The West Bengal Duty On Inter-state River Valley Authority Electricity Act, 1973

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act VII of 1973 
THE WEST BENGAL DUTY ON INTER-STATE 
RIVER VALLEY AUTHORITY ELECTRICITY 
ACT, 1973. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta 
Gazette, Extraordinary, of the 19th March, 1973.] 
[19th March, 1973.] 
An Act to provide for the levy of duty on the consumption, in West Bengal, 
of energy generated, distributed, sold or consumed by an inter-State 
river valley authority and for matters connected therewith or 
incidental thereto. 
WHEREAS it is expedient to provide for the levy of duty on the 
consumption, in West Bengal, of energy generated, distributed, sold or 
consumed by an inter-State river valley authority and for matters connected 
therewith or incidental thereto; 
It is hereby enacted in the Twenty-fourth Year of the Republic of 
India, by the Legislature of West Bengal, as follows:- 
1. (1) This Act may be called the West Bengal Duty on Inter-State 
River Valley Authority Electricity Act, 1973. 
(2) It extends to the whole of West Bengal. 
(3) It shall be deemed to have come into force on the 1st day of 
February, 1958. 
Short title, 
extent and 
commence-
ment. 
2. In this Act, unless the context otherwise requires,— 	 Definitions. 
(a) "consumer" means any person, other than a distributing 
licensee, who is supplied with energy by a licensee; 
(b) "energy" means electrical energy generated, distributed, 
sold or consumed by an inter-State river valley 
authority; 
(c) "inter-State river valley authority" means an authority 
established by or under any law in force immediately before 
the commencement of the Constitution of India or any law 
made by Parliament for regulating or developing any 
inter-State river valley or river; 
15 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
[West Ben. Act 
(Sections 3, 4.) 
Duty on 
units of 
energy 
consumed. 
Payment of 
electricity 
duty. 
(d) "licensee" means any person licensed under Part II of the 
Indian Electricity Act, 1910, to supply energy and includes 9 of 1910. 
any person who has obtained the sanction of the State 
Government under section 28 of that Act and also includes 
the West Bengal State Electricity Board constituted under 
section 5 of the Electricity (Supply) Act, 1948; 	 54 of 1948. 
(e) "prescribed" means prescribed by rules made under this 
Act; 
(f) "Schedule" means a Schedule to this Act. 
3. There shall be charged, levied and paid to the State Government 
a duty (hereinafter referred to as "electricity duty"), on the units of 
energy consumed, at the rates in force from time to time as specified 
in the First Schedule: 
Provided that electricity duty shall not be leviable on the units of 
energy consumed— 
(a) by any Government, except to the extent specified in the 
Second Schedule; 
(b) by, or in respect of, any— 
(i) railway administration as defined in the Indian 
Railways Act, 1890; 	 9 of 1890. 
(ii) inter-State river valley authority; 
(iii) local authority; 
(iv) institution or class of persons specified in the Second 
Schedule, 
except to the extent specified in the Second Schedule; 
(c) in any— 
(i) place of public worship, public burial or burning ground 
or other place for the disposal of the dead; 
(ii) premises declared by the State Government to be used 
exclusively for the purposes of public charity; 
(iii) vessel, whether sea-going or inland. 
4. In the case of energy which is— 
(a) received by a licensee and supplied by him to consumers, 
the licensee shall collect and pay to the State Government, 
at the prescribed time and in the prescribed manner, the 
electricity duty payable under section 3 on the units of 
energy supplied by him to consumers and the duty so payable 
shall be a first charge on the amount recoverable by such 
licensee for the energy supplied by him to consumers and 
such amount shall be deemed to be a debt due by him to 
the State Government: 
16 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
VII of 1973.] 
(Section 5.) 
Provided that such licensee shall not be liable to pay the 
duty in respect of any energy supplied by him for which he 
has been unable to recover any amount due to him from the 
consumer; 
(b) received by any other person (not being an employee of an 
inter-State river valley authority or any other person in the 
occupation of any premises owned or controlled by such 
authority) who, having obtained such energy directly from 
an inter-State river valley authority, either consumes such 
energy or distributes such energy, whether wholly or partly, 
to any other person, the first mentioned person shall pay to 
the State Government, at the prescribed time and in the 
prescribed manner, the electricity duty payable under section 
3 on the units of energy received by him; 
(c) supplied by any inter-State river valley authority, to its 
employees, or to any other person, in the occupation of any 
premises owned or controlled by it, such authority shall pay 
to the State Government, at the prescribed time and in the 
prescribed manner, the electricity duty payable under 
section 3 on the units of energy so supplied by it. 
