OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT);

ASSAM GUWAHATI

REVENUE AUDIT MANUAL

ON

The Assam Electricity Duty Act, 1964

(SECOND EDITION-2007)

i

PREFACE TO THE FIRST EDITION

The manual is intended for guidance of the officers and Staff auditing Electricity Duty receipts and refunds. In this Manual the basic provisions of the law and procedure governing levy, assessment and collection of Electricity duty have been set out.

2. The provisions of this Manual shall not be quoted as authority in the course of audit on in any correspondence outside this office. In such cases reference should be made to the Section of the Act and the Rules framed there under.

3. The audit instructions in this Manual are supplementary to the general instructions contained in the Manuals/circulars etc., issued by the Comptroller and Auditor General of India. The Manual should be treated as a guide only and the audit checks indicated in it should not be taken as exhaustive.

4. The Receipt Audit Wing (State) will be responsible for keeping the Manual upto-date.

Suggestions for improvement of the Manual as well as pointing out of errors and omissions, if any, therein will be welcomed.

Shillong 793001 Dated………….1992 Sd/- Accountant General (Audit) Assam, Meghalaya, Mizoram and Arunachal Pradesh.

ii

PREFACE TO THE SECOND EDITION

In this edition of revenue audit manual on Electricity Duty Act, the materials contained in the First Edition has been up dated/modified on the basis of Notification/Amendments/Instructions issued by the State Government.

2. All out efforts have been made to include all the available fresh materials to make them useful to all concerned

3. The important points to be seen during audit have also been set out in this manual. These are, however, in the nature of guidelines and do not profess to be an exhaustive list.

4. While preparing Audit and Inspection Notes a particulars reference to the provisions of the Acts and Rules framed thereunder should be given and not to the paras of the manual.

5. Though the instructions contained need full compliance, but these do not debar audit staff from looking out for any other point of interest during the course of audit.

6. Revenue Audit Wing (State) headquarters will be responsible for keeping the manual up-to-date.

7. Any error/omission noticed in the manual and suggestion for its improvement, may be brought to the notice of the Principal Accountant General (Audit), Assam, Guwahati.

Guwahati Dated the December 2007. Principal Accountant General (Audit) Assam, Guwahati

iii

CONTENTS CHAPTER – 1 Para No.

Introduction and Legislative background/power to levy and collection of Electricity Duty 1.1 to 1.2

CHAPTER – 2

Organizational Set up 2.1

CHAPTER – 3

Levy, assessment and collection of Electricity Duty 3.1 to 3.15

CHAPTER – 4

Register and return 4.1 to 4.3

CHAPTER – 5

Audit Checks 5.1 to 5.6

CHAPTER – 1

INTRODUCTION The Comptroller and Auditor General of India derives his powers, in so far as they relate to the audit of receipts of the union and the States by virtue of section 16 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act 1971. Accordingly, the audit of receipts under the principal heads of revenue of the State Governments is being conducted by the Indian Audit and Accounts Department.

The basic purpose of receipt audit is to ensure that money due to Government have been properly collected and accounted for and that the executive does not grant unjustified or unauthorized exemption on remission to tax payers. The most important function of audit is to ensure that proper and adequate regulations and procedure have been prescribed by the Government, Finance (Taxation) Department, to secure an effective check on the assessment, collection and accounting of tax and to satisfy itself that such regulations and procedures are actually being followed.

This Manual is meant for supplementing the general principles governing the audit of receipts contained in Chapter 3 of the C&AG’s Manual of Standing Orders (Audit).

Legislative background and power to levy tax on consumption on sale of electricity.

Power to levy tax. 1.1 The authority to levy tax on consumption on sale of electricity is derived by

the State Legislature from entry 53 of list II (State List) of the Seventh Schedule to the Constitution of India.

Statutory provisions.

1.2 The Assam Electricity Duty Act, 1964 which provides for levy of duty on supply and generation of electric energy was brought into force with effect from 1st April 1965 under the Government of Assam, Notification No. FTX. 62/64/79 dated 31st March 1965. The Act is administered by the Finance (Taxation) Department through the Commissioner of Taxes and his subordinates.

