RAJASTHAN TEXTILE MILLS ASSOCIATION Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE members of the petitioner's Association are the persons who have set up captive power generation plants for the use and consumption of electricity in their respective industries and are not indulging in sale and supply of electricity.

(2.) THE Rajasthan State Legislature in exercise of its authority to legislate in the subject of `tax on consumption and sale of electricity' in terms of Entry 53 of the State List of 7th Schedule of the Constitution had enacted Rajasthan Electricity (Duty) Act of 1962 (for short the "act of 1962"). Section 3 of the Act of 1962 envisages the levy of Duty on `the energy consumed by a person other than a supplier, generating energy for his own use or consumption'. In terms of proviso (3) to Section 3, by Notification dated 12. 12. 1989, the State Government considering it expedient in the public interest remitted the Electricity Duty on consumption of electricity by persons generating energy for their own use and consumption. Said Notification had continuously remained in force until issue of impugned Notification dated 12. 7. 2004, by which the Notification dated 12. 12. 1989 had been rescinded. This had the effect of making such consumption of electricity, which has been generated by captive generation plants, subject to Duty at the rate prescribed in this respect from time to time.

(3.) SIMULTANEOUSLY, another Notification dated 12. 7. 2004 (Annex. P/2) was also issued fixing the rate of Electricity Duty payable on consumption of self generated energy for any purpose, at 25 paisa per unit. This Notification was also used carrying a statement that it is expedient in the public interest so to do. However, subsequently, on considering the representation made by the petitioner's association and representation of other industries, another Notification was issued on 28. 7. 2004 modifying the rates of Electricity Duty payable on consumption of self generated energy for any purpose, by prescribing different rates of Electricity Duty, depending on the total consumption of the unit per year. THE PETITIONER CONTENDS