LexThe KARNATAKA ELECTRICITY (TAXATION ON CONSUMPTION OR SALE) ACT, 1959.
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THE KARNATAKA ELECTRICITY (TAXATION ON CONSUMPTION OR
SALE) ACT, 1959.
ARRANGEMENT OF SECTIONS .
STATEMENT OF OBJECTS AND REASONS
Sections :
1. Short title, extent and commencement.
2. Definitions.
3. Levy of tax on electricity charnges etc.
4. Payment of electricity tax.
5. Books of account, etc.
6. Inspecting Officers.
7. Recoveries.
8. Power of State Government to notify exemptions and reductions of
tax.
8A. Dispensing with the performance of certain contracts.
9. Penalties.
9A. Appeal
9B. Protection of action taken in good faith
10. Power to make rules.
11. Rules and Notifications to be laid before State Legislature.
12. Repeal and savings.
13. Repeal of Karnataka Ordinance No. 2 of 1959 and savings.
14. Power to remove difficulties.
* * * *
STATEMENT OF OBJECTS AND REASONS.
I
Act 14 of 1959. —Different rates of taxation on consumption of electricity
have been in force since the Reorganization of States in the several areas
of the State and it has been considered necessary to have a uniform tax
structure all over the State. This uniform structure could not however be
introduced until the tariff structure was made uniform. The State Electricity
Board has introduced a uniform tariff structure all over the State with effect
from 1st July 1959. As it was necessary to introduce the uniform tax
structure simultaneously with the introduction of uniform rates, an Ordinance
was promulgated on 23rd June 1959. This Ordinance is generally on the
lines of the Mysore Electricity (Taxation on Consumption) Act, 1950 as
amended by the Mysore Electricity (Taxation on Consumption) Amendment
Act, 1957.
The present Bill is intended to replace the Ordinance.
(Published in Karnataka Gazette (Extraordinary) Part IV -2A dated 4th
August 1959, as No. 65 at page. 8.)
II
Amending Act 10 of 1970. —Section 3 of the Mysore Electricity
(Taxation on Consumption) Act, 1959 provides for the levy of a tax on units
of electrical energy consumed every month calculated at a rate not
exceeding three paise per unit of energy as may, by notification be specified
by Government in respect of different classes of consumers. It is now
proposed to enhance the tax on consumption of electricity leviable by
Government. The total rate including tax charged to the different classes of
consumers at present is lower than the rates in other States and it is also
necessary to raise resources to meet the Government’ s share of
expenditure for the Fourth Plan. In order to give effect to this proposal, it is
necessary to amend section 3 of the Act.
Hence this Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV -2A dated 28th
March 1970 as No. 110 at page 3.)
III
Amending Act 10 of 1979. —The rate of interest on belated payment of
electricity tax was not exceeding 12% per annum.
The rate of interest on belated payment of electricity charges due to
Karnataka Electricity Board was raised from 12% to 15% in 1972. The
difference in the two rates of interest has given rise to some confusion in
raising the demand and maintaining accounts by the Karnataka Electricity
Board. In order to overcome this difficulty, pointed out by Karnataka
Electricity Board, it was propos ed to enhance the rate of interest on belated
payment of electricity tax also from 12% to 15%.
As the Karnataka Legislative Assembly was not in session, an Ordinance
was promulgated for the said purpose.
This Bill seeks to replace the said Ordinance.
(Published in Karnataka Gazette (Extraordinary) Part IV -2A, dated 24th
January 1978, as No. 81, at page. 3.)
IV
Amending Act 5 of 1982. —Liability to collect and pay the tax under the
Karnataka Electricity (Taxation on Consumption) Act, 1959 is on the
licensee who is now required to keep separate entries relating to each
consumer. In order to simplify the accounting procedure the licensee may
show in his accounts only the total units of energy consumed and supplied
by him to the consumers and the tax payabl e thereon. It is also proposed to
increase the maximum rate of interest chargeable on arrears of tax from
15% to 24%.
Hence the Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV -2A dated 3rd
February 1982 as No. 73 at page 4.)