In exercise of the powers conferred under Section 13 of this Act, the Government of Assam have framed the Assam Electricity Duty Rules, 1964.

2

CHAPTER – 2

Organisational set up. 2.1 The Government in the Finance Department administers the provisions of the

Act, the Rules framed thereunder through the Commissioner of Taxes, who is the Head of the organizational set up in terms of section 2A of the Act. He is assisted by the Additional Commissioner of Taxes, Joint Commissioner of Taxes, Deputy Commissioner of Taxes, the Assistant Commissioner of Taxes, the Assistant Commissioner of Taxes (Appeals), the Superintendent of Taxes and the Inspector of Taxes. The Assistant Commissioner/Superintendent of Taxes of the different areas are the assessing and collecting officers in their respective areas.

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CHAPTER – 3

Procedure to levy, assessment and collection of Electricity Duty.

DEFINITIONS 3.1 IN THE ASSAM ELECTRICITY DUTY ACT, 1964 UNDER THE

CONTEXT OTHERWISE REQUIRES –

(a) ‘Board’ means the Assam State Electricity Board constituted under Chapter II of the Electricity (Supply) Act, 1948. (Central Act 54 of 1948).

(b) ‘Consumer’ means a person, other than a licensee, who is supplied with energy – (i) by a licenses; or (ii) by the Board;

(c) ‘Energy’ means electrical energy; (d) ‘License’ means any person licensed under part II of the Indian Electricity

Act, 1910 (Central Act 9 of 1910) to supply energy and includes any person who has obtained this sanction in that behalf of the State Government under Section 28 of the said Act;

(e) ‘Prescribed’ means prescribed by rules made under the Assam Electricity Duty Act, 1964.

(f) ‘Unit’ in relation to the energy means kilowatt-hour; and (g) words and expressions not defined in the Assam Electricity Duty Act

(AED Act), 1964 but defined n the Indian Electricity Act, 1910 have the meaning assigned to them in the latter Act.

(Section 2 of the Assam Electricity Duty Act.)

(h) In the Assam Electricity Duty Rules (AED Rules), 1964 an ‘Assessee’

means the Board, a licensee or a person generating energy for his own use or consumption.

(Rule 29 (3) of the Assam Electricity Duty Rules)

3.2 LEVY OF DUTY (a) The duty shall be levied and paid to the State Government at such rate as

may from time to time be fixed by the State Government by notification in the official Gazette, per unit of energy (i) supplied to a consumer by the Board, or by a licensee generating energy or procuring energy in bulk from the Board, or (ii) generated by a person for his own use or consumption.

(b) for the purpose of computing the electricity duty, the consumption shown by the meters starting after the first meter reading date after commencement of the Assam Electricity Duty Act, 1964 shall be taken into account and consumption in a month shall form the basis of calculation.

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The rate of duty in respect of all premisser where no meter is maintained shall be as follows: - Paise per month

1. Every lamp of less than 30 watts 8 2. Every lamp of 30 watts or more but less than 40

watts 13

3. Every lamp of 40 watts or more but less than 60 watts.

17

4. Every lamp of 60 watts or more but less than 100 watts.

25

5. For every additional 15 watts or fraction thereof in excess of 100 watts in any lamp

4

6. For every plug point 20 7. For every meter whose rated capacity is below 1

horse power 15

8. For every meter whose rated capacity is 1/8 house power or more but below 1 house power.

25

9. For every meter whose rated capacity is house power or more but below ½ house power.

37

10. For every meter whose rated capacity is ½ house power or more but below 1 house power.

50

11. For every meter whose rated capacity is 1 house power

75

12. For every additional ½ house power or part there over 1 house rated capacity exceeds 1 house power

25

(c) No duty shall be levied on consumption or sale of energy (i) consumed by

or sold to the Government of India for consumption by that Government, or (ii) consumed in the construction, maintenance or operation of any railway by the Government of India.

