Amendment to Andhra Pradesh Electricity Duty Act, 1939 1


orders were issued exempting from payment of electricity duty payable under sub-section (1) of section 3B of the A.P Electricity Duty Act, 1939, to captive power generating units in the State with immediate effect in respect of the Energy generated and consumed by them. However, it was subject to the condition that the electricity generated by such captive units shall be utilized fully by them.

Madras Cements Ltd., has represented that their company as well as many captive power producers are unable to sell its surplus energy generated by them as exemption under the above notification is applicable only if the
energy generated is fully utilized by them . Moreover, there is no clarity regarding the duty to be paid for sale of surplus Power.

After careful examination of the matter, Government here by decided for exemption granted from payment of electricity duty payable by the captive power generating units in respect of energy generated and consumed by them. However the surplus energy if any sold to the Grid will attract electricity duty in accordance with the provisions of Section 3 of the Electricity Duty Act, 1939.

This order issues with the concurrence of the Finance Department vide their U.O. No.171/PF.I/2013, dt.08-10-2013.

Accordingly, the following notification will be published in the Extraordinary Issue of the Andhra Pradesh Gazette, dated the 18th November 2013.

NOTIFICATION

In exercise of the powers conferred by sub-section (3) of Section
3B of the Andhra Pradesh Electricity Duty Act, 1939 (Act No. V of
1939), the Government of Andhra Pradesh hereby makes the following amendment to the orders issued in G.O. Ms.No.25, Energy (RES-A1) Department, dt. 23-05-2013 and published in the Extraordinary Issue of the Andhra Pradesh Gazette No.351 dated the 24th May, 2013.

AMENDMENT

In the said orders for the words “subject to the condition that the electricity generated shall be utilized fully by them”, the words – “Subject to the condition that the surplus energy if any sold to the Grid will attract electricity duty in accordance with the provisions of Section
3 of the said Act” shall be substituted.

G.O.Ms. No. 63 Dt.16-11-2013
1. G.O.Ms.No.25, Energy (RES-A1) Department, dt.23.05.2013.
2. Representation received from M/s Madras Cements Ltd., dt.20.08.2013.


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One thought on “Amendment to Andhra Pradesh Electricity Duty Act, 1939

  • Ananth

    I have seen your articles in TGNS on exemption of electricity duty for captive consumers with a condition that the surplus energy if any sold to the Grid will attract electricity duty in accordance with the provisions of Section 3 of the said Act.

    I have the following doubts:

    1. The condition says that the electricity duty will be attracted for the units sold to grid in accordance with the provisions of section 3 of the Act. But it does not say under section 3B of the Act.. Hence I understand the electricity duty levy will be Rs 0.06 paise per unit and the person responsible to pay is the Licensee as mentioned in section 3 of the Electricity Act. If this is the understanding how can that be a condition to the Captive generator.

    2. Or the above such condition should be construed as, the surplus energy should be sold to grid only and not to any third party ?

    3. If at all any excess units are sold to third party will there be any duty on the self consumed units @ 0.25 paise is my question.

    Request you to clarify the above three points.