Electricity Duty SRA

CHAPTER -1
LEGISLATIVE BACKGROUND

Legislative Provisions

1.1 The State Governments are empowered to make laws for the levy of
duty and fees on the consumption or sale of Electricity under Article 246
of the Constitution of India read with entry 53 and 66 of list II (State
List) of seventh Schedule. Entries 38 and 47 of list III (concurrent list)
of the Schedule empower the Union Government also to make laws
relating to the electrical energy and for the levy of fees thereon.
1.2 Accordingly, the levy of Electricity Duty and Fees in Madhya Pradesh is
based on and regulated by the following Acts and Rules made by the
Union and State Government.
(i) The Indian Electricity Act, 1910
1

(ii) The Indian Electricity Rules, 1956.
(iii) The Electricity Supply Act, 1948
1
.
(iv) Madhya Pradesh Licensing Board (Electrical) Regulations, 1960.
(v) Madhya Pradesh Government Electrical Undertaking (Dues
Recovery) Act, 1961.
(vi) Madhya Pradesh Government Electrical Undertaking (Dues
Recovery) Rules 1961.
(vii) Madhya Pradesh Electricity Duty Act, 1949.
(viii) Madhya Pradesh Electricity Duty Rules, 1949.
(ix) Madhya Pradesh Electricity Board Rules, 1957.
(x) The Electricity Act, 2003

Electricity Duty
1.3 Electricity duty is a consumption tax as it is levied by the State
Government on the consumption of electrical energy for domestic as
well as industrial purpose within the State. The taxable event in the case
of electricity duty is not the production or generation of electrical energy
but its consumption. Thus, electricity duty is a duty on consumption of
electrical energy and is also leviable on electrical energy consumed in

1
Repealed by the Electricity Act, 2003
1
the production of electricity. [ Hon.Supreme Court decision in the case
of State of Mysore Vs. West Coast Paper Mills Ltd. September 1974
mentioned in Appendix-I]

CHAPTER-2

DEPARTMENTAL SET-UP

2.1 The Government of Madhya Pradesh (Electricity Department)
administers the provisions of the Acts and Rules mentioned in Chapter I,
through the Chief Engineer (Electricity Safety) and the Chief Electrical
Inspector. He is the head of the organisational setup and is assisted by 3
Regional offices headed by Superintendent Engineers, Electricity Safety
located at Bhopal, J abalpur and Indore. These Superintendent Engineers,
Electricity Safety are assisted by Division offices as per details given below:-
Sl. No. Name of Regional office Name of Division
1. S.E. Bhopal (i) Sehore
(ii) Gwalior
2. S.E. J abalpur (i) Chhindwara
(ii) Rewa
3. S.E. Indore (i) Khandwa
(ii) Ratlam
(iii)Ujjain
Each division is under the charge of a Divisional Engineer (Electrical Safety)
Divisions are further divided into sub-divisions under the charge of an
Assistant Divisional Engineer (Electricity Safety). The territorial jurisdiction of
a sub-division comprises of one or more revenue districts.
2.2 The main functions of the Chief Engineer (Electricity Safety) & Chief
Electrical Inspector are as under:-
(1) The Electricity Act 2003
(i) Investigation of electrical accidents and examination of causes
leading to such accidents.
(ii) Instituting prosecution against the defaulters.
(iii) Investigation into and decision on complaints and disputes
between suppliers and consumers.

(2) Indian Electricity Rules 1956
(i) Periodical inspection of installations of factories, electricity
board, licensees and consumers, high and medium voltage
installations and neonsigns.
(ii) Scrutiny and approval of the methods of construction of high
voltage installations.
(iii) Inspection and issue of permission for commissioning of new
high tension equipments.
(iv) Recovery of inspection fees.
(3) Cinematograph Regulations
(i) Scrutiny of drawings for electrical installations of cinemas.
(ii) Inspection of electrical installation of cinemas and issue of fitness
certificates to them.
(4) Licensing Board (Electrical) Regulations
(i) To conduct examination for supervisors and wiremen.
(ii) To issue/renew licenses to contractors and permits to supervisors
and wiremen.
(iii) To investigate complaints against contractors and their staff.
(5) Madhya Pradesh Electricity Duty Act 1949
(i) To see that dutiable and non-dutiable consumption and
consumptions dutiable at different rates are properly segregated
and metered.
(ii) To see that electricity duty is paid correctly and properly to
Government by scrutinizing periodical returns and by inspection
of accounts.
(iii) To recover electricity duty and interest in cases of default.

CHAPTER-3
DEFINITIONS
3.1 The definitions of some of the words and terms given in the
Electricity Act, 2003, the Indian Electricity Rules, 1956, the Madhya Pradesh
Electricity Duty Act, 1949, the Madhya Pradesh Electricity Duty Rules, 1949
and the Madhya Pradesh Government Electricity Undertakings (Dues
Recovery) Act, 1961 are reproduced below:-
(1) Consumer means any person who is supplied with electricity for his
own use by a licensee or the Government or by any other person
engaged in the business of supplying electricity to the public and
includes any person receiving the electrical energy in bulk for onward
distribution to his township or colony for consumption therein.
(2) "Distribution licensee" means licensee authorised to operate and
maintain a distribution system for supplying electricity to the consumers
in his area of supply.
(3) "Electricity trader" means a person who has been granted a licence to
undertake trading in electricity under section 12 of the Electricity
Act 2003.
(4) Prescribed means prescribed by rules made by the State Government
under the Act.
(5) Electrical Inspector means a person appointed as such by the
appropriate Government under section (1) of section 162 of the
Electricity Act 2003 and also includes the Chief Electrical Inspector.
(6) Electricity duty means duty payable under section 3 of the Madhya
Pradesh Electricity Duty Act, 1949.
(7) Form means a form prescribed by the Government under the Madhya
Pradesh Electricity Duty Rules, 1949.
(8) Government Treasury means a treasury or sub-treasury of the
Government and includes any office, branch or agency of Reserve Bank
of India or any other body acting on the authority of Government and
transacting treasury business for the Government.

(9) Board means the Madhya Pradesh State Electricity Board constituted
under the repealed laws shall be deemed to be the State Transmission
Utility.
(10) Licensee means a person who has been granted a licence under section
14 of the Electricity Act, 2003.
(11) Producer means subject to such rules as may be made by State
Government for registration of generators, a person who generates
electrical energy at a voltage exceeding hundred volts - for his own
consumption or for supplying to others and in the event of generation of
electrical energy by a hire of generator, the owner of generator shall be
deemed to be the producer.
(12) (a) "Company" means a company framed and registered under the
Companies Act 1956 and includes any body corporate under a Central,
State or Provincial Act.
(b) Director in relation to a firm, means a partner in the Firm.
(13) "Electricity System" means a system under the control of a generating
company or licensee, as the case may be having one or more
(a) Generating stations; or
(b) Transmission lines; or
(c) Electrical lines and sub stations
(14) Occupier means the owner or person in occupation of the premises
where energy is used or processed to be used.
(15) "Trading" means purchase of electricity for resale thereof and the
expression "trade" shall be construed accordingly.
(16) Dues means any sum payable to a Government electrical undertaking
on account of:-
(i) Consumption of electrical energy supplied, or
(ii) (a) any remuneration, rent or other charges for hire, inspection,
test, installation, connection, repair, maintenance or removal of
any electric motor, electric machinery, control gear, fittings,
wires or apparatus for lighting, heating, cooling, or motive power
or for any other purpose for which electricity can or may be used,

or any industrial or any agricultural machinery operated by
electricity.
(b) Price of any such goods as aforesaid taken on loan but not
returned.
(17) Debtor means a person by whom any dues are payable.
(18) Government electrical undertaking means an electrical undertaking
run or controlled either by the State Government or by the Board.
(19) Prescribed authority means any person authorised, whether by virtue
of office or otherwise by the State Government by notification, to
perform the functions of the prescribed authority under the M.P.
Government Electrical Undertaking (Dues Recovery) Act, 1961 in and
for such areas, as may be specified in the notification.

CHAPTER-4
LEVY, ASSESSMENT AND REALISATION OF
ELECTRICITY DUTY
4.1 The Madhya Pradesh Electricity Duty Act, 1949 was extended to
the whole of the state Madhya Pradesh after the states re-organisation by the
Madhya Pradesh Act No. 18 of 1956. Electrical energy is sold to the consumers
by the State Electricity Board constituted by the State Government under the
Electricity (Supply) Act, 1948 and by a licensee after obtaining a licence under
the provisions of the Electricity Act, 2003. Under section 3 of the Madhya
Pradesh Electricity Duty Act, 1949 as amended by the Madhya Pradesh Act
No. 21 of 1978, known as Madhya Pradesh Electricity Duty (Amendment) Act,
1978, duty is levied and paid to the State Government by every distributor and
every producer of electrical energy at prescribed time and in the prescribed
manner, calculated at rates specified by notification in the gazette on the units
of electrical energy sold or supplied to the consumer or consumed by himself
for his own purpose during the preceding month except in cases specified under
section 3A of the Madhya Pradesh Electricity Duty (Amendment) Act, 1978.
4.2 Electricity duty is levied and paid to the State Government in the
following cases at such rate or rates as may from time to time be fixed by the
State Government:
(a) Electricity energy sold or supplied for consumption for light, fans or any
other appliances normally connected to a lightning circuit including the
energy supplied in the premises of a factory.
(b) Electrical energy sold or supplied for the purpose of illumination on the
occasion of marriages or other social functions.
(c) Electrical energy sold or supplied for consumption in township.
(d) Electrical energy sold or supplied for consumption in premises not
covered under item (a) to (c) above.
Provided that if the electrical energy sold or supplied for consumption
for any one purpose is used either wholly or partly without the consent of the
distributor of electrical energy or producer of electricity, as the case may be,
for consumption for any other purpose for which a higher rate of duty is

chargeable, the entire energy sold or supplied shall be charged at the applicable
higher rate.
Rate of Duty
4.3 The rates of Electricity Duty prescribed by the Government under
section 3 of the Madhya Pradesh Electricity Duty Act, 1949 and applicable
with effect from 1 April 1978 and thereafter revised by the Government from
time to time are given in the Appendix-II to this manual.
Exemption
4.4 (a) The State Government may, in public interest, having regard to
the prevailing charges for the supply of energy in any area, the generating
capacity of the plant and need to promote industrial production etc., allow the
whole or in part exemption from payment of duty. [The cases in which the
State Government have made exemption from payment of duty are enumerated
in section 3-A of the Electricity Duty Act, 1949.]
(b) No Electricity Duty shall be payable in respect of electrical
energy-
(i) sold or supplied to the Government of India for consumption
by that Government:
(ii) sold or supplied to the Government of India or a railway
company for consumption in the construction, maintenance or
operation or maintenance of any railway administered by the
Government of India;
(iii) sold or supplied to the State Government for consumption by
that Government;
(iv) sold or supplied to any local authority for consumption in
public street lamps or lamps in any market places or other
places of public resort maintained by such authority;
(v) sold to or used by an agriculturist for consumption in
pumping of water and irrigation of his land or in chaff cutting
or in crushing or treating the produce of his land;
(vi) used for consumption in the maintenance or operation of
power stations and for consumption in the power house