V
Amending Act 25 of 1984. — The total rate including tax charged to the
different classes of consumers in this State is lower than those in some
neighbouring States and it is necessary to raise additional resources to
meet the Government share of expenditure for the sixth plan.
It is therefore proposed to amend section 3 of the Karnataka Electricity
(Taxation on Consumption) Act, 1959 to enhance the upper limit of tax on
consumption of electricity leviable by Government from six paise to eight
paise per unit of energy.
Hence the Bill.
(Obtained from L.A. Bill No. 6 of 1984.)
VI
Amending Act 15 of 1985. —The Government of India have abolished
the Central Excise Duty on electricity with effect from 1st October 1984. The
proceeds of the excise duty were being transferred entirely to the State
Government by the Government of India. In order to compensate the loss to
the State Government on account of abolition of Excise Duty on electricity,
the electricity tax has been enhanced with effect from 1st O ctober 1984 to
commensurate with the loss caused thereof.
As the matter was urgent and since the Legislative Assembly was not in
session an Ordinance was promulgated providing for enhancement of
electricity tax from 8 paise to 12 paise.
This Bill seeks to replace the said Ordinance.
(Published in Karnataka Gazette (Extraordinary) dated 25th March 1985,
as No. 164 at page 3.)
VII
Amending Act 13 of 1990. —For attracting industries to our State by
rendering the products competitive, special agreements were entered into.
They provided for very low concessional tariff rates and occasionally for
reimbursement of the part of the tax collected from the consumer.
For quite sometime past our State has experienced acute shortage of
power, necessitating import of energy from other States at very high rates.
The cost of generation, transmission and also overhead charges have
steeply increased.
It has been noticed that instead of ploughing the concessions availed of
for the purpose of rendering the products competiti ve the industries have
desisted from passing on the benefits to the consumers of the products.
This has contributed to their unjust enrichment at the cost of the consumer
of the products and in a manner detrimental to public interest.
In Order to remedy the situation the Electricity Supply (Karnataka
Amendment) Bill, 1981 was enacted for the purpose of amending section 49
of the Electricity Supply Act, 1948.
It was understood that this enactment, apart from granting power to
impose an uniform tariff rate would also absolve the State Government from
the burden imposed by the contract to reimburse the tax collected above at
certain rates.
The validity of the Act was unsuccessfully challenged by the Indian
Aluminium Company Ltd., before t he High Court and the appeal preferred
by it is pending before the Supreme Court. However, in Writ Petition Nos.
27361 and 27362 of 1981, the High Court held that the above amendment
touched only the tariff under the Taxation Act and did not govern the
contractual terms for reimbursement or indemnification towards the hike in
the rate of tax on consumption. It has also held that the reimbursement or
indemnification cannot be refused on the grounds other than statutory.
The proposed law is intended to provi de a statutory ground to absolve
the State Government from the liability to make reimbursement and
indemnification, with a view to prevent the unjust enrichment of the industry
at the expense of the consumer of the goods and with a view to conserve
the resources of the State for promoting the interests of the public at large.
Hence the Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV -2A dated 29th
March 1990 as No. 157 at page 66 and 67.)
VIII
Amending Act 7 of 1998. —Section 4 of the Karnataka Electricity
(Taxation on Consumption) Act, 1959 requires every Licensee to collect and
pay to the State Government the Electricity tax payable under the Act. But,
this requirement is not applicable to consumption of energy generated by
means of generators not exceeding 5 kilowatts in capacity.
Rule 47A was inserted in the Indian Electricity Rules, 1956 in the year
1995 which requires that every consumer or occupier shall obtain approval
in writing of the Inspector before commissioning a generating plant of a
capacity exceeding 10 kilowatts.
In view of the aforesaid amendment to the Indian Electricity Rules, it was
considered necessary to enhance the existing limit of 5 Kw to 10 Kw by
amending Section 4 of the Karnataka Electricity (Taxation on Consumption)
Act, 1959.
As the matter was urgent and the Karnataka Legislative Council was not
in session, the Karnataka Electricity (Taxation on Consumption)
(Amendment) Ordinance, 1997 was promulgated to achieve the above
object.
