GOVERNMENT OF MAHARASHTRA

LAW  AND  JUDICIARY  DEPARTMENT

MAHARASHTRA ACT No. XXI OF 1963.

THE  MAHARASHTRA  TAX  ON  SALE  OF
ELECTRICITY ACT,  1963.

(  As  modified  upto  the  22nd  April  2013)

PRINTED  IN  INDIA  BY  THE  MANAGER  GOVERNMENT  PRESS  AND  STATIONERY
STORES,  KOLHAPUR  AND  PUBLISHED  BY  THE  DIRECTOR,  GOVERNMENT
PRINTING,  STATIONERY  AND  PUBLICATIONS,  MAHARASHTRA  STATE,
MUMBAI–400  004.

2013

[ Price  : Rs.  8.00 ]

1963 : Mah. XXI]

(i)

THE  MAHARASHTRA  TAX  ON  SALE  OF  ELECTRICITY ACT,  1963.
—————
CONTENTS.

PREAMBLE.

SECTIONS.

1.

Short  title,  extent  and  commencement.

2. Definitions.

3.

4.

Incidence  of  tax.

Payment  of  tax.

5. Utilisation  of  proceeds  of  tax.

6. Licensee  to  keep  books  of  account  and  submit  returns.

7.

8.

Power  to  exempt.

Inspecting  officers.

9. Recovery  of  tax.

10. Refund  of  tax.

11.

Penalties.

12. Offences  by  companies.

13.

Power  to  make  rules.

H  237-1

1

MAHARASHTRAACT  No.  XXI  OF  1963 1
[THE  MAHARASHTRA TAX ON SALE OF ELECTRICITY ACt, 1963.]

[24th April 1963]
(This Act received assent of the Governor on the 21st April 1963; assent was first pub-
lished  in  the  Maharashtra  Government  Gazette,  Part  IV,  Extraordinary,
on the 24th April 1963.)
Amended by Mah. 51 of 1965.

, ,
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, ,
, ,
, ,
, ,
, ,
, ,

, ,
, ,
, ,
, ,
, ,
, ,
, ,
, ,
, ,
, ,
, ,

, , 32 of 1974 (7–9–1974)*
, , 75 of 1975 (1–1–1976)*
, , 9 of 1988.
, , 8 of 1993 # (1–1–1994)*
, , 9 of 1997 @
, , 21 of 1998 @@ (1–5–1998)*
, , 25 of 1999.
, , 50 of 2000 ** (1–10–2000)*
, , 21 of 2004 $ (5–4–2004)*
, , 5 of 2008 (22–2–2008)*
, , 15 of 2008.

An Act to levy a tax on the sale of electricity in the State of Maharashtra, and to provide
for the  creation of a Fund therefrom for the improvement  and
development of power supply in the State.

WHEREAS, it  is  expedient to levy a tax on the sale of electricity in the State of Maharashtra
and to provide for the  creation of a Fund therefrom for the improvement and development of
power supply in the State; It is hereby enacted in the Fourteenth Year of the Republic of
India as follows :—

1.

(1) This Act may be called the Maharashtra Tax on Sale of Electricity Act, 1963.
(2)  It  extends  to  the  whole  of  the  State  of  Maharashtra.
(3) It shall be deemed to have come into force on the 1st  day of January 1963.

Short  title,
extent  and
commence-
ment.

2[2.

In  this  Act,  unless  the  context  otherwise  requires,—

Definitions.

54  of
1948.

36  of
2003.

(a) “ Board” means the State Electricity Board constituted under sub-section (1) of
section  5  of  the  Electricity  (Supply)  Act,  1948  and  functioning  as  such  at  the
commencement of  the Electricity  Act ;

(b) ‘‘Electricity Act” means the Electricity Act, 2003 ;
(c)  “power  utility”  shall  include  the  Board,  a  generating  company,  a  licensee  and
a  person  generating  electricity  primarily  for  his  own  use  and  for  the  use  of  his
associates  ;

(d) “prescribed’’  means  prescribed  by  rules  made  under  this Act  ;
(e)  “tax”  means  a  tax  imposed  under  this  Act  ;
(f)  words  and  expressions  used  but  not  defined  herein  shall  have  their  respective

meanings  as  assigned  to  them  under  the  Electricity  Act.]

1.  For  Statement  of  Objects  and  Reasons, see  Maharashtra  Government  Gazette,  1963,  Part  V.,  P.  11.
*  This  indicates  the  date  of  commencement  of  Act.
#  This  Act  came  into  force  on  1-1-1994, vide,  G.  N.,  F.  D.,  No.  MSC.  1092/CR-1137/NRG-2,  dated

the  4th  April  1994.