auxiliaries but excluding the portion of the energy consumed
for generating process steam supplied from such power
station, whether directly from the boiler house or through a
passout turbine.
(c) Power to exempt-Where the State Government is of opinion that:-
(i) In order to encourage the establishment of any particular
industry or class of industries in the State; or
(ii) having regard to the particular circumstances of any
industry or class of industries; or
(iii) in order to extend facilities to such persons or class of
persons and for such purposes as the State Government may, by
notification, specify;
it is necessary or expedient to do so in public interest; it may, by notification
and subject to such conditions, if any, as it may specify in the notification:
(1) exempt from payment of duty in whole or in part.
(i) any distributor of electrical energy or producer in respect of the
electrical energy sold or supplied to such industry for the purpose
thereof;
(ii) where any producer or class of producers runs the industry, in
respect the electrical energy consumed by such producer or class
of producers for the purpose of such industry;
(iii) any distributor of electrical energy or producer in respect of
electrical energy sold to or used for consumption by person or
class of persons and for purposes specified in the notification;
(2) cancel any such notification and again subject, by a like notification, the
distributor of electrical energy or producer or class of such producers to
the payment of such duty in respect of such sale, supply or consumption
of electrical energy.
(d) Whereas, the State Government is of the opinion that having regard to
the particular circumstances of the classes of industries specified in the
Schedule below, intend to establish their own generating stations for the

purpose of consumption of electrical energy by such industries, it is
necessary and expedient in the public interest.
Now, therefore in exercise of the powers conferred by Section
3-B of the Madhya Pradesh Electricity Duty Act.1949, (No. X of 1949), the
State Government hereby exempts the industries of the aforesaid classes from
payment of electricity duty for first 5 years from the date of generation of
electrical energy by the generating stations installed by the said industries on or
after the date of publication of this notification in the Gazette subject to the
condition that the aggregate capacity of the generating station shall not be less
that 1750 KVA and more than 5000 KVA.
Provided that exemption under the notification shall not be
available-
(i) in respect of the electrical energy generated by the set installed on or
after the said date as replacement of the old set;
(ii) to those producers who will establish their own generating station on or
after the said date in addition to the generating station established before
the said date and are generating electricity; and
(iii) in respect of the subsequent generating station established after the said
date by such producer who have already a generating station on the date
of such establishment.
SCHEDULE
1. Steel industries
2. Mines
3. Textile and spinning industries
4. Rolling industries
5. Cement industries
6. Paper industries
7. Chemical industries
8. Caustic Soda industries
9. Oxygen, Nitrogen Acetelene industries
10. Engineering and automobile industries
11. Steel casting industries
12. Oil industries

(e) In exercise of the powers conferred by Section 3-B of the Madhya
Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State Government
hereby cancel this Department's Notification No.5857-F-10-2-XIII-9-, dated
6th November, 1992.
Provided that the exemption available to the producers under the said
notification who have already established generating set/power plant shall
remain available upto the expiry of the period of exemption.
Provided further that the exemption shall not be available to any
generating set/power plant installed is replaced during such exemption period.
(f) No. 2775/F-13/180/13/99 - Where as the State Government is of the
opinion that in order to encourage the manufacturing of components and allied
materials required for information technology by the industries in the State, it is
necessary and expedient so to do in the public interest:
Now, therefore, in exercise of the powers conferred by Section
3-B of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the
State Government hereby exempts from payment of electricity duty the
electrical energy sold or supplied by any distributor of electrical energy to such
new industries as specified in Annexure-I of the Madhya Pradesh Commerce
and Industry Department Notification No. F-16-8/11/D/99 dated 28.1.2000 for
a period of five years from the date of their production.
(g) No.7-86-13-2001- Whereas the State Government is of the opinion that
it is necessary to do so in the public interest:
Now, therefore, in exercise of the powers conferred by section
3-B of the Madhya Pradesh Electricity Duty Act, 1949 (X of 1949), the State
Government hereby exempts the Madhya Pradesh State Electricity Board,
Board constituted under section 5 of the Electricity (Supply) Act, 1948 (No.54
of 1948) and the generating companies established which takes over any of the
generating stations of Madhya Pradesh State Electricity Board pursuant to any
Transfer Scheme that may be issued under the Madhya Pradesh Vidhyut Sudhar
Adhiniyam, 2000 (No. 4 of 2001) from the whole of the duty payable under the
Madhya Pradesh Duty Act, 1949 in respect of electricity consumed by the
Madhya Pradesh State Electricity Board or the successor generating company,
as the case may be, as auxiliary consumption connected to the generating
stations.

(h) F-1475-XIII-2002- Whereas, the State Government is of the opinion
that, in order to encourage the establishment of the non-conventional energy
sources of power in the State, it is necessary and expedient so to do in public
interest;
Now, therefore, in exercise of the powers conferred by Section 3-B of
the Madhya Pradesh Electricity Duty Act 949 (No. X of 1949) and in
suppersession of this department Notification No. III/90 dated 6th November,
1992, the State Government hereby exempts wholly, any person, industry or
class of industries, institution or private agency producing electrical energy
sold or supplied to other or consumed by himself for his own purposes by
installation of a power generating unit on or after 7th J uly, 1994 based on non-
conventional energy sources (mini-micro hydel projects, wind energy, bio-
energy, solar energy etc.) from payment of electricity duty, for a period of
5 years from the date of generation of electrical energy by such power
generating unit.
(i) No.5691 - XIII 2004:- Whereas, the State Government is of the
opinion that having regard to the particular circumstances of the person, class
of persons, industry or class of industries who intend to establish captive power
plants in the State, it is necessary and expedient to do so in the public interest.
Now therefore, in exercise of the powers conferred by section 3-B of the
Madhya Pradesh Electricity Duty Act, 1949 (X of 1949), the State Government
hereby exempts wholly, any person, class of persons, industry or class of
industries who generate electrical energy by captive power plants as specified
in column (2) of the Schedule below, where in the substantial work starts
within one year of installation of captive power plants and the commencement
of generation of electrical energy for self consumption takes place within the
period specified in column (3) of the Schedule, from the payment of electricity
duty for a period as specified in column (4) of the said Schedule , subject to the
following conditions namely:-
1. This exemption shall be available on the generation of electrical energy
only for self consumption.

2. Any person, class of persons industry or class of industries, after
installation of the captive power plant of more than 10 KW shall obtain

a certificate of eligibility for exemption from payment of electricity duty
from the Electrical Inspector concerned and shall be entitled for
exemption only on the basis of such certificate .
3. As provided above, the exemption shall not be available to any other
captive power plants installed in the replacement of old ones .
SCHEDULE
S.No. Type of the
captive power
plant
Period of commencement
of generation of electrical
energy
Period of exemption from
payment of electricity duty
1 2 3 4
1 Gas based plant within 2 years 5 years from the date of
commencement of generation
of electrical energy by the
plant.
2 Hydel/ thermal/
other type of
power plant
within 3 years 5 years from the date of
commencement of generation
of electrical energy by the
plant.

(j) No. 3346 /13/2006 in exercise of powers conferred under section
3-b of the Madhya Pradesh Electricity Duty Act, 1949 (No. X of
1949), the State Government hereby makes the following
amendments in this Department Notification no. 5691-XIII-2004
dated 29, September, 2004 published in the Madhya Pradesh
Gazette dated 08 October 2004 namely :-
Amendment
In the said notification after condition 3, the following shall be added
namely :-
4. The captive power plant shall be eligible for exemption from
payment of electricity duty for a period of five years from the date on which
plant obtains the full load working capacity, that is,when it gets the normal
rated full load output capacity or 180 days from the date of trial run production,
whichever is earlier it shall be necessary that the generator reading shall be
noted on full working capacity of plant in presence of the officers of Madhya
Pradesh State Electricity Board or the Electrical Inspectorate.

(k) No. 4075-F-16-26-05-B-XI-XIII:-
Bhopal, the 30
th
J une 2006.
Whereas, the State Government is of the opinion that having regard to
the particular circumstances of the production of Caustic soda industries
established in the state, it is necessary and expedient to do so in the public
interest.
Now, therefore, in exercise of the powers conferred by section 3-b of
the Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State
Government hereby grants exemption of 4 per cent in payment of electricity
duty from existing 8 per cent per unit of tariff of concerned Madhya Pradesh
Vidyut Vitran Company Limited on self consumption of electrical energy
generated from captive power plant by the industries, whose expenditure on
electrical energy, is 50 per cent or more of total production cost subject to
following conditions, namely :-
(i) During beginning of every financial year, it shall be necessary to
submit a certificate of Chartered Accountant of the company in the office of the
Electrical Inspector concerned regarding expenditure of 50 per cent or more of
total production cost on electrical energy in the industry.
(ii) If there shall be any change in percentage of consumption of
electrical energy of total production cost during intervening period of financial
year, the same shall be intimated to the Electrical Inspector concerned
immediately.
(iii) For claiming above exemption during current financial year, above
certificate from Chartered Accountant shall be submitted to the Electrical
Inspector concerned immediately after publication of this notification.
4.5 Every distributor of electrical energy and every producer shall
pay the electricity duty in respect of each month before the expiry of the
following month into a Government treasury to the credit of Government under
the appropriate major head of Account and send the treasury receipt (challan)
to the Electrical Inspector within fifteen days from the date of such credit.