This Bill seeks to replace the said ordinance.
(Published in Karnataka Gazette (Extraordinary) Part IV -2A dated 25th
August 1998 as No. 339 at page 2.)
IX
Amending Act 27 of 2001 .- It is considered necessary to amend the
Karnataka Electricity Board (Recovery of Dues) Act, 1976 and the
Karnataka Electricity
(Taxation on Consumption) Act, 1959 to incorporate the consequential
changes necessitated on account of the enactment of the Karnataka
Electricity Reform Act, 1999.
Hence the Bill.
(Vide L.A. Bill No. 16 of 2001 File No. SAMVYASHAE 19 SHASANA
2001)
X
Amending Act 7 of 2003. - To give effect to the proposals made in
the Budget Speech, it is considered necessa ry to amend the Karnataka
Agricultural Income Tax Act, 1957, the Karnataka Sales Tax Act, 1957, the
Karnataka Entertainments Tax Act, 1958, the Karnataka Tax on
Professions, Trades, Callings and Employment Act, 1976, the Karnataka
Tax on Luxuries Act, 1979, the Karnataka Tax on Entry of Goods Act, 1979
and the Karnataka Electricity (Taxation on Consumption) Act, 1959.
Hence the Bill.
(L.A. Bill No. 9 of 2003)
XI
Amending Act 5 of 2004. - During the review of power sector by the
Chief Minister on 4th September, 2003, it was decided to increase the hours
of 3 phase power supply in rural areas to 6 hours a day along with 10 hours
of single phase supply. This would require additional purchase of power and
would impose additional financial burden on KPTCL and the State
Government. Hence, it was decided to levy electricity tax on energy
consumed through captive power generation at the rate of 25 paise per unit
of energy.
As the matter was urgent and both the Houses of the Karnataka
State Legislature were not in Session the Karnataka Electricity (Taxation on
Consumption) (Amendment) Ordinance, 2003 was promulgated.
This Bill seeks to replace the above Ordinance.
Hence the Bill.
(LA Bill No.5 of 2004)
(Entry 53 of List II of the Seventh Schedule to the Constitution of
India)
XII
Amending Act 31 of 2013. - It is considered necessary to amend
the Karnataka Electricity (Taxation on Consumption) Act, 1959,-
(1) to levy and collect tax on sale of electricity also;
(2) to classify the auxiliary consumption, captive consumption and to
levy different rates of electricity tax on consumption of electricity
by such class of consumers;
(3) to levy of electricity tax on supply of electricity by non -licencee to
others;
(4) to provide a pr ovision for appeal by the aggrived person on the
orders of Inspecting Officer or Chief Electrical Inspector; and
(5) certain other consequential amendments are also made.
Hence, the Bill.
[L.A. Bill No.5 of 2013, File No. Samvyashae 68 Shasana 2012]
[Entries 53 of List II of the Seventh Schedule to the Constitution of
India.]
XIII
Amending Act 24 of 2018. - To give effect to the proposals made in
the Budget Speech of 2018-19, the taxation on consumption of Electricity is
proposed to be increased from 6% to 9%. Therefore, it is considered
necessary to amend the Karnataka Electricity (Taxation on Consumption or
Sale) Act, 1959.
Certain other consequential amendments are also made to give
clarity to captive Consumption.
Hence the Bill.
[L.A. Bill No.03 of 2018, File No. Samvyashae 17 Shasana 2018]
[entry 53 of List II of the Seventh Schedule to the Constitution of India.]
1[KARNATAKA]1 ACT No. 14 OF 1959.
(First published in the 1[Karnataka Gazette]1 on the Tenth day of
September, 1959.)
THE 1[KARNATAKA]1 ELECTRICITY (TAXATION ON CONSUMPTION
2[OR SALE]2) ACT, 1959.
(Received the assent of the Governor on the Twenty-fifth day of August,
1959.)