5. (1) Where any energy— 
(a) received by a person (other than a licensee) is supplied by 
such person to any of his employees or to any other person, 
or 
(b) is consumed by an inter-State river valley authority by 
supplying it to any premises owned or controlled by it, 
which is in the occupation— 
(i) of any of its employees for residential purposes, or 
(ii) of any other person, cs 
(iii) of both, 
such person or authority shall be entitled to recover an 
amount, equal to the amount of the electricity duty 
payable under section 3, from the employee or other 
person to whom such energy was supplied: 
Provided that nothing shall be recoverable under this 
sub-section from an employee referred to in clause (a) or clause 
(b), if the employee has not used in any one month more units 
of energy than the units exempted, in the case of a consumer, 
under clause (6) of the Second Schedule. 
(2) Where an amount equal to the amount of the electricity duty 
payable under section 3 in respect of any energy used by an employee 
is not recoverable from him by reason of the proviso to sub-section (1), 
Right to 
recover 
electricity 
duty in 
respect of 
energy 
supplied to 
certain 
persons. 
17 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
[West Ben. Act 
(Sections 6-8.) 
Power of 
licensee to 
recover 
electricity 
duty from 
consumers. 
Obligation 
of licensees 
to keep 
books of 
account and 
submit 
returns. 
the person (other than a licensee) or an inter-State river valley authority, 
as the case may be, supplying such energy, shall, notwithstanding 
anything contained in clause (b) or clause (c) of section 4, be entitled 
to deduct, the amount not so recoverable, from the amount of the 
electricity duty payable by him or it under section 3. 
(3) The person referred to in clause (b) of section 4 or the 
inter-State river valley authority referred to in clause (c) of section 4 
shall be entitled to remission of duty payable by him or by it in 
respect of the amount which he or it has been unable to recover under 
sub-section (1). 
(4) Every authority or person referred to in this section shall, for the 
purposes of determining the amount liable to be deducted under sub-
section (2) or the amount of remission of duty under sub-section (3) 
maintain such records and registers as may be prescribed. 
6. (1) Where any consumer fails or neglects to pay at the prescribed 
time and in the prescribed manner the amount of electricity duty due 
from him, the licensee may, without prejudice to the rights of the State 
Government to receive the amount under section 9, and after giving not 
less than seven clear days' notice in writing to such person, cut off the 
supply of energy to such person, 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 9 of 19 la 
in respect of energy supplied by him. 
(2) The licensee shall be entitled, for his cost of collection of the 
duty, to a rebate of such percentage as may be determined by the State 
Government on the amount of the duty collected and paid by him under 
section 4. 
7. A licensee, who is liable to pay electricity duty under section 4, 
shall, unless he is exempt from payment of such duty under the proviso 
to section 3, keep books of account in the prescribed form and submit 
to the State Government or to the prescribed offcer returns in the prescribed 
form at the prescribed time, showing the units of energy supplied, 
received or consumed by him, as the case may be, and the amount of 
the duty payable thereon and recovered or paid by him under section 4. 
Inspecting 	 8. (1) The State Government may, by notification in the Official officers. 	 Gazette, appoint inspecting officers to inspect books of account required 
by section 7 to be kept and such officers shall perform such duties and 
exercise such powers as may be prescribed for the purpose carrying into 
effect the provisions of this Act and the rules made thereunder. 
18 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
VII of 1973.1 
(Sections 9-11.) 
(2) Every officer appointed under this section shall be deemed 
to be a public servant within the meaning of section 21 of the 
45 of 1860. Indian Penal Code. 
9. Any sum due on account of electricity duty if not paid at the Recoveries. 
prescribed time and in the prescribed manner, shall be recoverable as 
a public demand— 
(a) in the case of energy supplied by a licensee, at the discretion 
of the State Government, either from the consumer, or, 
subject to the proviso to clause (a) of section 4, from the 
licensee; 
(b) in the case of other energy, from the person or inter-State 
river valley authority liable to pay such duty under clause 
(b) or clause (c) of section 4. 
10. (1) If a licensee required by section 7 to keep books of account 
or to submit returns fails to keep such books in the prescribed form, or 
to submit such returns in the prescribed form or at the prescribed time, 
such licensee shall be liable, on conviction before a Magistrate, to a fine 
not exceeding one thousand rupees. 
(2) If any person intentionally obstructs an inspecting officer 
appointed under section 8 in the exercise of his powers and the discharge 
of his functions under this Act and the rules made thereunder, he shall 
be liable, on conviction before a Magistrate, to a fine not exceeding one 
thousand rupees. 