Recovery of duty from consumer by distributors of electrical energy
(Rule 4 of M. P. Electricity Duty Rules, 1949)
4.6 A distributor may recover from those consumers whose
consumption is dutiable, as a surcharge the whole or part of the duty payable
by him under section 3 of the Madhya Pradesh Electricity Duty Act, 1949. The
distributor shall show separately the amount of surcharge levied by him in the
bills that are sent by him to the consumers. In case of dispute regarding the
amount of surcharge to be levied, the matter shall be referred to the Electrical
Inspector for decision.
Refund of duty paid in excess
(Rule 4-A of M.P. Electricity Duty Rules, 1949)
4.7 The distributor of electrical energy or the producer shall, with the
prior approval of the Inspector, refund or make adjustments for electricity duty
collected wrongly from a consumer or paid in excess by him. The application
for refund/adjustment shall be made in the prescribed form under rule 4-A of
Madhya Pradesh Electricity Duty Rules, 1949.
Recovery of duty and Interest
(Rule 5 of M.P. Electricity Duty Rules 1949)
4.8 If the duty due is not paid within the period specified under rule 3
of the Madhya Pradesh Electricity Duty Rules, 1949 the same shall be paid
thereafter with interest thereon at the rates as may be fixed by the State
Government by notification from time to time.
Without prejudice to any other mode of recovery available to the
State Government,any duty falling due for payment and the interest accruing
thereon, if any, may be recovered in the same manner as an arrear of land
revenue under section 5 of Madhya Pradesh Electricity Duty Act, 1949.
Recovery of dues etc. if not paid (Section 6 of M. P. Government
Electrical Undertaking (Dues Recovery) Act, 1961)
4.9 (1) If the aggregate account of various dues, penalty and costs
mentioned in the notice of demand served under section 4 is not deposited with
the prescribed authority within three months of the date of such service or such
extended period as the prescribed authority may allow, the debtor shall be
deemed to be in default in respect of such amount and the same shall be

recoverable as an arrear of land revenue, anything contained in any other law or
instruments, or agreement to the contrary notwithstanding..
(2) For the purpose of such recovery, the prescribed authority may
forward to the Collector a certificate under his signature in the prescribed
form stating the amount and details of the demand and the name and
description of the debtor in default and the Collector shall on receipt of such
certificate, take action to recover from the debtor the amount of the demand
as if it is arrears of land revenue.

CHAPTER 5
LEVY ASSESSMENT AND REALISATION OF FEES
Levy of fees
5.1 Under the provision of the Indian Electricity Act, 1910 repealed by
Electricity Act, 2003 and in exercise of the powers conferred by sub-rule
2 of the rule 7 of the Indian Electricity Rule, 1956, certain fees are
leviable and payable to the Government of Madhya Pradesh which are
set forth below:-
a. Initial Inspection Fee The Indian Electricity Rules, 1956
provide that before a supplier commences supply of energy at
high or extra high voltage to any person, the Electrical Inspector
shall inspect the installation and satisfy himself about the
fulfillment of all the various provisions regarding the
installations. Where the installation is already connected to the
supply system of the supplier, every such installation shall be
periodically inspected and tested at intervals not exceeding five
years either by the Inspector or supplier, as may be directed by
the Government.
b. Inspection fee For the inspection by the Inspector, the consumer
has to pay a fee at such rate as the Government may from time to
time prescribe. The current rates of fee prescribed by the
Government in 1978 and further revised in 1987 are given in
Appendix III (a) and III (b). The fee shall be payable in advance.
In the event of failure to pay the fees on or before the date
specified in the notification, the supply of energy to the
installation of such consumer shall be liable to discontinued
under the direction of the Inspector. Such disconnection,
however, shall not be made by the supplier without giving to the
consumer seven days notice in writing of his intention
to do so.
c. Period of Inspection The categories of the unit which are to be
inspected periodically by the Electrical Inspectors and prescribed
period of interval are given in Appndix III.

d. Fee for grant or renewal of Electrical Contractors Licence No
person shall act as an electrical contractor or undertake any work
for which he is not authorised unless he holds a licence under the
M.P Licensing Board (Electrical) Regulations, 1960. The licence
granted or renewed shall expire at the end of the Calendar year
and shall be renewable thereafter after deposit of the prescribed
renewal fee. The scale of fee prescribed for the purpose is given
in rule 34 (c) of the Madhya Pradesh Licensing Board (Electrical)
Regulations, 1960.
Audit Fee
5.2 Audit fees, travelling allowance and daily allowance are payable at the
prescribed rate by the licensee, who is not a local authority, for audit of
his accounts as provided in the Electricity Act 2003. This audit of the
books of the licensee is conducted by the Electrical Inspectors
Organisation.
Fees for settlement of disputes
5.3 Wherein Inspector is called in to decide any difference or dispute
between the licensee or appointed authority and their consumers
regarding the rate of levy of electricity duty or the amount of electricity
duty realised or payment of prescribed fees, the Inspector shall decide
by whom such fee shall be payable.
Fees for examination, issue and renewal of supervisors certificates and
wiremans permits
5.4 The Chief Electrical Inspector grants certificates to the supervisors and
permits to wiremen on payment of fees after conducting such
examination as he may deem necessary. The certificates and permits are
required to be renewed at intervals of three years for which renewal fee
is payable at the prescribed rates.

Grant of duplicate certificate of competency and permit to supervisors and
certificates and permits to wiremen
5.5 A duplicate certificate of competency or permit of supervisor or
certificate or permit of wiremen shall be issued on payment of
prescribed fee and on production of proof of loss of the original
certificate.
Grant of duplicate contractors licence
5.6 A duplicate copy of a licence granted to contractor shall be issued on
payment of the prescribed fee and on production of proof of loss of the
original licence.
Refunds
5.7 In cases where the amount of electricity duty, fee, fines or penalty has
been deposited in the Government treasury in excess of the amount due
and payable, it shall not be adjusted by the depositor unless refund of
such excess amount has been authorized by the competent authority in
writing.

CHAPTER 6
OFFENCES, PENALTIES, FINES AND APPEALS
6.1 The following acts and/or omissions of any distributor of energy or any
producer or consumer shall be punishable with fine which may extend to one
thousand rupees (Section 8 of the M.P. Electricity Duty Act 1949).
(a) Failure to keep any books, accounts or records or to furnish returns
in accordance with any rule framed under section 6, or.
(b) intentional creation of obstruction to an Inspector appointed under
section 7 in the performance of his duties or the exercise of his
powers under this Act or the rules made thereunder.
Offences by companies
6.2 (1) If a person committing an offence under Electricity Act, 2003 is 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 sub-section shall render any such
person liable to any punishment, 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.
(2) Notwithstanding any thing contained in sub-section (1) where an offence
under this Act has been committed with the consent or is attributable to any
action on the part of any director or 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.
6.3 The Electricity Act, 2003 and the Indian Electricity Rules, 1956 provide
for imposition of fine and punishment for the offences mentioned below:-
1. Penalty for theft of electricity:- If a person having been convicted of
an offence of theft of electricity shall be punishable with imprisonment for a
term which may be extended to three years or with fine or with both:

Provided that in case where the load abstracted, consumed or used or attempted
abstraction or attempted consumption or attempted use-
(i) does not exceed 10 kilowatt the fine imposed on first conviction shall
not be less than three times the financial gain on account of such theft of
electricity and in the event of second or subsequent conviction the fine
imposed shall not be less than six times the financial gain on account of
such theft of electricity.
(ii) exceeds 10 kilowatt, the fine imposed on first conviction shall not be
less than three times the financial gain on account of such theft of
electricity and in the event of second or subsequent conviction, the
sentence shall be imprisonment for a term not less than six months but
which may extend to five years and with fine not less than six times the
financial gain on account of such theft of electricity.
(Section 135 of the Electricity Act, 2003)
2. Theft of electric lines and materials:- (i) If a person has committed
an offence of theft of electric lines and materials he shall be punishable with
imprisonment for a term which may extend to three years or with fine or with
both.
(ii) If a person having been convicted of an offence punishable under sub
section (i) is again guilty of an offence punishable under the sub-section,
shall be punishable for the second or subsequent offence for a term of
imprisonment which shall not be less than six months but which may
extend to five years and shall also be liable to fine which shall not be
less than ten thousand rupees.
3. Punishment for receiving stolen property:- Whoever, dishonestly
receives any stolen electric line or material knowing or having reason to
believe the same to be stolen property, shall be punishable with imprisonment

of either description for a term which may extend to three years or with fine or
imprisonment with both.
4. Penalty for interference with meters or works of licensee:- If a
person having been convicted for an offence of interference with meters or with
works of licensee, shall be punishable with imprisonment for a term which may
extend to three years, or with fine which may extend to ten thousand rupees, or
with both, and, in case of continuing offence with a daily fine which may
extend to five hundred rupees.
5. Negligently breaking or damaging works:- Whoever, negligently
breaks, injuries, throws down or damages any material connected with the
supply of electricity, shall be punishable with fine which may extend to ten
thousand rupees.
6. Penalty for intentionally injuring works:- Whoever, with intent to
cut off the supply of electricity, cuts or injuries, or attempts to cut or injure, any
electric supply line or works, shall be punishable with fine which may extend
to ten thousand rupees.
7. Penalty for extinguishing public lamps:- Whoever, maliciously
extinguishes any public lamp shall be punishable with fine which may extend
to two thousand rupees.
8. Punishment for non-compliance of directions by appropriate
commissions:- If any person has contravened any of the provisions of this
Act or the rules or regulations made thereunder, the appropriate commission
may after giving such person an opportunity of being heard in the matter, by

order in writing, direct that without prejudice to any other penalty to which he
may be liable under this Act, such person shall pay, by way of penalty, which
shall not exceed one lakh rupees for each contravention and in case of a
continuing failure with an additional penalty which may extend to six thousand
rupees for each day during which the failure continues after contravention of
the first such direction.
9. Punishment for non compliance of order or directions:-Whoever,
fails to comply with any order or direction given under this Act, or any rules or
regulations made thereunder, shall be punishable with imprisonment for a term
which may extend to three months or with fine, which may extend to one lakh
rupees, or with both. In case of continuing failure, with an additional fine
which may extend to five thousand rupees for every day during which the
failure continues after conviction of the first such offence.
10. Penalty for breach of rule 44-A:- where in contravention of rule 44-A,
any person responsible for the generation, transformation, transmission,
conversion, distribution, supply or use of energy fails to report to the
inspector and other authorities concerned, the occurence of such
accidents, such person shall be punishable with fine which may extend
to three hundred rupees.
(Rule 138-A of the Indian Electricity Rules 1956)
11. Penalty for breach of rules :- Any person other than an inspector or
any officer appointed to assist the inspector who being responsible for
the observance of any of these rules commits a breach thereof, shall be
punishable for every such breach with fine which may extend to three
hundred rupees, and in the case of continuing breach with a further fine
which may extend to fifty rupees, for every day after first day during
which the breach has continued.
(Rule 141 of the Indian Electricity Rules 1956)

12. Penalties for breach of rule 45 :- In case of erection of electrical
installations by unqualified and unauthorised persons in contravention of
rule 45 (i) of the Indian Electricity rules, 1956, the consumer or owner,
or occupier, the contractor (if any), or the person through whom the
work is being or was carried out and the person under whose immediate
supervision the work is being or was carried out, each shall be
punishable with fine which may extend to three hundred rupees.
(Rule 139 of the Indian Electricity Rule, 1956)
13. Penalty for breach of rule 82- Erection without notice of a new
building or structure (Permanent or temporary) or alteration of an
existing building or structure subsequent to erection of overhead line
will make the person making/proposing and the contractor executing the
erection/alternation, liable to pay a fine which may extend to three
hundred rupees.
(Rule 140 of the Indian Electricity Rule 1956)
6.4 Penalties not to affect other liabilities:- The penalties imposed
under this Act are in addition to and not in derogation of any liability.
6.5 Penalties where works belong to Government:- The provisions
of this Act shall, so far as they are applicable, be deemed to apply also
when the acts made punishable thereunder are committed in the case of
electricity supplied by or of works belonging to the appropriate
Government.
6.6 Recovery of Penalty payable under this Act:- Any penalty payable by
a person under this Act, if not paid, may be recovered as arrears of land
revenue.