(As Amended by Karnataka Acts 10 of 1970, 10 of 1979, 5 of 1982, 25 of
1984, 15 of 1985, 13 of 1990, 7 of 1998, 7 of 2003, 5 of 2004, 31 of
2013 and 24 of 2018)
An Act to provide for the levy of tax on the consumption 2[or
sale]2 of electrical energy in the 1[State of Karnataka]1.
WHEREAS it is expedient to provide for the levy of tax on consumption
2[or sale]2 of electrical energy in the 1[State of Karnataka]1;
BE it enacted by the 1[Karnataka]1 State Legislature in the Tenth Year
of the Republic of India as follows:—
1. Adapted by the Karnataka Adaptations of Laws Order, 1973, w.e.f.01.11.1973.
2. Inserted by Act of 31of 2013 w.e.f.05.03.2013.
1. Short title, extent and commencement. - (1) This Act may be called
the 1[Karnataka]1 Electricity (Taxation on Consumption 2[or sale] 2) Act,
1959.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973, w.e.f.01.11.1973.
2. Inserted by Act of 31of 2013 w.e.f.05.03.2013.
(2) It extends to the whole of the 1[State of Karnataka]1.
(3) The provisions of this Act, except section 13, shall be deemed to have
come into force on the first day of July, 1959.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973, w.e.f.01.11.1973.
2. Definitions.- In this Act, unless the context otherwise requires,—
1[(1) ‘Auxiliary consumption’ means electricity consumed by any electrical
apparatus situated in a generating station, for generating electricity,
including Captive Generating Plant, Co- Generating Plant or any other
generating plant excluding any building used for housing the operating
staff of a generating station;
(1A) 'Captive consumption' means elec tricity consumed for own use to
the extent of not less than fifty one percent of 2[the electricity generated
by own generating plant or a captive generating plant] 2 situated within the
State of Karnataka determined on an annual basis.
Provided that in respect of an association the own consumption of
members to the extent of fifty one percent of the electricity generated
shall be proportionate to their ownership share in the power plant, within
a variation of ten percent determined on an annual basis.
but does not include,-
(a) the electricity consumed in any building used for housing the
operating staff; and
(b) the auxiliary consumption; and
(c) losses sustained in transformation and transmission.”
(1B) ‘Chief Electrical Inspector to Government' means the Chief Electrical
Inspector to Government appointed by the State Government under sub
section (1) of Section 162 of the Electricity Act, 2003 (Central Act 36 of
2003) who is the head of the Department of Electrical Inspectorate;]
1
1.Inserted by Act of 31of 2013 w.e.f.05.03.2013.
2. Substituted by Act 24 of 2018 w.e.f.19.07.2018
1[(1C) “consumer” includes a local Authority, company or any other person
to whom electricity is supplied by a licensee or by any other person on
payment of charges or otherwi se, and a licensee or other person who
consumes electricity generated by himself, but does not include a licensee
to whom electricity is supplied for supply to others, and the word “consume”
with its grammatical variations shall be construed accordingly;
Explanation.- Where a licensee to whom electricity is
supplied for supply to others, himself consumes any part of the
electricity he shall be deemed to be a consumer in resp ect of
electricity so consumed;]1
1. Substituted by Act 31 of 2013 w.e.f. 05.03.2013. 1[(2) ‘electricity’ means electrical energy,-
(a) generated, consumed, transmitted, supplied or traded
for any purposes; or
(b) used for any purpose except the transmission of
message.
(2A) 'electricity charges’ means, the electricity consumption charges
payable by the consumer at the prescribed rates on the units of electricity
supplied to such consumer;
(2B) ‘Inspecting Officer’ means any officer appointed by the State
Government as Inspecting Officer under section 6 of this Act)]
1.