@  Maharashtra  Ordinance  No.  12  of  1996  was  repealed  by  Mah.  9  of  1997,  s.  48.
@@  Maharashtra  Ordinance  No.  6  of  1998  was  repealed  by  Mah.  21  of  1998,  s.  30.
**  Maharashtra  Ordinance  No.  18  of  2000  was  repealed  by  Mah.  50  of  2000,  s.  8.
$  Maharashtra  Ordinance  No.  15  of  2004  was  repealed  by  Mah.  21  of  2004,  s.  10.
2.  This  section  was  substituted  by  Mah.  21  of  2004,  s.  2.

H  237-2

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Maharashtra Tax on Sale of Electricity Act, 1963

[ 1963 : Mah. XXI

Incidence  of
tax.

1[3. Subject  to  the provisions  of this Act,  there shall  be levied and  paid, at  such rate
and from such date, either prospective or retrospective, as may be specified by the State
Government, by notification in the Official Gazette, a tax not exceeding fifty paise per unit,
2[in  respect  of  all  sales  of  electricity  to  a  consumer  by  a  power  utility  :]

3[Provided that, no tax shall be levied and collected or paid on the electricity sold by

Payment
of  tax.

12[Utilisation
of  proceeds
of  tax.]

one  power  utility  to  another  power  utility.]

4. Every 4[power utility] shall pay to the State Government at the time or times and

in  the  manner,  prescribed,  the  amount  of  tax  payable  under  this Act.

5[5.

(1) The proceeds of the tax (together with any interest payable under section 9)
recovered  under  this  Act,  shall  first  be  credited  to  the  Consolidated  Fund  of  the  State,
and  under  appropriation  duly  made  by  law  in  this  behalf,–

(a)  an amount  of  tax  equivalent to 6[eight paise] per  unit  paid by  power  utility  to
the  State  Government  in  respect  of  sale  of  electricity  to  commercial  and  industrial
consumers  shall  be  transferred  to  the  Maharashtra  Energy  Development  Agency
established  under  the  Societies  Registration Act,  1860  or  its  successor,  for  executing
schemes  of  generation  of  renewable  and  non-conventional  sources  of  energy;  and

21  of
1860.

7

*

*

*

*

(2)  Any    amount    transferred    to      the    Maharashtra  Energy    Development    Agency
* ]  under  sub-section  (1)  shall  be  charged  on  the  Consolidated  Fund
*

*

8[
of  the  State.]
*
*

9

*

*

*

Licensee  to
keep  books
of  account
and submit
returns.

Power  to
exempt.

Inspecting
officers.

6. Every 10[power utility] who is required to pay tax shall keep books of account in
the  prescribed  form,  and  submit  to  the State  Government  or  to  an  officer  authorised  by
that  Government  in  this  behalf,  returns  in  such  form,  and  at  such  times,  as  may  be
prescribed,  showing  the  units  of  energy  sold  by  him  and  the  amount  of  tax  payable
thereon  and  the  amount  of  tax  already  paid  by  him.

7. Subject to such conditions (if any) as it may, impose, the State Government may,
if  it considers  it  necessary  in the  interest  of  the development  of  power  supply so  to  do,
by notification in the Official Gazette, exempt the sale of energy 11[by any class of power
utility  or  to  consumers]  from  the  payment  of  the  whole  or  any  part  of  the  tax  payable
under  this  Act.

8.

(1) The State Government may, by notification in the Official Gazette, appoint any
persons,  having  the  prescribed  qualifications  to  be  Inspectors  for  the  purposes  of  this
Act.

(2)  Every  Inspector  shall  perform  such  duties  and  exercise  such  powers,  as  may  be

prescribed.

(3)  Every  Inspector  shall  be  deemed  to  be  a  public  servant  within  the  meaning  of

section  21  of  the  Indian  Penal  Code.

XLV of
1860.

Recovery  of
tax.

9.

12[Any sum due on account of the tax, if not paid at the time and in the manner
prescribed,  shall  be  deemed  to  be  in  arrears;  and  thereupon,  interest  on  such  sum  shall
be  payable  at  the rate  of  18  per  cent.  per  annum  for the  first  three  months  immediately

1.  This  section  was  substituted  by  Mah.  50  of  2000,  s.  3.
2.  These  words  were  substituted  for  the  words  “on  every  unit  of  energy  sold  by  a  generating

  licensee.”,  by  Mah.  21  of  2004,  s.  3(a).

3. This  proviso  was  added  by  Mah.  21  of  2004, s.  3(b).
4. These  words  were  substituted  for  the  words  “generating  licensee”,
5. Section  5  was  substituted, ibid.,  s.  5.
6. These  words  were  substituted  for  the  words  “four paise”  by  Mah.  15  of  2008,  s.  2.
7. Clause  (b)  was  deleted  by  Mah.  5  of  2007,  s.  9(a).
8. The  words  “and  the  State  Electricity  Fund”  were  deleted,
9. Section  5A  was  deleted, ibid.,  s.  10.

ibid., s.  9(b).

ibid., s.  4.