Appeals
6.7 - An appeal against an order served under sub-rule (4) of rule 5 of Indian
Electricity Rules, 1956 shall lie,
(a) if the order is served by an officer appointed to assist an inspector;
(b) if an order is served by an inspector, to the Central Government or the
State Government, as the case may be;
(2) in the case of an order of an inspector on an appeal preferred to him
under clause (a) of sub rule (1) above, a further appeal shall lie to the
Central Government or the State Government as the case may be;
(3) every appeal shall be in writing, shall be accompanied by a copy of the
order appealed against and shall be presented within three months of the
date on which such order has been served or delivered or is deemed to
have been served or delivered as the case may be.

CHAPTER - 7
RECORDS AND RETURNS
Books of Accounts
7.1 The State Government has prescribed that the books of accounts kept by
the licensee, appointed authority and other person at local offices, under
section 6 of the M.P. Electricity Duty act, 1949, shall contain the
following particulars.
(a) Details including meter readings to show the amount of energy
generated, purchased, distributed and consumed.
(b) Name and service connection number of the person consuming or
supplying energy.
(c) Brief description of the premises where the energy is consumed or
supplied and the purpose for which energy is consumed.
(d) Date and month of recording meter reading and the units supplied or
consumed, separately for each category.
(e) Rates of supply for each category.
(f) Details of the energy generated, supplied or consumed in each
category which is exempt from duty under the M.P. Electricity Duty
Act, 1949.
(g) Amount of duty payable and the amount deposited and its
particulars.
(h) Date of depositing the duty and the number of the treasury challans
through which it has been deposited.
(i) Amount of duty realised from the consumers and its particulars.
Particulars to be kept by the Licensee, the Board and other persons
7.2 (i) Particulars of the amount of interest payable for not
depositing the amount of electricity duty in time.
(ii) Date of depositing the amount of interest and the number of
treasury challans through which it has been deposited.
(i) Particulars of the amount deposited and penalty imposed for
evading or attempting to evade payment of duty.

(ii) Date and number of treasury challans through which the
amount of penalty imposed has been deposited.
Submission of Returns
7.3 Every distributor of electrical energy and every producer shall submit to
the Electrical Inspector
(j) alongwith the treasury receipt required under rule 3 of the M.P.
Electricity Duty Rules, 1949, a return for each month in Form G.
(ii) at the end of the financial year, a return in Form H J and K not
later than 15
th
day of the second month following the last day of the
said financial year.
7.4 (a) Record to be maintained by the licensees In order to comply with
the aforesaid provisions the following records are required to be
maintained by the licensee ;_
(i) Meter reading book
(ii) Bill books
(iii) Ledger
(iv) Agreement file
(v) Electricity Duty file
(vi) Summary of consumers ledger
(vii) Application for first connection
(viii) Duty register and challans showing deposit of duty
(b) Records to be maintained by units of the M.P. State Electricity Board
Assessment record
(i) Meter reading book
(ii) Bill list cum bill summary or bill book
(iii) Consumers ledger
Realisation record
(i) Daily credit list and balancing statement
(ii) Notice list
(iii) Unpaid outstanding list

Misc. records
(i) Cash Book
(ii) Summary of duty collected
(iii) List of consumers exempted from electricity duty
(iv) Remittance record
(v) Disconnection ledger
(vi) Paid duty register
Records of Chief Electrical Inspector
7.5 Some of the important records and returns relating to assessment and
collection of electricity duty and fees that are maintained in the office of
the Chief Electrical Inspector and his subordinate offices are mentioned
below:-
(a) Records maintained in the subordinate offices
(i) Whereas the records relating to electricity duty are maintained by
the suppliers, the records relating to fees are maintained in the
subordinate offices. The prescribed fees are deposited by challans
by the parties concerned and a copy of each of the challan is sent to
the office of the Electrical Inspector concerned, who maintains a
consolidated account of all such receipts accruing in his jurisdiction.
For this purpose, he maintains the following records:-
1. Consolidated Revenue Register
2. Medium and High Pressure installation register
3. Cinema register
4. General register of Inspection
5. Periodical Inspection register
6. Register of Neonsigns and X-rays
7. Register of accidents
8. Electricity duty register
9. Register of recovery of outstanding electricity duty
10. Register for refund of electricity duty
11. Copies of monthly treasury challans received from licensees, etc.

12. Annual returns in prescribed form received from licensees
13. Half yearly returns received from licensees
(ii) The Divisional Electrical Inspectors and Electrical Inspectors
submit the following returns to the Chief Electrical Inspector :-
(1) Monthly statement of electricity duty collected by the distributing
centres of the divisions of the Madhya Pradesh State Electricity
Board (M.P.S.E.B).
(2) Monthly statement of inspections and results thereof.
(3) Monthly statement of revenue (electricity duty).
(iii) Half yearly and Annual returns- While conducting the audit
of the offices of Divisional Electrical Inspectors, the accounts of
the energy generated and consumed during production of energy,
dutiable consumption of energy and electricity duty payable/paid
,should be checked with reference to the Half yearly/Annual
returns.
(iv) Records maintained in the office of the Chief Electrical
Inspector :- Records pertaining the fees for the examination and
issue of supervisors certificates and wiremans permits and fees
for grant/renewal of licences of electrical contractors, are
maintined in the office of the Chief Electrical Inspector. The
record is in the form of division-wise registers which are posted
from treasury challans.
(v) Demand and collection register of audit fees, traveling
allowance and daily allowance The accounts in respect of
audit fee, travelling allowance and daily allowance (chargeable
from licensee in terms of the Electricity Act 2003 are maintained
by the Audit Officers attached to the Chief Electrical Inspector in
a register called the Demand and collection register of audit Fees,
traveling allowance and daily allowance.
(vi) Revenue records and reconciliation The following records
are maintained in the office of the Chief Electrical Inspector for
consolidation and reconciliation of entire revenue receipt (viz.
Fees, Electricity duty, interest, fines and penalties) of the State:-

(1) Consolidated revenue register This register is posted from the
revenue statements received from Divisional offices.
(2) Register of posting of treasury challans It is posted from
departmental copies of treasury challans received from the
treasury officers.
(vii) Important revenue records in the office of the Divisional
Electrical Inspectors The Divisional Electrical Inspectors
maintain the following revenue records :-
(1) Register of challans of monthly collections of electricity duty.
(2) Register of monthly demands of arrears of electricity duty.
(3) Register of monthly demands of interest of electricity duty.
(4) Register of monthly refunds/adjustments of electricity duty.
(5) Register of local inspection for check of demand and collection
of electricity duty.

CHAPTER 8
AUDIT CHECKS
8.1 In the audit of receipt and refunds of electricity duty and fees, the accounts
and records maintained in the following offices are checked :-
(a) Licensees and Appointed Authorities
(b) Divisional offices in the charge of the Divisional Electrical Inspectors
(c) Sub-divisions in the charge of Assistant Electrical Inspectors
(d) Chief Electrical Inspector
8.2 The initial account records relating to the levy, assessment and payment
of electricity duty are maintained in the offices of the Licensees and the
Appointed Authorities and those relating to fees in the offices of the
Electrical Inspectors and Chief Electrical Inspector.
Licensees and Appointed Authorities
8.3 The following records should be examined during audit in the offices of
the Licensees and Appointed Authorities.
(i) Meter reading Book-Whether the units of energy consumed as shown
in the meter reading book have correctly been worked out with reference
to the previous readings.
(ii) Consumers ledger (Bill List )
(a) Whether units shown in the meter reading book have correctly been
noted in it.
(b) Whether electricity duty has been correctly charged on the basis of the
various scales of charges for energy consumed.
(c) In the case of bulk supply, whether the rates are in conformity with the
agreement.
(d) Whether exemptions from electricity duty have been correctly allowed.
(e) Whether energy charges have been levied at the rates approved by the
Government.
(f) Whether the monthly units of electricity generated and supplied as
shown in the records of the electricity supply companies or undertakings

tally with those intimated to the Divisional Officers in the returns
furnished.
Checking of realisation
8.4 (a) Whether the amounts shown as realised in the Daily credit list
agree with the amounts billed for.
(b) Whether total daily receipts as per daily credit list agree with the cash
statement.
(c) Whether the totals of monthly collections tally with the amount as
shown in the summary of duty collected.
(d) Whether the total amount shown in the paid duty register has been
remitted into the treasury.
(e) Whether the figures of collection of duty agree with the figures
intimated to the Divisional offices in the returns furnished.
(f) Whether the duty was deposited in time, if not whether interest was
charged and recovered within the prescribed time.
(g) Electricity duty has to be paid in respect of supply of energy to
autonomous bodies, cooperative societies and similar other bodies being non-
government bodies. It should be seen whether electricity duty has been paid on
these supplies.
(h) If the rates charged' include any surcharge on the rate of energy
charged, it should be seen whether for the purposes of levy of electricity duty,
the surcharge has also been included in the rate charged.
(i) whether electricity duty has been paid at normal rates applicable in
respect of consumers to whom the energy is supplied free of charge or at
concessional rates by a licensees of Madhya Pradesh State Electricity Board.
(j) In the case of Defence personnel, whether meters in the residential
premises stand in the name of individual consumers and supply of energy is
free to them. It should be seen whether the electricity duty at normal rates was
paid in respect of such consumers.
(k) Whether meters have been installed for generation and consumption of
energy in auxiliaries. In cases where meter for generating energy have not been
installed it should be seen whether the percentage of energy shown as

consumed in the process of generation was not in excess of the norm fixed by
the Madhya Pradesh State Electricity Board to its units.
Examination of records in the office of the Divisional Electrical Inspectors
8.5 (i) Whether the treasury challans received from licensee etc. in
support of the electricity duty or fee have been correctly posted.
(ii) Whether inspections of electricity installations by the divisional staff
have been carried out only after payment of prescribed fees. This should be
checked with reference to subsidiary registers e.g. Permanent Installation
Register, Cinema Register, Temporary Installation Register etc. Whether fees
for the initial or periodical inspections were charged at the prescribed rates.
(iii) Whether notices for periodical inspections were issued in time in each
case, where it was due.
(iv) Whether electricity duty has been realised as and when due from persons
consuming energy from their own source of generation.
(v) Whether the refunds allowed were sanctioned by the competent
authority and that the amount refunded was actually initially deposited by the
person concerned. This should be seen with reference to original treasury
challans.
(vi) Whether the amount of electricity duty reported by licensees to have
been deposited by them, agrees with he amount received in the Divisional
offices. This should be checked with reference to the periodical returns.
Examination of records in the office of the Chief Electrical Inspector
8.6 (i) Whether the fees for examination, issue and renewal of supervision
certificates and wiremans permit grant/renewal of electrical contractors licence
etc. have been charged correctly and accounted for.
(ii) Whether the treasury challans received in respect of fees have been posted
correctly in the prescribed registers.
(iii) Refunds of electricity duty are allowed by the Chief Electrical Inspector.
The refund cases should be examined to see whether refunds have been
properly sanctioned.
8.7 A demand and collection register of audit fee, traveling allowance and daily
allowance is maintained by the Audit Office attached to the Chief Electrical

Inspector. It should be seen whether audit fee etc. are being charged according
to the prescribed rates and the same are being properly accounted for.