1. Substituted by Act 31 of 2013 w.e.f. 05.03.2013.
(3)“licensee” means,-
1[(a) any person who has been granted or deemed to have been
granted a license under section 14 of the Electricity Act, 2003 (Central Act
36 of 2003) and includes any person who had obtained sanction in
accordance with section 14 of the Karnataka Electricity Reforms Act, 1999
(Karnataka Act 25 of 1999);]1
1. Substituted by Act 31 of 2013 w.e.f. 05.03.2013.
1[(b)]1
1. Omitted by Act 31 of 2013 w.e.f. 05.03.2013.
(c) the State Government when it is engaged in the business of
supplying 1[electricity]1;
1. Substituted by Act 31 of 2013 w.e.f. 05.03.2013.
1[(3A) ‘non-licensee’ means any person not being a licensee who
generates electricity either for his own consumption or for supply to any
other person for a charge or otherwise, where license is not required as per
the provisions of the Electricity Act, 2003 ( Central Act 36 of 2003), rules and
regulations made thereunder;]1
1.Inserted by Act of 31of 2013 w.e.f.05.03.2013.
(4) “notification” means a notification published in the Official Gazette;
1[(4a) 'supply' in relation to electricity includes sale of electricity to a
licensee or consumer.
Provided that sale does not include where electricity supplied t o
licensee for supply to others]1.
1.Inserted by Act of 31of 2013 w.e.f.05.03.2013.
(5)“prescribed” means prescribed by rules made under this Act.
1[(6) 'unit ’ means one kilowatt hour of electricity being measured by
means of energy meter or trivector meter or any of the methods adopted
to measure electricity]1.
1.Inserted by Act of 31of 2013 w.e.f.05.03.2013.
1[3. Levy of tax on 2[electricity charges etc.]2.- 4[3[(1)]3 Subject
to the provisions of this Act, there shall be levied and paid to the State
Government electricity tax on advolorem basis at 5[nine percent]5 on the
charges payable on electricity sold to or consumed by, any consumers
(excluding arrears) when electricity is suppli ed by licensee or non- licensee
through licensee or otherwise;
5[Provided that when any person,-
(a) consumes electricity generated by himself, the person shall be
liable to pay the electricity tax on the rate of charges of electricity levied
by the licensee to other similar category of consumers;
(b) supplies at the rate less than the rate of charges of electricity
levied by the licensee to other consumers or free of cost, the consumer
shall be liable to pay the electricity tax on the rate of charges of electricity
levied by the licensee to other similar category of consumers.]5
except,-
(i) the consumers under agricultural (irrigation pump sets upto and
inclusive of ten horse power);
(ii) Bhagya Jyothi and kutira jyothi categories upto the extent of free
consumption allowed by the State Government from time to time;
and
(iii) the consumers covered under sub-section (2).]4
1. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
2. Substituted by Act 5 of 2004 w.e.f. 16.10.2003.
3. Renumbered by Act 5 of 2004 w.e.f. 16.10.2003.
4. Substituted by Act 31 of 2013 w.e.f. 05.03.2013.
5. Substituted by Act 24 of 2018 w.e.f. 19.07.2018. 2[1[(2) Subject to the provisions of this Act, there shall be levied and paid to
the State Government by every non licensee electricity tax on all the units
of electricity consumed by himself at such rates specified by the State
Government, by notification, from time to time but not exceeding the rates
specified below, namely:-
(a) electricity tax not exceeding 50 paise per unit on captive
consumption;
(b) electricity tax not exceeding 25 paise per unit on auxiliary
consumption in a generating station whether Captive Gen erating
Plant or cogeneration plant or otherwise, for the auxiliary loads
exceeding 50 Kilo Watts.”.]
1 ]2
1. Inserted by Act 5 of 2004 w.e.f. 16.10.2003.
2. Substituted by Act 31 of 2013 w.e.f 05.03.2013.
4. Payment of electricity tax.- 1[(1)Every licensee shall collect and pay
to the State Government at the time and in the manner prescribed, the
electricity tax payable under this Act,-
(a) on the electricity charges included in the bill issued by him to the
consumer. The tax so payable shall be a first charge on the amounts
recoverable by the supplier for the electricity 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 the amounts
due to him for the electricity supplied by him he shall not be liable to pay tax
in respect of the electricity so supplied;
(b) on the units of electricity supplied to consumers by non licensee through
the licensee.]1
1. Substituted by Act 31 of 2013 w.e.f 05.03.2013
(2) A licensee may be granted 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 electricity tax incurred by such licensee:
Provided that the amount of rebate shall not exceed two per cent of the
electricity tax collected by the licensee. 3[(3) Every person who consumes electricity generated by himself, and or
who supplies electricity free of charge or otherwise to any other person
through his own system, shall pay, or collect and pay, as the case may be,
to the State Government, at the time and in the manner prescribed, the
electricity tax payable under section 3 .