Penalties. 
11. (1) The State Government may, subject to the provisions Power to 
of sub-section (3), make rules to carry out the provisions of this make rules.  
Act. 
(2) In particular, and without prejudice to the generality of the 
foregoing powers, such rules may provide for all or any of the following 
matters, namely:— 
(a) the time and manner of payment of electricity duty under 
section 4 or section 5; 
(b) the form of the books of account to be kept, the times at 
which, the form in which and the officer to whom, returns 
required by section 7 shall be submitted; 
(c) the duties and powers of an inspecting officer; and 
(d) any other matter which is required to be, or may be, 
prescribed. 
(3) No rules shall be made under this section to effect the rates and 
other incidents of the electricity duty payable under section 3. 
19 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
[West Ben. Act 
Collections 
of arrears in 
instalments. 
Validation 
of levy or 
recovery of 
electricity 
duty under 
Bengal Act 
X of 1935. 
Repeal and 
savings. 
(Sections 12-14.—The First Schedule.) 
(4) In making a rule under this section the State Government may 
provide that a breach thereof shall be punishable with a fine not exceeding 
one thousand rupees. 
12. Any duty which is payable under section 3 for the consumption 
of energy at any time during the period commencing on the 1st day of 
February, 1958, and ending on the 31st day of March, 1970, shall be 
paid to the State Government in six equal annual instalments. 
13. If any electricity duty leviable or sum recoverable under the 
provisions of this Act, has, prior to the publication of this Act, been 
levied or recovered under the provisions of the Bengal Electricity Duty 
Act, 1935, such duty or sum shall be deemed to have been validly levied 
or recovered as if such levy or recovery were made under the provisions 
of this Act. 
14. (1) The West Bengal Duty on Inter-State River Valley Authority 
Electricity (Re-enacting) Act, 1972, is hereby repealed. 
(2) Anything done or any action taken (including any appointment 
or rule made, any proceedings commenced, any penalty incurred or any 
punishment awarded) under the West Bengal Duty on Inter-State River 
Valley Authority Electricity Act, 1971, or under the said Act as re-
enacted by the West Bengal Duty on Inter-State River Valley Authority 
Electricity (Re-enacting) Act, 1972, shall continue to be in force and 
shall be deemed to have been done, taken, made, commenced, incurred 
or awarded, as the case may be, under this Act. 
President's 
Act 3 of 
1972. 
President's 
Act 5 of 
1971. 
THE FIRST SCHEDULE 
(See section 3.) 
RATES OF ELECTRICITY DUTY 
PART A 
For lights and fans 
SECTION I 
Rates in force from the 1st February, 1958 to the 
28th March, 1966 
(1) In respect of every premises not falling under article (2)—
(a) when the net charge of the licensee for the supply of energy 
for the purposes of lights, or fans, or both, does not exceed 
nineteen paise for each unit of energy consumed, the rates 
of electricity duty shall be as follows, namely:— 
20 
VII of 1973.] 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
(The First Schedule.) 
in the case of a consumer whose consumption of energy 
during the month to which the calculation of electricity duty 
relates, 
(i) does not exceed fifteen units—Nil, 
(ii) exceeds fifteen units but does not exceed fifty units 
—three paise for each unit of energy consumed, 
(iii) exceeds fifty units—six paise for each unit of energy 
consumed, 
(b) In other cases—three paise for each unit of energy consumed. 
(2) In respect of every premises where the supply of energy by a 
licensee is unmetered, for— 
Poise per 
mensem. 
Every lamp of less than 30 watts 	 12 
Every lamp of 30 watts or more but less 	 19 
than 40 watts. 
Every lamp of 40 watts or more but less 	 25 
than 60 watts. 
Every lamp of 60 watts or more but not 	 37 
exceeding 100 watts. 
And for every additional 15 watts or fraction 	 6 
thereof in excess of 100 watts in any lamp. 
SECTION II 
Rates in force from the 29th March, 1966 to the 
15th November, 1967 
(1) In respect of every premises not falling under article (2),— 
(a) when the net charge of the licensee for the supply of energy 
for the purposes of lights, or fans, or both, is less than 
twenty-five paise for each unit of energy consumed, the 
rates of electricity duty shall be as follows, namely:— 
in the case of a consumer whose consumption of energy 
during the month to which the calculation of duty relates, 
(i) does not exceed fifteen units—Nil, 
(ii) exceeds fifteen units but does not exceed fifty units 
—three paise for each unit of energy consumed, 
(iii) exceeds fifty units—six paise for each unit of energy 
consumed, 
(b) in other cases—three paise for each unit of energy consumed. 