APPENDIX I
(Reference .. Para 1.3)
SUPREME COURT DECISION
Mysore Electricity Act
VI/III-B/48-State of Mysore
Vs.
West Coast Paper Mills Ltd.
Date of J udgment 24.09.1974
Mysore Electricity (Taxation Consumption) Act. 1959 (Mysore Act 14 of
1950) Section 2 clause (i) whether electricity tax is chargeable on the
quantity of electrical energy lost in the course of transmission. Whether the
respondent is liable to pay the tax on the quantity used by it for generating
further electricity.
Held that tax is payable in respect of energy consumed for generating further
electricity but no tax is payable in respect of energy lost during transmission.
The one question with which we are concerned in this appeal is whether
electricity tax is payable in respect of the electrical energy which is lost in
transmission as a result of transmission loss or transformer loss. So far as this
question is concerned, we are of the view that no tax is payable on the
electricity so lost. The entire scheme of the Act is to tax the consumption of
electrical energy. Where some energy is not consumed but lost before it
reaches the point of consumption, the question of levy of tax on consumption
of such energy would not in very nature of things arise. The place of
consumption of electrical energy is normally at some distance from the place
where electrical energy is generated. Electrical energy has consequently to be
transmitted through metal conductors to the place where it is consumed. Such
transmission admittedly entails loss of some electrical energy and what is lost
can plainly be not available for consumption and as such would not be
consumed.
We are, however, unable to agree with the High Court that no electricity tax is
payable by the respondent company in respect of the electrical energy used by
it for generating further electrical energy. Electrical energy can be consumed

for a variety of purposes. The fact that such energy has been used not for
manufacturing some other article but for generating further electricity would
not go to show that such energy has not been consumed. What we are actually
concerned with under the Act is the consumption of electrical energy. The use
of electrical energy would none the less be consumption of such energy even
though it has been consumed in operating the operations for generating further
electrical energy. The purpose for which the energy has been consumed would
not make any material difference for the purpose of the levy of tax under the
Act.
We, therefore, partially accept the appeal and hold that electricity tax under the
Act is payable in respect of electrical energy consumed for generating further
electricity. No such tax, is, however, payable in respect of electrical energy lost
as a result of transmission loss and transformer loss. The judgment of the High
Court is modified accordingly.

APPENDIX II (A)
(Table)
(Reference Para 4.3)
RATES OF DUTY

(1)
Electrical Energy sold or supplied for
Consumption in premises used -

(a) for business, trade or commercial
purpose or for purposes of
professional pursuits other than for
flour mills
8 paise per unit of energy upto 50 Units
of energy sold or supplied in a month
10 paise per unit for each additional unit
sold or supplied in a month in excess of
50 units but not in excess of 100 units of
energy.
in a month in excess of 100 units of
energy.
(b) for flour mills. 2 paise per unit of energy
(2) Electrical energy sold or supplied for
consumption in premises of a factory
excluding energy supplied for
consumption for domestic or non-
factory purposes where the connected
load -

(a) does not exceed 100 HP 1.5 paise per unit of energy.
(b) exceeds 100 HP 3 paise per unit of energy
purpose of illumination on the
occasion of marriages or other social
functions.
65 paise per unit of energy upto 50 units
of energy sold or supplied on any one
occasion. Re. 1 per unit for each
additional unit sold or supplied on any
one occasion in excess of 50 units but
not in excess of 100 units of energy
Rs.2.50 per unit for each additional unit
sold or supplied on any one occasion in
excess of 100 units of energy
consumption -

(a) a township or colony attached to a
factory, mine or institution; or
10 paise per unit of energy
(b) a premises getting supply at high
voltage or extra high voltage but not
covered under items (1) and (2)
above
-do-

consumption in premises and for
purpose not covered under items (1)
to (4) above
6.5 paise per unit of energy upto 50
units of energy sold or supplied in a
month.
50 units but not in excess of 150 units of
energy.
150 units of energy
Provided that if the electrical energy sold or supplied for one purpose is used
either wholly or party without the consent of the distributor of electrical energy
or producer of electricity, as the case may be, for consumption for any other
purpose for which a higher rate of duty is chargeable, the entire energy sold or
supplied shall be charged at the highest rate applicable.
Explanation:- For the purpose of section 3 :
(a) month means such period as may be prescribed and till such
period is prescribed, the billing month.
(b) Premises used for business, trade, commercial purposes or
professional pursuits shall include the premises used
(1) for the purposes of mines to which Mines Act, 1952 (No. 35 of
1952) applies.
(2) For the purposes of industries which do not require raw materials
for carrying on the industries but which are carried on for
rendering services such as flour mill, repairs workshop and the
like and are not registered as factories under the Factories Act,
1948 (no. 63 of 1948).
(c) 'Factory means a factory registered under the Factories Act,
1948 (No. 63 of 1948) and includes premises used for the
purposes of Industries which require raw materials for carrying
on the manufacturing process and prepare finished goods for sale.

APPENDIX II B (1)
Extra Ordinary Gazette Notification No.2070
Madhya Pradesh Electricity Duty (Amendment and Validation)
Ordinance 1984 (effective from 1.10.1984)
(d) in the table of rates or duty for item (5) the following items shall be
substituted namely:
(5) Electrical energy sold or supplied
for consumption in a mine
in bulk by a producer or
distributor of electrical energy, to
another distributor of electrical
energy excluding electrical
energy supplied for his township
or colony
for consumption
in premises and for purpose not
covered under
items (1) to (6) above
6.5 paise per of energy upto 50 units of
energy sold or supplied in a month
7 paise per unit of or each additional
unit sold or supplied in a month in
excess of 50 units but not in excess of
150 units of energy
12 paise per unit for each additional
unit sold or supplied in a month in
excess of 150 units of energy
(b) In the explanation
(i) For clause (b) the following clause shall be substituted namely
(b) Premises used for business, trade, commercial purposes or for purposes of
professional persuits shall include the premises used for the purposes of
industries which do not require raw materials for carrying on the industries
but which are carried on for rendering services such as flour mills, repair
workshop and the like and are not registered in factories under the Factory
Act, 1948 (No. 63 of 1948).
(ii) For clause (c) the following clause and Note shall be substituted and shall
be deemed to have been substituted with effect from 1
st
October 1978
namely.
(c) Factory means a factory registered under the Factory Act, 1948 (No. 63 of
1948)

Note For the purpose of this section the date of issue of the Factory Licence or
the date of commencement of production as certified by the Director of
Industries or his authorised representative, whichever is later shall be
deemed to be the date from which Factory is registered.
(iii) after clause (c) the following clause shall be inserted, namely -
(d) Mine means a mine to which the Mines Act, 1952 (No. 35 of 1952)
applies and includes the premises or machinery situated in or adjacent to a
mine and used for crushing, processing, treating or transporting ore

APPENDIX II B (2)
MADHYA PRADESH ACT
No. 15 of 1985
THE MADHYA PRADESH ELECTRICITY DUTY (AMENDMENT)
ACT, 1985
[Received the assent of the Governor on the 2
nd
August, 1985 assent first
published in the Madhya Pradesh Gazette (Extraordinary) dated the 3
rd

August 1985.]
An Act further to amend the Madhya Pradesh Electricity Duty Act, 1949.
Be it enacted by the Madhya Pradesh Legislature in the Thirty sixth Year of the
Republic of India as follows :-
1. (1) This Act may be called the Madhya Pradesh Electricity Duty
(Amendment) Act, 1985.
(2) It shall be deemed to have come into force on the 1
st
day of August,
1985.
2. In Section 3 of the Madhya Pradesh Electricity Duty Act, 1949 (No. 10
of 1949) (i) for the existing Table of Rates of Duty, the following Table shall
be substituted namely :-

TABLE
Rates of Duty
Consumption in premises used -

(a) for business, trade or commercial
purposes or for purposes of professional
persuits other than for flour mills.
9 paise per unit of energy upto
50 units of energy sold or
supplied in a month
11 paise per unit for each
additional unit sold or supplied in
a month in excess of 50 units but
not in excess of 100 units of
energy; and
additional unit sold or supplied in
a month in excess of 100 units of
energy.
(b) for flour mills 3 paise per unit of energy
consumption in premises of a factory
excluding energy supplied for consumption
for domestic or non factory purposes
where the connected load -

(a) does not excess 100 HP 3 paise per unit of energy
(b) exceeds 100 HP 4 paise per unit of energy
supplied on any one occasion;
Re. 1 per unit for each additional
unit sold or supplied on any one
occasion in excess of 50 units but
not in excess of 100 units of
energy and
purposes of illumination on the occasion of
marriages or other social functions
Rs. 2.50 per unit for each
additional unit sold or supplied
on any one occasion in excess of
100 units of energy

consumption in-
(a) a township or colony attached to a factory,
mine, or institution; or

(b) a premises getting supply at high voltage
or extra high voltage but not covered under
items (1) and (2) above.

consumption in a mine
(6) Electrical energy sold or supplied in bulk by a
producer or distributor of electrical energy to
another distributor of electrical energy
excluding electrical energy supplied for his
township or colony
consumption in premises and for purposes not
covered under items (1) to (6) above.
supplied in a month
in a month in excess of 50 units
but not in excess of 150 units of
energy; and
in a month in excess of 150
units of energy
(ii) In clause (d) of the Explanation for the word ore the word mineral shall
be substituted.

APPENDIX II B (3)
Bhopal, the 30
th
June 1986
No. 3242-F-1-13-XIII-86 Whereas, the State Government is of opinion that
having regard to the particular circumstances of such industries and in order to
extend facilities to such classes of consumers for purposes of running their
undertakings as are specified in the Schedule below it is necessary and
expedient so to do in public interest.
Now, therefore, in exercise of the power conferred by Section 3-B of the
Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), the State
Government hereby exempts from payment of duty in excess of 3 paise per unit
of electrical energy sold or supplied by
(i) any distributor of electrical energy; or
(ii) producer in respect of the electrical energy.
to the industries and other classes of consumers as are specified in the schedule
below:
SCHEDULE
1. Flour Mill (Atta Chakki), Oil expeller, Thrasher and similar other
machinery used for agricultural processing.
2. Small Scale Industries registered with the State Industries Department
3. This notification shall come into force with effect from 1st J uly, 1986.
4. The Notification No.F-1-6-XIII-85, dated the 1st August 1985 which
relates to the industries and other classes of consumers covered by this
notification and also certain other categories of industries and classes of
consumers shall stand rescinded from the 1st J uly, 1986.