10. These  words  were  substituted  for  the  words  “generating  licensee”,
11. These  words  were  substituted  for  the  words  “to  any  class  of  licensees  or  consumers”, ibid., s.  8.
12. This  portion  was  substituted  for  the  portion  beginning  with  the  words  “Any  sum  due”  and

ibid.,  s.  7.

ending  with  the  words  “payable  on  such  sum;”  by  Mah.  75  of  1975,  s.  2.
13. This  margianl  note  was  substituted  for  the  original  by  Mah.  5  of  2008,  s.  9  (c).

Refund  of
tax.

Penalties.

Offences  by
companies.

1963 : Mah. XXI]

Maharashtra Tax on Sale of Electricity Act, 1963

3

after  the  time  such  sum  has  become  due  and  thereafter,  at  the  rate  of  24  per  cent.  per
annum  till  such  sum  is  paid;]  and  the  sum  together  with  the  interest  thereon,  shall  be
recoverable  either  through  a  civil  court  or  as  an  arrear  of  land  revenue  at  the  option  of
the State Government, or any officer authorised by the State Government in this behalf.
10. The  State  Government  may  by  rules  prescribe  that  in  such  circumstances,  and
subject to such conditions (including any period of limitation) as may be specified in the
rules, a refund of the whole or any part of the  tax may be granted to the 1[power utility.]

11.

If  any  person–

(a)  fails  to  keep  books  of  account,  or  to  submit  returns,  in  accordance  with  the

provisions  of  section  6  and  the  rules  made  in  that  behalf,  or

(b) wilfully obstructs an Inspector in the exercise of the powers conferred, or in the

discharge  of  duties  imposed,  upon  him  by  or  under  this  Act,  or

(c)  contravenes  any  rule,
he  shall,  on  conviction,  be  punished  with  fine  which  may  extend  to  one  thousand

rupees.
12.

(1)  Where  an  offence  under  this Act  has  been  committed  by  a  company,  every
person who at the time the offence was committed, was in charge of and was responsible
to the company for the conduct of the business of the company, as well as the company
shall  be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be  proceeded  against
and  punished  accordingly  :

Provided  that,  nothing  contained  in  this  sub-section  shall  render  any  such  person
liable to any punishment provided in this Act 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  anything  contained  in  sub-section  (1),  where  an  offence  under
this  Act  has  been  committed  by  a  company  and  it  is  proved  that  the  offence  has  been
committed with the consent or connivance of or is attributable to any neglect on the part
of, any director, manager, secretary or other officer of the company, such director, manager,
secretary, or other  officer shall also be deemed to  be guilty of that offence  and shall be
liable  to  be  proceeded  against  and  punished  accordingly.

Explanation.–For  the  purposes  of  this  section–

(a) “company” means a body corporate and includes a firm or other association of

individuals,  and

(b) “director” in relation to a firm means a partner in the firm.

13.

(1) The State Government may, by notification in the Official Gazette, make rules

to  carry  out  the  purposes  of  this  Act.

Power  to
make  rules.

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,

such  rules  may–

(a) prescribe the time or times and the manner of payment of tax under section 4;

2*

*

*

*

*

(c)  prescribe  the  form  of  books  of  account to  be  kept  and  the  times  at  which  and

the  form  in  which,  the  returns  required  by  section  6  shall  be  submitted;

1. These  words  were  substituted  for  the  words  “generating  licensee”  by  Mah.  21  of  2004,  s.  9.
2. Clause  (b)  was  deleted  by  Mah.  32  of  1974,  s.  4.

4

Maharashtra Tax on Sale of Electricity Act, 1963

[1963 : Mah. XXI

(d) prescribe the qualifications, the powers and duties of Inspectors under section 8;
(e)  prescribe  the  circumstances  in  which,  and  conditions  subject  to  which,  refund

may  be  granted  under  section  10;

(f)  provide  for  giving  effect  to  the  provisions  of  this  Act.

(3) The power to make rules conferred by this section shall, except on the first occasion
of the exercise thereof, be subject to the condition of the rules being made after previous
publication.

(4) Every rule made under this section shall be laid, as soon as may be after it is made,
before each House of the State Legislature while it is in session for a total period of thirty
days which may be comprised in one session or in two successive sessions, and if, before
the expiry of the session in which it is so laid or the session immediately following, both
Houses agree in making modification in the rule or both Houses agree that the rule should
not  be  made,  the  rule  shall  from  the date  of  publication  of  a  notification  in  the Official
Gazette of  such  decision  have  effect  only  in  such  modified  form  or  be  of  no  effect,  as
the  case  may  be;  so  however  that  any  such  modification  or  annulment  shall  be  without
prejudice  to  the  validity  of  anything  previously  done  or  omitted  to  be  done  under  that
rule.

H  237-4,760  Bks.-11.2013

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