 
 
Recovery. 
 
 
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3-6 GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 [PART- IV  
 commencing on the date of expiry of the aforesaid period and ending on the 
date of payment of the amount of cess, simple interest at the rate as may be 
prescribed, not exceeding eighteen per cent. per annum.  
  
(2) All sums payable as cess or interest under this Act, if not paid within 
the prescribed period  shall be deemed to be in arrears, and thereupon the 
amount of cess along with amount of interest to be levied under this Act, shall 
be recoverable as an arrear of land revenue. 
 
(3) Where any generating company is liable to pay any amount on account 
of this cess, penalty or interest, and it pays amount less than amount due, the 
amount so paid shall be first applied towards the amount of interest, thereafter 
the balance, if any, towards penalty and thereafter the balance, if any, towards 
the amount of cess. 
 
CHAPTER VII 
PENALTIES 
13. If any generating company fails to obtain the registration certificate as 
required under section 7 shall on conviction be punished with fine which may 
extend to rupees one lakh per one Megawatt of the aggregate installed capacity 
of such generating company and shall also be liable to pay such cess 
alongwith interest referred to in section 12 for the generation of electricity as 
is otherwise payable. 
 
14. If any generating company- 
 
(a) fails to keep books of account or to submit returns in 
accordance with the provisions of this Act and rules made there 
under, or 
(b) produces false accounts, registers or documents, or knowingly 
furnishes false information, or 
(c)  wilfully obstructs the Collector or any inspector in the exercise 
of the powers conferred upon him by or under this Act, or 
(d)  aids or abets any person in the commission of any act specified 
in clause (a), (b)  or (c)  of this section,   
 
shall on conviction, be punished with fine which may extend to ten 
thousand rupees. 
 
15.  (1)  Whoever, dishonestly,- 
  
(i) tampers with a meter, installs or uses a tampered meter, installs 
or uses current reversing transformer, loop connection or 
resorts to any other device or method which interferes with 
accurate or proper registration, calibration or metering of 
electric current or otherwise results in a manner whereby 
electricity generated is not correctly recorded; or 
Penalty. 
Penalty for 
tempering 
with meters, 
etc. 
Penalty for 
failure to 
keep books of 
accounts, etc. 
 
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PART- IV] GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 3-7 
 (ii) damages or destroys an electric meter, apparatus, equipments or 
causes or allows any of them to be so damaged or destroyed as 
to interfere with the proper or accurate metering and recording 
of electricity for the purpose of this Act, or 
(iii) uses such means which can lead to the obstruction of the 
correct reading of the electricity generated, 
 
shall be punishable with fine which shall not be less than on the first 
detection, the financial gain on account of such transgression and in 
the event of second or subsequent detection the fine imposed shall not 
be less than two times the financial gain on account of such 
transgression. 
(2) For calculation of such financial gain, it shall be presumed that such 
generating company has been generating electricity continuously for a period 
of- 
(a) 1 year in case where aggregate installed capacity is less than    
10 MW, and  
(b) 2 years in other cases, 
 
immediately preceding the date of inspection or detection, whichever is 
earlier, unless contrary is proved. It shall also be presumed that such 
generating company was generating electricity at full installed capacity 
throughout such period. 
 
CHAPTER VIII 
APPEAL AND REVISION 
 
16. (1) Any generating company or a person aggrieved by the decision of 
the Collector under sections 11, 13, 14 and 15 may prefer an appeal to the 
State Government within sixty days from the date of such decision : 
 Provided that no appeal against an order of assessment under section 
11 shall be entertained by the State Government unless such appeal is 
accompanied by satisfactory proof of payment of fifty per cent. of cess 
directed to be paid by the Collector in respect of which an appeal has been 
preferred.  
(2) Where no appeal is preferred against a decision of the Collector, the 
State Government may of its own motion or otherwise within one year from 
the date of any order passed by the Collector call for and examine the record 
of any proceedings of the Collector for the purpose of satisfying itself as to the 
legality or proprietary of any decision or order passed and as to the regularity 
of the proceedings of the Collector and pass such order thereon as it thinks fit. 
 
(3) The order passed by the State Government in appeal or revision shall 
be final and shall not be called in question in any court of law. 
 
 
Appeal and 
revision. 
 
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3-8 GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 [PART- IV  
 CHAPTER   IX 
PENALTIES NOT TO AFFECT OTHER LIABILITIES 
17. The penalties imposed under this Act shall be in addition to, and not in 
derogation of, any offence or liability in respect of any contravention 
of the provisions of any other Act. 
 
CHAPTER   X 
MISCELLENEOUS  
18.  The Collector, Inspectors and other officers and employees appointed 
under this Act shall be deemed to be the public servants within the meaning of 
section 21 of the Indian Penal Code. 
 
19. No suit, prosecution or other legal proceedings shall lie against any 
officer or employee appointed under this Act for anything which is in good 
faith done or intended to be done in pursuance of the provisions of this Act or 
any rules made there under.    
20. (1)  The State Government may make by notification in the Official 
Gazette, rules generally for carrying out the purposes of this Act. 
(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:- 
(a) manner and rate for levy and collection of cess under sub-
section (3) of section 3; 
(b) conditions for grant of exemption for obtaining registration 
under sub-section (1) of section 7; 
(c) form of application for registration and period under sub-
section (2) of section 7; 
(d) form of certificate of registration under sub-section (3) of 
section 7; 
(e)  other powers and duties of cess authorities under section 9; 
(f) manner and form for maintaining books of accounts and returns 
and submission of returns under section 10; 
(g) manner in which the assessment shall be made by the Collector; 
(h)  rate of simple interest payable under sub-section (1) of section 
12; or 
(i)  such other matters which is to be or may be, prescribed under 
this Act. 
(3)  The rules made under this section shall, subject to the condition of 
previous publication, be published in the Official Gazette: 
Officers and 
employees to 
be public 
servants. 
Indemnity. 
Power to 
make rules 
45 of 1860. 
Penalties not 
to affect 
other 
liabilities. 
 
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PART- IV] GUJARAT GOVERNMENT GAZETTE, Ex, 30-3-2011 3-9 
  Provided that if the State Government is satisfied that circumstances 
exist which render it necessary to take immediate action, it may dispense with 
the previous publication of any rule to be made under this section. 
(4) All rules made under this section shall be laid for not less than thirty 
days before the State Legislature as soon as may be after they are made, and 
shall be subject to recession by the State Legislature or to such modification as 
the State Legislature may make during the session in which they are so laid or 
the session immediately following. 
(5) Any rescission or modification made by the State Legislature shall be 
published in the Official Gazette and shall thereupon take effect. 
 
21. If any difficulty arises in giving effect to the provisions of this Act, the 
State Government may, by general or special order published in the Official 
Gazette, make such provisions not inconsistent with the provisions of this Act, 
as appear to it to be necessary or expedient for removal of difficulty: 
 
Provided that no such order shall be made under this section after the 
expiry of two years from the date of the commencement of this Act. 
 
-------------- 
 
Government Central Press, Gandhinagar. 
 
 
Power to 
remove 
difficulties. 

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