APPENDIX II B (4)
MADHYA PRADESH ACT
No. 21 of 1986
THE MADHYA PRADESH ELECTRICITY (AMENDMENT) ACT 1986
Received the assent of the Governor of the 30
th
J une 1986 assent first published
in the Madhya Pradesh Gazette (Extraordinary) dated the 30
th
J une 1986]
Be it enacted by the Madhya Pradesh Legislature in the Thirty seventh Year of
the Republic of India as follows :-
1. (1) This Act may be called the Madhya Pradesh Electricity Duty
(Amendment) Act, 1986.
(2) It shall come into force on such date as the State Government may
by notification appoint.
2. For Section 3 of the Madhya Pradesh Electricity Duty Act, 1949 (No. 10
of 1949), the following section shall be substituted, namely:-
3. (1) Subject to the exceptions specified in Section 3-A every distributor
of electrical energy and every producer shall pay every month to the State
Government at the prescribed time and in the prescribed manner a duty
calculated at the rates specified in the table below on the units of electrical
energy sold or supplied to a consumer or consumed by himself for his own
purposes or for purposes of his township or colony , during the preceding
month :-

TABLE
RATES OF DUTY
PART A
(1) Electrical energy sold or supplied in bulk by a
producer or distributor of electrical energy to
another distributor of electrical energy
excluding electrical energy supplied for his
township or colony.
2 paise per unit of energy.
PART-B
1. Electrical energy sold or supplied for
consumption for purpose; as shown below:-

(1) For domestic purposes receiving
electricity at low tension tariff.
supplied in a month.
additional unit sold or
supplied in a month in excess
of 200 units of energy.
2. For Non-Domestic and Commercial purposes
including X-ray plants receiving electricity at
low tension tariff.
upto 100 units of energy sold
or supplied in a month.
additional unit sold or
of 100 units of energy.
3. For water and sewage pumping installation of
Municipalities, Corporations and other local
bodies used for public utility water scheme.
3 paise per unit of energy;
4. For Mines other than captive mines of a
Cement Industry.

5. For cement Industry including its captive
mines.
6. For Mini Steel Plant Calcium Carbide Plants
and for consumers receiving energy under
electro chemicals tariff.
7. For other industries not covered under above
categories.
8. For non-industrial purposes not included
under any of the above categories.
Provided that if the electrical energy sold or supplied for consumption for any
one purpose is used either wholly or partly, without the consent of the
distributor of electrical energy or producer of electricity, as the case may be,
chargeable the entire energy sold or supplied shall be charged at the highest
rate applicable.
Explanation For the purpose of this section
(a) month means such period as may be prescribed and till such period is
prescribed the billing month.
(b) 'mine' means a mine to which the Mines Act, 1952 (No.35 of 1952) applies
and includes the premises or machinery situated in or adjecent to a mine and
used for crushing processing, treating or transporting the mineral.
(2) Item (1), (2), (3) and (6) of Part-B of the Table under sub-section (1)
shall respectively cover the same categories of consumption as are adopted by
the Madhya Pradesh Electricity Board for purpose of billing of electricity sold
or supplied by it.
(3) If any dispute arises in respect of any matter falling under sub-section
(2) , the decision of the State Government thereon shall be final.

APPENDIX II B (5)
Bhopal the 14
th
January 1988
NO.177-F-1-1 XIII-88-Whereas,the State Government is of opinion that having
regard to the particular circumstances of such industries and in order to extend
facilities to such classes of consumers for purposes of running their
expedient so to do in public interest;
Now, therefore in exercise of the powers conferred by section 3-B of the
Madhya Pradesh Electricity Duty Act.1949 [No. X of 1949], and in
supersession of this Department notification No,3242-F-1-13-XIII-85, dated
the 30
th
J une 1986,the State Government hereby exempts from payment of duty
on the electrical energy sold or supplied by
(i) Any distributor of electrical energy; or
(ii) Producer;
to the industries and other classes of consumers and to the extent as are
specified in the schedule:-

SCHEDULE
(i) Water and Sewage pumping installations of
Municipalities Corporations and other local bodies
used for public utility water schemes
Full exemption.

(ii) Flour Mills (Atta Chakki), Oil Expeller and similar
other machinery used for agricultural processing.
Duty in excess of 3
paise per unit
(iii) Textile Mills other than Spinning mills. Duty in excess of 5
paise per unit
2. This Notification shall apply to the electrical energy sold, supplied or
consumed during the month of J anuary, 1988 and onwards.

APPENDIX II-B (6)
Bhopal the 30th July 1988
No.3111-F-10-5-XIII-88-Whereas, the Sate Government is of opinion that
extend facilities to such classes of consumers for purposes of running their
expedient so to do in public interest;
Now, therefore in exercise of the powers conferred by Section 3-B of the
Madhya Pradesh Electricity Duty Act, 1949 (No. X of 1949), and in
supersession of this Department Notification No,F-1-6-XIII-85, dated the 1st
August 1985, and No.177-F-1-1-XIII-88 dated the 14th J anuary 1988, the State
Government hereby exempts from payment of duty on the Electrical Energy
sold or supplied by -
(j) Any distributor of electrical energy; or
(ii) Producer;
specified in the schedule:-
SCHEDULE
Municipalities, Corporations and other local bodies
used for public utility water schemes
Full exemption.

(ii) Power-looms registered with the Textile
Commissioner or the Director, Handlooms
Duty in excess of 3 paise
per unit
(i) any distributor of electrical energy or
(ii) Producer;
specified in the schedule;-

SCHEDULE
Municipalities, Corporations and other local bodies used
for public utility water schemes
Full Exemption.
(ii) Power-looms registered with the Textile Commissioner or
the Directors, Handlooms
Duty in excess of
3 paise per unit
(iii) Flour Mills (Atta Chakki), Oil Expeller and similar other
machinery used for agricultural processing.
Duty in excess of
4 paise per unit

(iv) Industries getting electricity supply at High voltage whose
contract demand does not exceed 112 KW/125 KVA
Duty in excess of 4
paise per unit
(v) Textile Mills other than Spinning mills. Duty in excess of 9
paise per unit
2. This Notification shall apply to the electrical energy sold, supplied or
consumed during the month of December, 1988 and onward.

APPENDIX II B (7)
MADHYA PRADESH ACT
No, 4 of 1989
THE MADHYA PRADESH ELECTRICITY DUTY (AMENDEMENT)
ACT, 1989
[Received the assent of the Governor on the 13 April 1989, assent first
Published in the "Madhya Pradesh Gazette (Extraordinary)" dated the 17the
April, 1989).
Be it enacted by the Madhya Pradesh Legislature in the fortieth year of
the Republic of India as follows:-
1. This Act may be called the Madhya Pradesh Electricity Duty
(Amendment) Act, 1989
2. In section 3 of the Madhya Pradesh Electricity Duty Act,1949 (No.10 of
1949), (hereinafter referred to as the Principal Act), in sub-section (1) under the
Table of Rates of Duty for items (1) to (6) of Part-B, the following items shall
be substituted, namely:-
(1) For Domestic purposes receiving electricity
at low tension tariff.
supplied in a month;
12 paise per unit of each
additional units sold or
of 100 units of energy upto
200 units.
24 paise per units for each
additional unit of energy sold
or supplied in a month in
excess of 200 units.

2. For Non-Domestic and Commercial
purposes including X-ray plants receiving
electricity at low tension tariff.
upto 200 units of energy sold
or supplied in a month.
additional unit of energy sold
or supplied in a month in
excess of 200 units.
3. For Mines other than captive mines of a
Cement Industry.
4. For Cement Industry including its captive
mines.
5. For other industries not covered under above
categories -

(a) Industries receiving electricity at low
tension tariff;
(b)Other Industries 12 paise per unit of energy.
6. For non-industrial purposes not included
under any of the above categories.
24 paise per unit of energy"
w.e.f. 18.3.1997
3. Notwithstanding anything contained in Section 3 of Principal Act, the
new rates of electricity duly introduced by this Act be applicable to the
electricity sold, supplied or consumed during the month of April, 1989 and
onwards,
4. The Madhya Pradesh Electricity Duty (Third Amendment) Ordinance,
1988 (No. 9 of 1988) is hereby repealed.

APPENDIX II-B (8)
MADHYA PRADESH ACT
No.15 of 1995
THE MADHYA PRADESH ELECTRICITY DUTY (AMENDMENT)
ACT, 1995
[Received the assent the Governor on the 10th May, 1995; assent first
published in the
"Madhya Pradesh Gazette (Extra ordinary)" dated the 15 May 1995]
An Act further to amend the Madhya Pradesh Electricity duty Act, 1949.
Be it enacted by the M.P. Legislature in the Forty Sixth year of the republic of
Indian as follows:-
1. (1) This act may be called the M.P. Electricity duty (Amendment) Act,
1995.
(2) It shall be deemed to have come in to force on the 1st day of April
1995.
2. In section 3 of the M.P. Electricity duty Act, 1949 (No.10 of 1949)
(hereinafter referred to as the Principal Act) :-
(i) in sub-section (1), under the table of rates of duty, for part-, the
following part shall be substitute namely:-

PART B
Electricity energy sold, supplied or consumed for the purposes as shown
below:-
S.No. Purpose Rate of duty as percentage of the
electricity tariff per Unit
1 2 3
1. On low tension tariff;
For domestic consumption Per month
(i) Up to 100 units 14
(ii) In excess of 100 units upto 200 units 15
(iii) in ecess of 200 units 23
2. On low tension tariff Per month
For non-domestic Consumption;
(i) Upto 200 units 11
(ii) in excess of 200 units 11.5
3. Mines (other than captive mines of
cement industry)
40
4. Cement Industries (including its captive
mines)
10.5
5. For other Industries not covered above
categories -

(a) Industries receiving electricity at low
tension Tariff

(i) Upon 25 HP 3
(ii) In excess of 25 HP upto 75 HP 4
(iii) In excess of 75 HP upto 100 HP 3.5
(iv) in excess of 100 HP upto 150 HP 3
(b) Other industries 80
(6) For Non-Industrial purpose not included
under any of the above categories
24
Charged @15 w.e.f 18.09.97

7. For consumers who generate energy for their own consumption for the purpose
included under any of the above categories, the rate of duty shall be calculated as if the
electrical energy is supplied by the M.P. Electricity Board.