2[ xxx]2]3
1. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
2. Omitted by Act 7 of 2003 w.e.f. 1.4.2003.
3. Substituted by Act 31 of 2013 w.e.f 05.03.2013
(4) When any consumer fails or neglects to pay at the time and in the
manner prescribed, the amount of electricity tax due from him, the licensee
or, as the case may be, the person supplying energy 2[ xxx ]2, may without
prejudice to the right of the State Government to recover the amount under
section 7, after giving not less than seven clear days’ notice in writing to
such person, cut off supply of energy to such person; and he may, for that
purpose, exercise the power conferred on a licensee by 3[sub-section (1) of
section 56 of the Electricity Act , 2003 (Central Act 36 of 2003) ]3, for the
recovery of any charge or sum due in respect of energy supplied by him.
(5) Nothing in this section shall apply,-
(i) to any person who generates energy for the purpose of supplying
it for the use of vehicles or vessels;
(ii) to the consumption of energy generated by means of generators
not exceeding 1[ten kilowatts]1 in capacity.
1. Substituted by Act 7 of 1998 w.e.f. 24.10.1997.
2. Omitted by the Act 31 of 2013 w,e,f.05.03.2013.
3. Substituted by Act 31 of 2013 w.e.f 05.03.2013
5. Books of account, etc.- Every licensee and every person not being a
licensee referred to in sub- section (3) of section 4 shall keep books of
account, in the prescribed form and submit to the State Government or to
the prescribed officer, returns in such form and at such times as may be
prescribed, 1[showing the units o f energy consumed by him and the total
units of energy supplied by him to consumers, and the 2[amount of tax
payable thereon under section 3]2 and such other particulars as may be
prescribed]1.
1. Substituted by Act 5 of 1982 w.e.f. 29.12.1981.
2. Substituted by Act 7 of 2003 w.e.f. 1.4.2003.
6.Inspecting Officers. - (1) The State Government may, by
notification, appoint Inspecting Officers to inspect the prescribed books of
account kept under section 5.
(2) The Inspecting Officers shall perform such duties and exercise such
powers as may be prescribed for the purpose of carrying into effect the
provisions of this Act and the rules made thereunder.
(3) Every Inspecting Officer appointed under this section shall be deemed
to be a public servant within the meaning of section 21 of the Indian Penal
Code (Central Act XLV of 1860), and the Prevention of Corruption Act, 1947
(Central Act II of 1947).
7.Recoveries.- Any sum due on account of electricity tax, if not pa id
at the time and in the manner prescribed, shall be deemed to be in arrears,
and thereupon such interest not exceeding 1[twenty-four per cent] 1 per
annum which the State Government may by general or special order fix
shall be payable on such sum; and the sum, together with any interest
thereon, shall be recoverable either through a civil court or as an arrear of
land revenue,—
(i) if the sum was pay able under sub -section (1) of section 4 either
from the consumer or, subject to the proviso to the said sub-section from the
licensee, at the option of the State Government;
(ii) if the sum was payable under sub- section (3) of section 4, either
from the consum er or from the person supplying energy 2[ xxx ]2, at the
option of the State Government, or from the person who generates energy
for his own consumption.
1. Substituted by Act 5 of 1982 w.e.f. 29.12.1981.
2. Omitted by Act 31 of 2013 w,e,f.05.03.2013.
1[(iii) the amount received or recovere d towards the arrears of tax or
revenue due to government shall be adjusted first towards penalty, balance
if any towards the outstanding interest on the tax or revenue. After such
adjustment the balance amount be adjusted towards tax or revenue;]1
1. Inserted by Act 31 of 2013 w,e,f.05.03.2013.
8. Power of State Government to notify exemptions and reductions
of tax.- The State Government may, by notification, make an exemption or
reduction in rate in respect of the tax payable under this Act,-
(i) on energy supplied or consumed for any specified purpose; or
(ii) by any class of consumers.