(Section 3 (2) of the AED ACT and Rules 10A of AED Rules) 3.3 COLLECTION AND PAYMENT OF DUTY

The duty shall be collected and paid by the assessee into Government treasury by challan within 15 days of the close of the month to which the duty pertains.

(Section 4 of A.E.D. Act and Rules 3 of A.E.D. Rules) 3.4 RECORDS AND RETURNS

(a) Keeping of books of accounts - (1) Every assessee shall keep books of accounts containing the following

particulars separately for each consumer namely - (i) Service connection number, (ii) Address and brief description of premisser to which energy is supplied, (iii) Number of units of energy consumed, (iv) Rate of supply, (v) Details and amount of electricity duty charged, (vi) Date of payment of electricity duty, (vii) Details of duty adjusted or written off,

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(viii) Date of disconnection, (2) Where the tariff does not involve meterel supply of energy, the assessee

shall compute the supply for the purchase of calculation of duty on the following basis:-

If the amount of the monthly bill of the consumer = Rs. X and the net overall rate for the Category of supply if it were metered

= Y Paise

Then the number of units on which the duty shall be payable is

100X Y

(Rule 4 of A.E.D. Rules) (b) SUBMISSION OF RETURNS

As assessee shall submit to the assessing authority a return in Form AED – 3 within a month of the expiry of each half year ending 30th September and 31st March.

(Rule 5 of A.E.D. Rules)

3.5 ASSESSMENT AND ISSUE OF DEMAND NOTICE

After a month of the close of the half year 30th September or 31st March, the assessing authority may, on return furnished by the assesse or information in his possession, complete assessment and issued a notice of demand in Form AED-4 on the assessee. The duty demanded under the notice shall be payable within a month of such notice.

(Rule 6 of A.E.D. Rules) 3.6 INSPECTING OFFICER

The State Government may, by notification in the official Gazette, appoint inspecting officers to inspect records maintained by the assessee under the Act. An inspecting officer shall have access to ay books or records in the possession or under control of the assessee for ascertaining or verifying the amount of duty leviable under the Act. he may also enter any premises where energy is, or believed to be, supplied, used or consumed by the assessee.

(Section 7 of A.E.D. Act & Rules 7 & 8,0f A.E.D. Rule) 3.7 (a) PENAL DUTY AND PENALTIES

If an assesse evades, or attempts to evade the payment of duty either by

maintaining false records, submitting false returns, concealing energy supplied, or by any other means, he shall \, by way of penalty, pay, in addition to the duty payable under the A.E.D. Act, a sum not exceeding four times the amount of duty determined by the Superintendent of Taxes. Before taking any action in thus regard, the assessee shall however be given an opportunity of being heard.

(Section 8 of A.E.D. Act)

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(i) If an assessee (i) fails to keep record or submit return in the prescribed form or manner or submit return which is false, or (ii) intentionally abstracts an inspecting officer in the exercise of this powers an duties under the A.E.D. Act and the rule made there under or (iii) contravenes any such rule, he shall be liable, on conviction before a Magistrate, to a fine not exceeding Rs. 1000/-.

(Section 11 of A.E.D. Act) 3.8 RECTIFICATION OF MISTAKE

The authority which issued the Notice of Demand or passed an order on appeal in respect thereof may, at any time within three years from the date of issue of such notice or passing the order, and of his own motion, rectify any mistake apparent from the records of the case, and shall, within like period, rectify any such mistake as has been brought to his notice by the assessee. No rectification adverse to the assesseee shall however, be made without giving him a notice of intention of such rectification or without allowing him a reasonable opportunity of being heard.

If any such rectification has the effect of enhancing or reducing the amount of

duty, notice of demand shall be issued or refund shall be allowed, to the assessee.

(Rule 18 of A.E.D. Rules)

3.9 ROUNDING OF AMOUNT OF DUTY OR REFUND

In determining the half yearly amount of duty payable by on the amount of refund due to the assessee, fraction of a rupee below 50 paise shall be ignored and a fraction of 50 paise and above shall be taken as a whole rupee.