Provided that if the electrical energy sold or supplied for consumption
for any purpose is used either wholly or partly, without the consent of the
distributors of electrical energy or producer of electricity, as the case may be
chargeable, the entire energy sold or supplied shall be charged at the highest
rate applicable.
Explanation:- for the purpose of this section :-
(a) Month means such period as may be prescribed and till such period is
prescribed, the billing month;
(b) "Mine" means a mine to which the Mines Act, 1952 (No.35 of 1952)
applies and includes the premises or machinery suitable in or adjacent to a
mine and used for crushing, processing, testing or transporting the mineral.
(c) The Electricity Duty shall be calculated on the basis of actual percentage of
tariff in a month and fraction of 50 paise and above will be rounded off to the
next higher rupees and the fraction of less than 50 paise will be ignored.
(d) Tariff means the rate of energy per unit made applicable from time to
time by the M.P. Electricity Board on the various categories of consumption.
(e) For the consumption of Power Plant Auxiliaries, the rates of electricity
duty shall be such as shown against item (5) (b) of the table.
(ii) sub-section (2) shall be omitted.

APPENDIX II-B-(9)
Bhopal, the 17
th
May 1995
No. 3269-F-10-6-XIII-95-whereas, the State Government is of opinion that
extent facilities to such classes for purposes of running their undertaking as are
specified in the Schedule below it necessary and expedient so to do in public
interest:
Now, therefore, in exercise of the powers conferred by Section 3-B of the M.P.
Electricity Duty Act, 1949 (No. X of 1949) and in supersession of this
Department Notification No. 4994-F-10-9-XIII-88 dated 15
th
December, 1988,
the State Government exempts hereby from payment of duty on the Electrical
Energy sold or supplied by-
(i) any distributors of electrical energy; or
(ii) producer
To the industries and other classes of consumers and to the extent as are
specified in the Schedule:-
SCHEDULE
S.No. Industries and other classes of
consumers
Extent
1. Water and Sewage pumping installation of
Municipalities, Corporations and other
local Bodies used for public utility water
schemes
Full exemption
2. Power-looms registered with the Textile
Commissioner or the Director, handlooms.
Duty in excess of 6 per cent per
unit of tariff of M.P. Electricity
Board.
3. Flour Mill (Atta Chakki) Duty in excess of 3 per cent per
Board.
4. Oil expeller, thrasher and similar other
machinery used for agricultural
processing.
Board.

5. Industries getting electric supply at High
Voltage whose contract demand does not
exceed 112 KW/125 KVA
Duty in excess of 3.5 per cent
per unit of tariff of M.P.
Electricity Board.
6. Textile Mills other than Spinning Mills Duty in excess of 5 per cent per
Board.
7. Power intensive consumption of Bharat
Aluminium Co. Korba (87.9% of total
consumption).
Board.

2. This notification shall be deemed to have come into force with effect
from 1st day of April, 1995.

APPENDIX II-B-(10)
MADHYA PRADESH
No.10 of 1997
MADHYA PRADESH ELECTRICITY DUTY (AMENDED) ACT, 1996
[Received the assent of the Governor of the 14 the March, 1997; assent first
published in the "M.P. Gazette (Extraordinary )" dated the 18 the March 1997]
An Act further to amend the M.P. Electricity Duty Act, 1949.
Be it enacted by the M.P. Legislation in the forty-seventh year of the Republic
of India as follows :-
1. This Act may be called the M.P. Electricity Duty (Amendment) Act,
1996.
2. In sub section (1) of section 3 of the M.P. Electricity Duty Act, 1949
(No.10 of 1949) under the tables of rates of duty, in part-B, against item (6) in
column (3) for the figures "24", the figures "15" shall be substituted.

APPENDIX III (a)
RATES OF FEES FOR TESTING AND INSPECTION OF
ELECTRICAL INSTALLATIONS
(Reference Para 5.1 (b) and (c)
INSPECTION OF ELECRTRICAL INSTALLATIONS
Class of installations Capacity Fee in
Rupees for
each
inspection
Frequency of
inspection
(1) (2) (3) (4)
A. Licensed under-
taking or undertakings
as supplying energy
under section 28 of
Indian Electricity Act
1910 including those
of M.P. Electricity
Board.
1.Upto and including 25 KW
of generating plant installed
or/and the capacity of the
receiving transformers.
50 Once in a
year.
2. Exceeding 25 KW up to and
including 50KW of generating
plant installed or/and the
capacity of the receiving
transformers.
100 -Do-
3. Exceeding 50KW and up to
and including 100 KW of
generating plant installed
150 -Do-
4. Exceeding 100 KW and up
to and including 250 KW of
the generating plant installed
250 -Do-
to and including 500KW of
or/and capacity of the
receiving transformer.
400 -Do-
6. Exceeding 500KW and up
600 -Do-

(1) (2) (3) (4)
800 -Do-
8. Exceeding 1000 KW and
upto and including 5000 KW
1200 -Do-
upto and including 10000 KW
1800 -Do-
1. Up to including 25 KW 50 Do B. Places other than
those in (A) where the
generating plant is
installed.
2. Exceeding 25 KW and up to
and including 50 KW.
100 Do
3. Exceeding 50 KW and up to
150 Do
to and including 250 KW.
250 Do
5. Exceeding 250KW and up
400 Do
600 Do
800 Do
1200 Do
1800 Do
10. Exceeding 10000 KW. 2500 Do

(1) (2) (3) (4)
C. Medium, High or
Extra High Voltage
installations obtaining
electrical energy from
a license including
M.P. Electricity Board
or from a sanction
holder under Section
28 of the Indian
Electricity Act.1910 or
from any other
supplier.
(i) in respect of consumers in
rural areas with an installed
capacity not exceeding 25 KW.
1. Upto and including 5 KW

2. Exceeding 5 KW and upto
3. Exceeding 10KW and upto
(ii) In respect of other
consumers:

10
15

30

Once in three
Year
Do
Do
1. Upto and including 5 KW 20 Once in 3
years for
medium
voltage and
once in a year
for others.
30 Do
50 Do
100 Do
150 Once in
3 years for
medium
voltage, in a
years for
others.
upto and including 250 KW.
250 Do
400 Do

(1) (2) (3) (4)
600 Do
9. Exceeding 750KW and upto
800 Do
up to and including 5000 KW.
1200 Do
up to and including 10000
KW.
1800 Once in 3
years for
medium
voltage and
once in a year
for others.
12. Exceeding 10000 KW 2500 Do
D. New High Tension
or Extra High Tension
over head lines.
1. Up to first 10 km. or part
thereof.
100 At the time of
commissionin
g
2. For each addition Kms. Or
part thereof.
5 Do
E. For the inspection
of a high voltage
Luminous tube sigh
electrode boiler, X-
Ray or High
Frequency installation
under Rule 71 to 73 of
the Indian Electricity
Rules, 1956.
25 Once in a year
F. Cinemas of other
places of public
entrainment.
1. For Cinema or theater other
than a traveling cinema or
other temporary places of
public entertainment.
20 Once in a year
2. For a traveling cinema or
other temporary place of
public entertainment.
100 Twice in a
year

Notes:-
1. For the purpose of inspection fees.

(a) The capacity of an installation shall be the aggregate capacity of the
generating plant or apparatus installed.
(b) Kilo volt amperes or D.H.P. shall be read instead of kilo watts
wherever the machinery or equipment shall is so rated.
(c) Each generating plant. Sub-station or high voltage equipment shall be
deemed to be a separate undertaking or installation. However, L.T. and
H.T. lines attached to such undertaking shall be deemed to be their part
and no separate fee will be charged except in case of new H.T. line.
2. Payment of fees:-
(a) The fees shall be paid by the owner or his agent into a Government
Treasury under the Head XIII-Other Taxes and Duties B-Electricity
Duties-1-Fees under the Indian Electricity Rules, 1956 and the treasury
challan shall be sent to the Electricity Inspector to Government of
Madhya Pradesh.
(b) The fees shall be paid before the dates shown below:-
(i) For existing installation except those coming under category F-2 above,
the fees shall be paid before 1
st
May in each year.
(ii) For installation coming under F-2 above the fee for the respective half
year shall be paid before 1
st
May and November. In case the installation
is not in use on the above dates, the fee for each half year shall be paid
before the installation is used.
(iii) For new H.T. installation or new cinemas including additions or
alterations the fee shall be paid in advance and the treasury challan shall
be sent to Electrical Inspector along with the application for inspection
and/or approval of such installation.
(iv) Fees payable for additional inspection under note 7 below shall be paid
before the dates specified by the Electrical inspector in each case.

(v) For other new installations including additions or alterations and
seasonal factories the fees shall be paid before the installations are
brought into use.
(c) In case the fee is not paid before the dates shown in sub-clause (iv), the
fee payable shall be increased by twenty per cent.
(d) In case the inspection or additional inspection is not carried out, the fee
payable shall be adjusted towards that payable for the subsequent year or
half year.
3. If any new installation is brought into use during the last two months of
the financial year, the annual fee paid shall be deemed to cover the short
period of the year in which the fee is paid as well as the full period of
the next financial year.
4. If any installation is disconnected or dismantled before an inspection is
carried out, no fee shall be charged.
5. In case of motors or other apparatus for power purpose installed on trial
for a period exceeding 15 days, no fee shall be charged.
6. Year for the purpose of this notification means a financial year from
1
st
April to 31
st
March.
7. The fees prescribed above will be payable for each periodical inspection
as per frequency of inspection shown above. The first or initial inspection will
be deemed to be the periodical inspection for the period in which the inspection
has been carried out. For each additional inspection carried out at the request of
the owner or due to breach of any of the provisions of the Indian Electricity Act
or Rules there under of the cinematography rules and regulations, one half of
the fees prescribed will be charged.

APPENDIX III (b)
Refer para 5.1 (b) & (c)
Bhopal, the 22nd August 1987
No.4134-F-109-XIII-86:- In exercise of the powers conferred by sub-rule (2) of
the rule 7 and sub-rule (2) of rule 46 of the Indian Electricity Rules, 1956 and
in super session of all the previous orders and notification issued on the subject,
the State Government hereby directs that the fees for testing and inspection and
generally for the services of Electrical Inspectors to Government or their
assistants under the Indian Electricity Act, 1910 (IX of 1910), shall be levied in
accordance with the following scale of rates. These rates shall come in force
from 1st October 1987.