21 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
[West Ben. Act 
(The First Schedule.) 
(2) In respect of every premises where the supply of energy by a 
licensee is unmetered, for— 
Paise per 
mensem. 
Every lamp of less than 30 watts 	 12 
Every lamp of 30 watts or more but less 	 19 
than 40 watts. 
Every lamp of 40 watts or more but less 	 25 
than 60 watts. 
Every lamp of 60 watts or more but not 	 37 
exceeding 100 watts. 
And for every additional 15 watts or fraction 	 6 
thereof in excess of 100 watts in any lamp. 
SECTION III 
Rates in force from the 16th November, 1967 
(1) In respect of every premises not falling under article (2),— 
(a) when the net charge of the licensee for the supply of energy 
for the purposes of lights, or fans, or both, is less than 
twenty-five paise for each unit of energy consumed, the 
rates of electricity duty shall be as follows, namely:— 
in the case of a consumer whose consumption of energy 
during the month to which the calculation of duty relates,— 
(i) does not exceed twenty-five units—Nil, 
(ii) exceeds twenty-five units but does not exceed sixty 
units—three paise for each unit of energy consumed, 
(iii) exceals sixty units—nine paise for each unit of energy 
consumed, 
(b) in other cases—three paise for each unit of energy consumed. 
(2) In respect of every premises where the supply of energy by a 
licensee is unmetered, for— 
Paise per 
mensem. 
Every lamp of less than 30 watts 	 12 
Every lamp of 30 watts or more but less 	 19 
than 40 watts. 
Every lamp of 40 watts or more but less 	 25 
than 60 watts. 
22 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
VII of 1973.] 
(The First Schedule.) 
Paise per 
mensem. 
Every lamp of 60 watts or more but not 	 37 
exceeding 100 watts. 
And for every additional 15 watts or fraction 	 6 
thereof in excess of 100 watts in any lamp. 
Explanation.—In this Part, the expression "net charge of the licensee" 
means the net charge which remains after deducting, from the charge 
made by the licensee for the supply of energy to a consumer, any rebate 
which is allowed by such lincensee for prompt payment by the consumer. 
PART B 
For any other purpose 
SECTION I 
Rates in force from the 1st February, 1958 to the 
30th April, 1963 
(a) For every three units of energy or fraction thereof consumed— 
(i) by any undertaking which is a cottage industry or a small-
scale industry and which is not a factory under the Factories 
63 Of 1948. 	 Act, 1948, or 
(ii) by any industrial undertaking for electrolytic process or 
electric furnace subject to the condition that the inspecting 
officer appointed under sub-section (1) of section 8 is 
satisfied that the cost of the energy consumed is not less 
than 20 per cent. of the total cost of manufacture incurred 
by such industrial undertaking; 
where separate meters or sub-meters are installed for indicating 
such consumption separately—one paisa. 
(b) For every unit of energy or fraction thereof in cases not falling 
under clause (a)—one paisa. 
SEcrion II 
Rates in force from the 1st May, 1963 to the 
15th November, 1967 
(a) Except in cases falling under article (b) or article (c), where 
energy is consumed in any premises— 
(i) otherwise than in connection with any industrial or 
manufacturing process, for every unit of energy or 
fraction thereof so consumed—one paisa, 
23 
The West. Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
[West Ben. Act 
(The First .Schedule.) 
(ii) in connection with any industrial or manufacturing process, 
for every two units of energy or fraction thereof so 
consumed—three paise. 
(b) 'For every three units of energy or fraction thereof consumed for 
purposes of— 
(i) a cottage industry or a small-scale industry, by any 
undertaking not being a factory as defined in the Factories 63 of 1948, 
Act, 1948, or 
(ii) electrolysis or heating in electric furnaces, Eby any 
industrial undertaking; 
where separate meters, or sub-meters are installed for indicating the 
quantity of energy so consumed—one paisa. 
(c) For energy consumed in any premises for lights, or fans, or both, 
and for any other purpose in connection with any industrial or 
manufacturing process carried on therein, in cases where the quantity 
of energy consumed for lights or fans is not separetely indicated by the 
installation of separate meters or sub-meters or otherwise,— 
the respective rates specified under article (a) or (b), and, 
except in the case of premises occupied by, a cottage industry 
or a small-scale industry referred to in clause (i) of article (b), 
a surcharge of ten per cent. of the duty payable for the total 
quantity of energy consumed in accordance with such rates. 
