RANA SUGARS LTD. Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The common case of the petitioners before us is that by the impugned notifications issued by respondent No.1, duty is sought to be levied on sale of electricity in the course of inter-state sale/trade.

(2.) The petitioners are different legal entities carrying on different nature of businesses, but the common cause for filing the present writ petition is that all of them, inter-alia, have been selling or intending to sell electricity from their independent/captive power plants to customers situated outside the State of Punjab under the various segments.

(3.) The first endeavour of respondent No.1 to impose duty on such sale of electricity was by issuance of a notification dated 28.1.2010 under Section 3(1) of the Punjab Electricity (Duty) Act, 2005 (hereinafter referred to "said Act"). The Act has been made with the objective of consolidating and rationalising the law relating to levy and collection of duty on electricity and for the matters connected therewith or incidental thereto. Relevant Section 3(1) and 3(2) of the said Act reads as under:-