Part I
Inspection of Electrical Installations
Class of installation Capacity Fee in Rs.
For each
inspection
Frequency of
inspection
(1) (2) (3) (4)
A. The installation of
the electricity
supplier, consumers
and electricity
producers
(i) Medium voltage
Installation of the
consumers
- Once in three years
for medium voltage
installations of the
consumers and once
in a year for other.
(1) Agricultural
installations
10
(2) Flour mills up to 10
HP In rural areas
in other areas
15

30

(3) Other installation 40
(ii) High and Extra High
voltage installation and
power station-

(1) Up to 25 KW 60
(2) Exceeding 25 KW
and up to 100 KW
150
(3) Exceeding 100 KW
and upto 500 KW
400
and upto 1000 KW
800
and upto 5000 KW
1500
(6) Exceeding 5000 KW 3000

B. New H.T. or E.H.T. over
head lines
1. Up to first 10
Kilometers or part
thereof
200
2. For each
additional
Kilometer or part
thereof.
10
C. High Voltage installation
under Rules 71 to 73
50 Once in the year
D. Cinemas or other places
of public entertainment
1. For Cinema or
Theatre other than
traveling cinema
or temporary place
of public
entertainment.
400 Once in a year
2. For a traveling
cinema or other
temporary place of
public
entertainment
200 Twice in a year
E. Overhead lines and
service lines other than those
covered by item B.
For each spam. 10
F. For lines crossing under
rule 27.
For each crossing 50
G. New H.V. cables (other
than overhead lines)
1. For first KM or
part there of,
50
2. For each
additional KM or
part thereof.
20

Note:- (1) For the purpose of inspection fees -
(a) Generators and transformers, which have been installed in the same
enclosure or adjacent to each other and which normally run in parallel, will be
treated as on installation and the inspection fees will be charged on their
aggregate capacity. But the transformers and generators which normally do not
run in parallel and which have not been installed adjacent to each other or in
the same enclosure will be treated as separate installations.
(b) Equipment other than generators and transformers receiving electricity
supply from the same but and at the same voltage and which are installed in the
same enclosure or adjacent to each other will be treated as one installation and
inspection fees will be charged on their aggregate capacity, But equipment
receiving electricity supply from different buses or at different voltage or
which have not been installed adjacent to each other or in the same enclosed
will be treated as separate installations.
(c) Kilowatts Amperes or B.H.P. shall be read instead of Kilowatts
wherever the machinery or equipment is so rated.
2. Payment of Fees:- (a) The fees shall be paid by the owner or his agent into a
Government Treasury under the head:-
Revenue Head for installation except
Cinema
0043- Taxes and Duties on
Electricity
102 Fees under the Indian
Electricity Rules
And
Revenue Head for Cinema 0043 Taxes and Duties on
Electricity
103 Fees for the Electrical
Inspection of Electrical of
Cinemas
and the treasury challan shall be sent to the Electrical Inspector to Government
of Madhya Pradesh.

(b) The fees shall be paid before the dates shown below:-
(i) For existing installations except those coming under categories D-2
above, the fees shall be paid before 1st May in each year.
(ii) For installations coming under categories D-2 above the fee for the
respective half year shall be paid before 1st may and 1st November. In case the
installation is not in use on the above dates, the fees for each half year shall be
paid before the installation is used.
(iii) For new H.T. installation or new cinemas including additions or
alternations, the fee shall be paid in advance and the treasury challan shall be
sent to the Electrical Inspector along with the application for inspection and/or
approval of such installation. The fee such installations shall be 50 per cent
more that the rate shown above.
(iv) For other new installations including additions or alternations and
seasonal factories, the fees shall be paid before the installations are brought
into use:-
(v) Fees payable for additional inspection under note 7 below shall be paid
before the dates specified by the Electrical Inspection in each case.
(vi) Fees under category E shall be levied only for each subsequent
inspection necessitated due to branch of any of the provisions of the Indian
Electricity Act 1910 or rules made thereunder. Separate fee shall be payable for
each service line tapped from the same pole.
(vii) Fees under category F shall be payable in advance by the person
requesting for the inspection.
(c) In case the fees is not paid before the dates shown in sub-clause (b), the
fee payable shall be increased by twenty per cent.
(d) In case the inspection or additional inspection is not carried out, the fee
paid shall be adjusted towards that payable for the subsequent year or half year.
3. If any new installation is brought into use during the last two months of
the financial year, the annual fee paid shall be deemed to cover the short period
of the year in which the fees is paid as well as the full period of the next
financial year.

4. If any installation is disconnected or dismantled before an inspection is
carried out no fee shall be charged.
5. In case of motors or other appratus for power purpose installed on trial
for a period not exceeding 15 days, not shall be charged.
6. Year for the purposes of this notification means a financial year from
1
st
April to 31
st
March.
7. The fees prescribed above will be payable for each periodical inspection
as per frequency of inspection shown above. The first or initial inspection will
be deemed to be the periodical inspection for the period in which the inspection
has been carried out. For each additional inspection carried out at the request of
the owner or due to breach of any of the Indian Electricity Act, or Rules
thereunder or the Cinematograph Rules and Regulations one half of the fees
prescribed will be charged.
Part II
DISPUTES
If the Electrical Inspector is called upon to settle any difference or dispute
arising or dispute under the Indian Electricity Act, 1910 or the rules made there
under or under any agreement, the following fee shall be payable:-
Rs.
(a) In respect of low and medium
voltage consumers
50
(b) In respect of High and Extra High
voltage consumers
250
Note:- On receipt of application in connection with a difference or dispute
between a consumer and licensee as to the correctness of any meter, the
Electrical Inspector will arrange with the consumers and the Licensee to attend
at the premises of the consumer. The Electrical Inspector will take charge of
the meter of the which is not to be disconnected from the circuit except in his
presence and then only by the licensee.

Part III
Test of Apparatus
(1) For testing of metres and other testing, the fee shall be as follows:
S.No. Name of the test/equipment to be
tested
Fee payable (Rs. Per
meter per list)
1 2 3
(a) Ammeter Voltmeter, Watt Meter,
Power Factor Meter, Frequency
Meter of Earth Tester.
30
(b) Energy Meter-
Upto 20 Amps.
Exceeding 20 Amps.

30
60
(c) Insulation Tester-
500 Volts
Exceeding 500 volts

30
60
(d) Oil Test-Di-electrics supe gts/Acidity 30
(e) Insulation Test-
Low and Medium Voltage
High and extra High Voltage

30
60
(f) Voltage testing 30
Note:-
(1) In case 10 more meters of the same range and specification to be tested.
one batch voltage is to be tested or more within a continuous period at every
hour or half tan hour the fee payable shall be half of the fee shown above.
(2) The above tests will be carried out to the extent of the facilities
available.
(3) If in case of dispute under section 26 of the Indian Electricity Act, the
testing of meter is found necessary a fee for such testing shall be in addition to
the dispute fee.

(4) The fee for tests other than shown above and found necessary shall be
charges at such rates as the State Government may fix from time to time.
(5) For testing of any equipment or sample an application shall be given as
per attached from. The equipment any terminals shall be in healthy condition.
Any auxiliary equipment necessary for the test shall also be produced.
(6) The fee payable shall be deposited in the Government Treasury and the
challan sent to the Electricity Inspector.

THE FORM OF APPLICATION FOR TESTING OF ELECTRICITY
APPARATUS AND OTHER TESTS
To,
The Electrical Inspector,

We are submitting the equipment/samples as per details below for testing:
1. Name of the equipment.
2. Name of the Manufacturer of the equipment.
3. Equipment's Manufacturer no.
4. The capacity and voltage to the equipment.
5. Details of the sample.
6. Date of taking the sample.
7. Name and Designation of the person who has taken out the sample.

We hereby agree that we shall not claim from the Government of the
Madhya Pradesh or the Electricity Inspector any compensation for any damage
to or loss of the apparatus due to any cause whatever during time it remains in
the custody of the Electrical Inspector.

---------------------------------------
Place
Signature of the applicant

Date.
NAME
DESIGNATION
NAME OF ORGANIZATION
By order on the same of the Governor of Madhya Pradesh,
P.K.DIXIT, Dy. Secy.

OFFICE OF THE ACCOUNTANT GENRAL
(WORKS & RECEIPTS AUDIT), MADHYA PRADESH
BHOPAL

STATE REVENUE AUDIT MANUAL
MADHYA PRADESH

ELECTRICITY DUTY

SECOND EDITION 2008

Issued by

Authority of the Accountant General
(Works & Receipts Audit) Madhya Pradesh
BHOPAL

PREFACE TO FIRST EDITION

This manual has been prepared for the guidance of the officers and staff
auditing Electricity Duty receipt and refunds. In this Manual the relevant
provisions of the law and procedure for assessment and collection of Electricity
Duty have been set out. If in the course of audit, reference has to be made to
the Act or the Rules framed thereunder, such a reference should be to the
Section/Rules of the various Acts and Rules framed there under and not to the
paragraphs of this manual.
2. The material contained in this manual may require modification in
the light of further experience gained in the course of audit and
subsequent orders and instructions issued by the State Government.
3. The State Receipt Audit group will be responsible for keeping the
manual uptodate.
4. The manual should be treated as a guide only and the audit checks
mentioned should not be taken as exhaustive.
5. Errors or omissions in the Manual may be brought to the notice of the
Accountant General (Works & Receipts Audit), Madhya Pradesh to
whom suggestions for improvement may also be sent.

Sd/-
Accountant General
(Works & Receipts Audit)
Madhya Pradesh

PREFACE TO SECOND EDITION

It is my pleasure to present the second edition of the Revenue
Audit Manual on Madhya Pradesh Electricity Duty (ED). Since 1982, when the
first edition of this manual was brought out, several changes in the relevant
Acts and Rules have taken place, which are incorporated in the second edition
so as to make it uptodate.
This manual has been prepared for guidance of the officers and
staff auditing Electricity Duty (ED) receipts and refunds. In this manual, the
relevant provisions of the law and the procedure for assessment and collection
of Electricity Duty have been set out. However, in course of audit, reference
has to be made to the Act or the Rules framed thereunder.
The material contained in this manual may require modification
in the light of further experience gained in course of field audit and subsequent
orders and instructions issued by the State Government from time to time.
The State Revenue Audit group will be responsible for keeping the manual
uptodate.
The manual should be treated as a guide only and the audit
checks indicated should not be taken as exhaustive. Errors or omissions in the
manual may be brought to the notice of the Accountant General (W&RA)
Madhya Pradesh, Bhopal. Suggestions for further improvement of this manual
are welcome.

BHOPAL
J une 2008
Accountant General
Madhya Pradesh

TABLE OF CONTENTS

Chapter Subject Page No.
1. Legislative background 01
2. Departmental set up 03
3. Definitions 05
4. Levy, assessment and realisation of
electricity duty
08
5. Levy, assessment and realisation of fees 18
6. Offences, penalties, fines and appeals 21
7. Records and returns 27
8. Audit checks 32
Appendices
Appendix-I Hon.Supreme Court Decisions 36
Appendix-II Rates of duty 38
Appendix-III Rates of fees for testing and inspection of
electrical installations
61

Electricity Duty SRA

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