1[8A. Dispensing with the performance of certain contracts.-
Notwithstanding anything contained in any law for the time being in force or
in any judgment, decree or order of any Court or in any contract or
instrument having force by virtue of any such law, but subject to section 8,-
(a) the performance of any contract by the State Government or the
licensee in so far as it provides for reimbursement or indemnification in
favour of the consumer, of or for any amount levied on or collected from him
as tax under this Act shall be and shall be deemed always to have been
dispensed with and any amount due or payable by the State Government or
the licensee to a consumer by way of such reimbursement or
indemnification under the contract, including the amount of interest, if any,
shall be deemed to be wholly discharged.
(b) no Civil Court shall enter tain any suit or proceeding against the
State Government or the licensee for the recovery of any amount by way of
such reimbursement or indemnification including interest, if any;
(c) all suits and proceedings (including appeals, revisions,
attachments or execution proceedings) pending on the said date against the
State Government or the licensee for the recovery of any such amount shall
abate;
Provided that nothing in this section shall entitle the State Government or
the licensee for refund of any amount already paid by way of reimbursement
or indemnification before the commencement of the Karnataka Electricity
(Taxation on Consumption) (Amendment) Act, 1990]1.
1. Inserted by Act 13 of 1990 w.e.f. 21.11.1980.
9. Penalties.- (1) If any person liable under section 5 to keep books of
account or submit returns fails to keep or submit the same in the manner
prescribed or obstructs
1[an Inspecting officer]1 in the exercise of his powers
and duties under this Act, or contravenes any rule made under section 10,
he shall, on conviction, be punished with fine which may extend to
1[five
thousand]1 rupees.
1.Substituted by Act 31 of 2013 w.e.f 05.03.2013.
(2) (a) Where an offence under sub- section (1) 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 clause shall render any such
person liable to any punishment provided in the aforesaid sub- section 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.
(b) Notwithstanding anything contained in clause ( a) where an
offence under sub- section (1) 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 purposes of this sub- section,—
(a) “company” means a body corporate, and includes a firm or
other association of individuals; and
(c) “director” in relation to a firm means a partner of the firm.
1[9A. Appeal.- (1) Any person aggrieved by an order,-
(i) passed by any Inspecting Officer under the provisions of this
Act, may appeal to the Chief Electrical Inspector to
Government; and
(ii) passed by the Chief Electrical Inspector to Government under
the provisions of this Act, may appeal to the State
Government.
(2) The appeal shall be, in the prescribed form within such period, shall be
verified in the prescribed manner, and shall be accompanied by a charges
equal to five percent of the amount of the assessment objected to and
challan for having remitted not less than twenty five percent of the electricity
tax to be paid against assessment order under appeal.
9B. Protection of action taken in good faith: No suit, prosecution
or other proceeding shall lie against the State Government or any officer of
the State Government or any public servant for anything done or in good
faith purporting to be done or any action taken under this Act or the rules
made there under]
1
1. Inserted by Act 31 of 2013 w.e.f 05.03.2013.
10. Power to make rules. - (1) The State Government may, by
notification, make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, the State Government may make rules,-
(a) prescribing the time and manner of payment of the electricity tax
under sections 3 and 4;
(b) prescribing the form of the books of account to be kept and the
times at which, the form in which and officers to whom the returns required
by section 5 shall be submitted;
(c) prescribing the powers and duties of Inspecting Officers; and
(d) providing for any other matter for which there is no provision or
insufficient provision in this Act and for which provision is, in the opinion of
the State Government, necessary for giving effect to the provisions of this
Act.
11. Rules and Notifications to be laid before State Legislature.-
Every rule made under section 10 and every notification issued under
section 8 or 14 shall be laid as soon as may be after it is made or issued
before each House of the State Legislature while it is in session for a total
period of thirty days which may be comprised in one session or in two or
more sessions and if, before the ex piry of the said period, either House of
the State Legislature directs any modification in such rule or notification or
directs that such rule or notification shall not have effect, and if the
modification or direction is agreed to by the other House, the said rule or
notification, as the case may be, shall thereafter have effect only in such
modified form or be of no effect, as the case may be.