SECTION III 
Rates in force from the 16th November, 1967 
(a) Except in cases falling under article (b) or article (c), where 
energy is consumed in any premises,-- 
(i) otherwise than in connection with any industrial or 
manufacturing process, for every unit of energy or fraction 
thereof so consumed—three paise, 
(ii) in connection with any industrial or manufacturing process, 
for every two units of energy or fraction thereof so 
consumed—three paise. 
(b) For every three units of energy or fraction thereof consumed for 
purposes of— 
(i) a cottage industry or a small-scale industry, by any 
undertaking not being a factory as defined in the Factories 
Act, 1948, or 
(ii) electrolysis or heating in electric furnaces, by any industrial 
undertaking; 
where separate meters or sub-meters are installed for indicating 
the quantity of energy so consumed—one paisa. 
24 
VII of I973.] 
The West Bengal Duty, on Inter-State River Valley 
Authority Electricity Act, 1973. 
(The First Schedule.) 
(c) For energy consumed in any premises for lights, or fans, or both, 
and for any other purpose in connection with any industrial or 
manufacturing process carried, on therein, in cases where the quantity 
of energy consumed for lights or fans is not separately indicated by the 
Installation of separate meters or sub-meters or otherwise,— 
the respective rates specified under article (a) or (b), and, except 
in the case of premises occupied by a cottage industry or a small-
scale industry referred to in clause (i) of article (b), a surcharge 
of ten per cent. of the duty payable for the total quantity of energy 
consumed in accordance with such rates. 
Explanation.- .--(a) The special rate of duty refen -ed to in clause (ii) 
of article (b) in Section II or Section III of this Part shall not be admissible 
unless— - 
(i) the cost of energy consumed for purposes of electrolysis 
or heating in electric furnaces is twenty per cent. or more 
of the'total cost of manufaciure by electrolysis or heating 
in electric furnaces, and 
(ii) separate books of account are maintained showing separately 
the details of the cost of energy consumed for purposes of 
electrolysis or heating in electric furnaces and the total 
cost of manufacture by electrolysis or heating in electric 
furnacCs. 
(b) An industrial undertaking claiming the benefits of the special rate 
of duty referred to in clause (ii) of article (b) in Section II or Section 
III of this Part shall make an application in writing to an officer specially 
appointed in this behalf by the State Government by notification in the 
Official Gazette and thereupon such officer shall, after giving the applicant 
an opPortunity of being heard and after making such enquiry (if any) 
as he may think fit, make an order,— 
(i) if he is satisfied that the requirements of this Act and the 
rules made thereunder have been complied with, allowing 
the application, or 
if he is not so satisfied, rejecting the application, and 
such order shall, subject to the provisions of clause (c), be 
final. 
(c) The State Government may, on application or of its own motion, 
revise any order made under clause (b). 
25 
The West Bengal Duty on Inter-State River Valley 
Authority Electricity Act, 1973. 
[West Ben. Act VII of 1973.1 
(The Second Schedule.) 
THE SECOND SCHEDULE 
(See proviso to section 3.) 
Exemptions 
(1) Any Government, save in respect of premises used for residential 
purposes; 
(2) a railway administration, save in respect of premises used for 
residential purposes; 
(3) an inter-State river valley authority, save in respect of premises 
used for residential purposes; 
(4) a local authority, save in respect of premises used for residential 
purposes; 
(5) a hospital or dispensary which is not maintained for private gain; 
(6) any consumer using in any one month not more than— 
(a) fifteen units of energy, during the period prior to the 16th 
November, 1967, or 
(b) twenty-five units of energy, during the period commencing 
with the 16th November, 1967; 
(7) any consumer, being a landlord, or other person who supplies 
energy to one-roomed or two-roomed shops or tenements in any one 
building, in respect of the energy supplied to any such shop or tenement 
in which have been used in any one month not more than— 
(a) fifteen units of energy, during the period prior to the 16th 
November, 1967, or 
(b) twenty-five units of energy, during the period commencing 
with the 16th November, 1967. 
Explanation.—(1) For the purposes of exemption (6) in the premises 
referred to in article (2) of the First Schedule every 10 watts shall be 
deemed to consume one and a half units in a month. 
(2) For the purposes of exemption (7), whether more than fifteen 
units, or, as the case may be, twenty-five units, of energy have been used 
in any one month in any shop or tenement for which there is no meter 
or sub-meter shall be determined by dividing the total number of units 
supplied during that month to such shops or tenements in the building 
by the number of such shops or tenements therein. 
26 

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