TaxTMI 
TaxTMI 
2022 (9) TMI 306
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....cted by the assessee as per the provisions of Punjab Electricity (Duty) Act, 1958 (hereinafter referred to as '1958 Act'). Facts are being taken from ITA-33-2021. 2. Assessee is a licensee under the Electricity Act, 2003 engaged in the distribution of power in State of Haryana. Assessee filed return for the assessment year 2008-09 declaring nil income. Assessment under Section 143(3) was completed on 23.12.2010 at nil income. Commissioner Income Tax revised the same exercising power under Section 263 of the 1961 Act. Assessment order dated 30.01.2014 was passed under Section 143(3)/263 of the 1961 Act whereby certain deductions were disallowed and added back. 3. Aggrieved by the order, assessee approached CIT (Appeals). The appell....
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.... amount towards electricity duty is payable by the assessee or it is merely a collection agency discharging its duty under a statutory arrangement. 9. In the year 1958, State legislature enacted the Punjab Electricity (Duty) Act, 1958. Section 2(b), (d), 3, 4, 5, 9 and 10 read as 3 of 11 under:- "2. Definitions.- In this Act, unless the context otherwise requires,- (b) "consumer" means a person, other than a licensee, who is supplied with energy- (i) by a licensee; or (ii) by the Board; 3. Electricity duty on energy supplied to consumer or licensees by Board, etc. [(1) There shall be levied and paid to the State Government on the energy supplied by the Board to a consumer or a licensee a duty, to be called the "electricity duty....
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....s or social function, at such rate not exceeding ten rupees per unit of the energy so supplied, as the State Government may, from time to time by notification, specify in this behalf, notwithstanding anything to the contrary contained in the preceding clause; and (v) where the energy is supplied to a licensee, twenty-five per cent on the price of energy so supplied in a month. Provided that on the supply of energy which is sold by a licensee not being a licensee specified in subclause (ii) or clause (d) of section 2, - (a) to a domestic consumer or a commercial consumer the rate of electricity duty on the energy so sold shall be as notified under clause (i) or clause (ii), as the case may be (b) to any other category of consumers an....
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....on, maintenance or operation of any railway by the Government of India or a railway company operating that railway, or sold to that Government or any such railway company for consumption in the construction, maintenance or operation of any railway. (4) For the purpose of computing the electricity duty under this section the consumption shown by the meters starting after the first meter reading date falling after the commencement of this Act shall be taken into account. [Provided that for the purpose of computing the electricity duty at rate specified in section 3 of the Punjab Electricity (Duty) Amendment Act, 1963, the consumption shown by the meters commencing with the first meter reading date falling after the first day of April, 196....
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....son. 10. Power to disconnect supply for nonpayment of duty.- Where a consumer or a licensee fails to pay the electricity duty to the Board or a consumer fails to pay such duty to a licensee who is authorised to recover the duty from the consumers under section 5, the Board or the licensee may exercise the power conferred on a licensee by subsection (1) of section 24 of the Indian Electricity Act, 1910, for the recovery of any charge or sum due in respect of energy supplied by it or him." 10. From the bare reading, it is thus clear that the liability to pay electricity duty lies on the consumer. Further, the electricity duty is to be paid to the State Government. 11. Section 4 casts duty on the licensee to collect the electricity duty fr....
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....t discharging the same and pleaded mercantile system of accounting as defence. 14. The argument raised by counsel for the appellant(s) that Section 43B will be attracted merely for the reason that the appellant(s) is following mercantile system of accounting deserves to be rejected. The revenue is required to show that the duty, tax, cess or fee (in the present case electricity duty) is payable by the assessee. The reliance placed on judgment passed by Gujarat High Court in Ahmedabad Electricity Co. Ltd.'s case (supra) is misplaced. In the said case, after examining the provision of Bombay Electricity Duty Act, 1958 it was found that the clear liability of the licensee is made out. It was under those circumstances that the Court found ....