12. Repeal and savings. - The Mysore Electricity (Taxation on
Consumption) Act, 1950 (Mysore Act XX of 1950), as in force in the Mysore
Area, Part II of the Bombay Finance Act, 1932 (Bombay Act II of 1932) as in
force in the
1[Belgaum Area]1 and the Madras Electricity Duty Act, 1939
(Madras Act V of 1939), as in f orce in the 1[Mangalore and Kollegal Area,] 1
shall stand repealed:
Provided that such repeal shall not affect,-
(a) the previous operation of the said enactments or anything duly done
or suffered thereunder;
(b) any right, privilege, obligation or liabil ity, acquired, accrued or
incurred under the said enactments; or
(c) any penalty, forfeiture or punishment incurred in respect of any
offence committed against the said enactments; or
(d) any investigation, legal proceeding (including assessment
proceeding) or remedy in respect of any such right, privilege, obligation,
liability, 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.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973, w.e.f. 01.11.1973.
13. Repeal of 1[Karnataka]1 Ordinance No. 2 of 1959 and savings.-
The 1[Karnataka]1 Electricity (Taxation on Consumption) Ordinance, 1959,
is hereby repealed;
Notwithstanding such appeal,-
(i) any right, privilege, obligation or liability acquired, accrued or
incurred under the said Ordinance;
(ii) any penalty, forfeiture or punishment incurred in respect of any
offence committed against the said Ordinance; and
(iii) any appointment, notification, order, rule or form, made or issued
or anything done or any action whatsoever taken under the said Ordinance;
shall be deemed to have been acquired, accrued or incurred, or made,
issued, done or taken under this Act at the relevant time.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973, w.e.f.01.11.1973.
14. Power to remove difficulties. - (1) If any difficulty arises in giving
effect to the provisions of this Act in consequence of the transition to the
said provisions from the provisions of the enactments repealed by section
12 the State Government may, by notification, make such provisions as
appear to it to be necessary or expedient for removing the difficulty.
(2) If any difficulty arises in giving effect to the provisions of this Act
(otherwise than in relation to the transition from the provisions of the
enactments repealed by section 12), the State Government may, by
notification, make such provisions, not inconsistent with the purposes of this
Act as appear to it to be necessary or expedient for removing the difficulty.
* * * *
NOTIFICATION
No. DE 61 PSR 2001, Bangalore
Dated 10th January, 2002.
(Published in The Karnataka Gazette, Part IV-A Extraordinary No. 494 dated
4.4.2002.)
In exercise of the powers conferred by sub -section (2) of section 1 of
the Karnataka Electricity Board (Recovery of Dues) and other Law
(Amendment) Act, 2001 (Karnataka Act No. 27 of 2001) the Government of
Karnataka hereby appoints the 10th day of January 2002 to be the date on
which all the provisions of the said Act shall come into force.
By Order and in the name of the Governor of Karnataka,
B.K. Srinivasa Rao
Under Secretary to Government,
Energy Department.
*****
KARNATAKA ACT NO. 24 OF 2018
(First Published in the Karnataka Gazette Extra -ordinary on the 19 th Day of July 2018)
THE KARNATAKA ELECTRICITY (TAXATION ON CONSUMPTION OR SALE)
(AMENDMENT) ACT, 2018
(Received the assent of the Governor on the 18 th day of July 2018)
An Act further to amend the Karnataka Electricity (Taxation on
Consumption or Sale) Act, 1959.
Whereas it is expedient further to amend the Karnataka Electricity (Taxation
on Consumption or Sale) Act, 1959 (Karnataka Act 14 of 1959) for the purposes
hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the sixty ninth year of
the Republic of India as follows:-
1. Short title and commencement. - (1) This Act may be called the
Karnataka Electricity (Taxation on Consumption or Sale) (Amendment) Act, 2018.
(2) It shall come into force at once.
Sections 2 and 3 are incorporated in the principal Act