Electricity as goods for excise upheld, and tariff revision absorbing tax burden was found legally valid.

Electricity is treated as "goods" for excise purposes because of its utility, transferability, and the broad construction applied to constitutional taxing entries and the definition of excisable goods. On that basis, levy under the Central Excises & Salt Act, 1944 falls within legislative competence under Entry 84 of List I. The revised electricity tariff was also upheld because the Board could revise tariffs to absorb taxes payable under the Electricity Supply Act, 1948, and the resulting tariff increase reflecting excise burden was not open to challenge.

---

---

Issues: Whether electricity is goods and excisable under the Central Excises & Salt Act, 1944, and whether the inclusion of electricity duty in the revised tariff was legally valid.

Analysis: Electricity was held to fall within the expression "goods" for the purposes of excise legislation, having regard to its utility, transferability, and the wide meaning to be given to constitutional legislative entries and the definition of excisable goods. The levy under the excise enactment was treated as within legislative competence under Entry 84 of List I. Since the Board was empowered under the Electricity Supply Act, 1948 to revise tariff so as to absorb taxes payable, the increased tariff reflecting the excise burden was not open to challenge. The contention that electricity could not be treated as manufactured or produced goods was rejected in the light of the broad construction adopted for taxing entries.

Conclusion: The levy of duty on electricity and the consequential tariff revision were upheld, against the assessee.

---