RAJASHREE CEMENT Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) IN this batch of writ petition, the petitioners are persons on whom liability is created for payment of what is known as electricity tax under the provisions of the karnataka Ordinance No. 8 of 2003, which amended Section 3 of the Karnataka Electricity (Taxation on Consumption) Act, 1959 (for short 'the Act') and levied a tax burden on persons like the petitioners in terms of subsection (1) of Section 3 as amended by the ordinance.

(2.) PETITIONERS who were essentially persons who either generate themselves such electricity which is sought to be taxed under the amended provisions or who got it from any other non-licencee suppliers free of cost and on whom is created this liability for payment of tax. are complaining that the levy itself is bad as the levy on electricity generated amounts to levy on generation at the generating point and not a levy on consumption; that it is beyond the competence of the State government to have issued an ordinance of this nature etc.

(3.) THE Ordinance itself was promulgated with effect from 16-10-2003 and later on it was replaced by the Karnataka Act No. 5 of 2004. which was also made retroactive from the date on which the Ordinance had been promulgated i. e. from 16-10-2003 and what is significant to notice is that such levy itself was for the duration between 16-10-2003 and 1-7-2004.