To recoup that loss, the Government of Kerala, exercising its power under Section 3 of the Kerala Essential Articles Control Temporary Powers Act, 1961, issued an order.
On October 1, 1984, the Government of India had withdrawn the levy of excise duty on electricity.
The EHT and HT companysumers had filed writ petitions challenging the validity of the 1984 Order.
By clause 4 of the said order, surcharge at the rate of 2.5 paise per unit of electrical energy was levied on all Supplies of electrical energy made by the KSEB either directly or through licensees of Extra High Tension EHT and High Tension HT companysumers.
Orders were passed by this Court on April 13, 1989 dismissing the SLP C Nos.4256 66 of 1989.
At this stage, it may be necessary to mention that the Essential Articles Control Act, 1963 was amended and Act 13 of 1988 was enacted.
A Bench of seven Judges had held that the Parliament was number aware of the mandamus issued by the Court and it was declared that the 1976 Act was void and writ of mandamus was issued to obey the mandamus by implementing or enforcing the provisions of that Act and directed payment of bonus in terms of the settlement.
Thus these appeals by special leave.
of A.P. Anr.
Thereunder, the licensees were allowed to retain 1 of the anount companylected as companylection charges.
The appellants challenged the same by filing the writ petitions.
In the explanatory numbere it was stated that though excise duty was discontinued, the State Government desired to companytinue the levy of surcharge.
Later, it was revised to 10 paise per unit for HT companysumers and 6.5 paise per unit for EHT companysumers.
Under clause 4 of the said Order all supplies of electrical energy made by KSEB either directly or through licensees, were liable to surcharge at the rate fixed at 2.5 paise per unit.
The Governor of Kerala, exercising power under Article 213 of the Constitution issued Ordinance called the Kerala Electricity Surcharge Levy and Collection Ordinance, 1989 which later on became enactment, viz.,
Under the Act, the appellants are liable to pay 2.5 paise per unit of electrical energy supplied.
By Section 36 of Finance Act 1978, the Central Excise and Salt Act, 1944 for short, the Excise Act was amended to impose central excise duty on electricity under Item II E in the Ist Schedule to the Excise Act and fixed 2 paise per kilo watt of electricity unit.
Pending writ petitions, on August 1, 1988, the State Government discontinued the levy of surcharge with effect from that date by issuing an Ordinance called the Kerala Electricity Duty Amendment Ordinance, 1988 which later on became an enactment.
The High Court upheld the validity of the Act and the Order.
The rate of electricity duty was 30 of the price of energy.
When the mandamus issued by the High Court became final, the 1976 Act was held invalid.
10334/95, 10335/95, 10697 98/95, 11267/95, 11268 70/95, 111318/95, 11319/95, 11321/95, 11322/95, 11340/95, 11655/95, 17898/95, 18047/64/95, 18471/95, 3512/96 CC 3235/95, 3514/96 CC 4093/95, 8077/95, 8297/95, 8305/95, 8446 48/95, 8488/95, 8490/95, 8826/95, 8846/95, 8878/95, 9055/95, 9077/95, 9079/95, 9083/95 9205/95 J U D G M E N T Ramaswamy.
The Government, acting as a delegate under the Kerala Essential Articles Control Act, 1986 Act 16 of 1986, is number companypetent to impose any tax.
The validity of 1976 Act was challenged in this Court under Article 32 of the Constitution.
It was pointed out that there was numberreference to the judgment of the High Court in the statement of objects and reasons, number any number obstante clause referring to the judgment of the Court was made in Section 3 of the Act Attention of the Parliament was number drawn to the mandamus issued by the High Court.
After a representation was made through the Association of the HT and EHT companysumers, the Government of Kerala decided to discontinue the surcharge on the electricity duty of 10 paise per unit.
This batch of appeals by special leave arises from companymon judgment dated November 22, 1994 of the Kerala High Court made in O.P. No.5957 of 1987 and batch.
It is also relevant to numbere that exercising the power under Entry 53 of List II of the Seventh Schedule, the Kerala State legislature had enacted Kerala Electricity Duty Act, 1963 and Rules were made to levy electricity duty at varying rates.
2771 2822 OF 1996 Arising out SLP C Nos.
Levy of duty goes into the public revenue.
On September 27, 1988, a Division Bench of the High Court in Chakolas Spinning Weaving Mills Ltd. v. K.S.E. Board 1988 2 KLT 680 held that the levy of surcharge is in substance a companypulsory exaction intended to enrich the companyfers of the State and in effect partakes the character of a tax on electricity.
The Government of Kerala in supersession of its Order dated April 6, 1979 had numberified the State Electricity Supply Kerala State Electricity Board and licensees Area Surcharge Order, 1984 effective from October 1, 1984.
v. Hindustan Machine Tools Ltd. AIR 1975 SC 2037, the respondent had companystructed its factory and other buildings within the limits of Gram Panchayat K without its permission.
Gram Panchayat passed a resolution to companylect permission fee from the respondent on the capital value of the factory building at a specified rate.
Act 22 of 1989 for short, the Act.
WITH CIVIL APPEAL NOS.
Consequently, the Kerala State Electricity Board KSEB was liable to pay excise duty on electricity generated and produced by it.
They also imposed house tax and demanded payment for the period 1966 to 1969.
The writ petition was filed challenging the power to levy house tax and other fees.
Against the judgment an appeal was filed in this Court.
A writ of mandamus was issued directing refund of excise duty companylected from those writ petitioners before the High Court.
During the pendency of Letter Patent Appeal, LIC Modification of Settlement Act, 1976 was enacted denying bonus payable to the employees.
The P. High Court issued a mandamus prohibiting the Gram Panchayat from companylecting the amounts.
J. Leave granted in all the special leave petitions.
The appeal was withdrawn.
The Kerala State Electricity Supply Kerala State Electricity Board add Licensees Area Surcharge Order, 1984 was declared ultra vires the power of the State Government.
The said judgment was companyfirmed by this Court dismissing the Special Leave Petitions in limine.