(Rule 19 of A.E.D. Rules)

3.10 METHOD OF PAYMENT

The duty shall be paid direct into government treasury by challan in quadruplicate in Form AED – 1

Two copies of the challan duly signed as proof of payment shall be returned to

the assessee and the other two copies retained by the Treasury Officer or the Sub-Treasury Officer.

One of the two copies retained by the Treasury Officer or Sub-Treasury

Officer, shall be sent to the Superintendent of Taxes on the day following the day of payment.

Every Treasury/Sub-Treasury Officer shall send an advice list to the

Superintendent of Taxes on the 5th day of every month showing the amount received in the previous month. The advice list shall contain the challan number and date, the name of the assessee and the amount paid.

(Rule 3 of AED Rules.)

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3.11 RECOVERY OF DUTY Any duty as well as any penalty imposed under the Assam Electricity Duty

Act which remains unpaid by an aassessee to the State Government shall be recoverable as an arrear of land revenue on by deduction from amounts payable by the State Government to the assessee.

(Section 9 of A.E.D. Act)

3.12 EXEMPTION

The State Government may in public interest, by notification in the official Gazette, exempt any license, consumer on person for the payment of the whole or part of the duty for such period and subject to such terms and conditions as may be specified in such notification.

(Section 12 of AED Act)

In exercise of the powers conferred by Section 12 of the Act, the State

Government has made various notification giving exemptions as mentioned below:

i) Energy used by Industrial concerns in Assam to the extent specified below, when such energy is exclusively consumed for industrial production –

a) For the first 1500 units – one paise per unit b) For the next 2500 units – one and a half paise per unit. c) For the rest of the units – Full exemption (with effect from 1st

April 1965) ii) Electrical energy used by vessel sea – going or inland—Full

exemption with effect from 1st April 1965. iii) Electrical energy used for agricultural or Horticultural

purposes---– Full exemption with effect from 1st April 1966. iv) Energy is generated by person through generator sets with

capacity upto 5 KVA of such household sector for his own use or consumption and when such energy is exclusively for his own domestic purpose only.

3.13 APPEALS

(a) An assessee may prefer to the Assistant Commissioner of Taxes (Appeals) an appeal against an order for payment of penal duty passed by the Superintendent of Taxes. Fee for such an appeal is Rs. 3 and is payable in court fee stamps.

(Section 8 (2) of AED Act read with rules 11 and 16 of AED Rules)

(b) An appeal against the order of the Appellate authority may be made to the

Assam Board of Revenue in such manner as may be laid down by that Board.

(Rule 12 of A.E.D. Rules)

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3.14 REFUND

An application for refund of duty paid in excess of the amount payable under the Act, shall be mad by the assessee in the manner prescribed in rule 13 of the A.E.D. Rules within one year from the date of issue of the notice of demand or within one year of the final order passed an appeal in respect of such assessment.

After passing a refund order the assessing authority may issue a refund

voucher in Form AED-7, in favour of the assessee or may set off the amount to be refunded or any part thereof against subsequent payments to be made by the asessee. If a refund voucher is issued, an advice list shall, at the same time be forwarded to the Treasury Officer concerned.

(Rule 13 of A.E.D. Rules) 3.15 FEES.

The following fees are payable in court fee stamps:

(a) upon an appeal under rule 11 Rupees three; (b) upon an application for a certified copy-- (i) application fee – 25 paise; (ii) authentication fee for every 360 works or part thereof – 50 paise; (iii) urgent fee Re. 1, if the applicant requires copy to be furnished

urgently. In an urgent case, fees and folios must accompany the application;

(iv) an additional fee subject to a minimum of Re. 1, if the applicant wants his copy to be sent by post;

(v) a searching fee of Re. 1; if the applicant wants a copy of order or document which is more than one year old;

(vi) upon any other miscellaneous petition – 50 paise.

(Rule 16 of A.E.D. Rules)

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CHAPTER – 4

REGISTERS AND RETURNS 4.1 REGISTERS.

Assessing authority shall maintain (a) a daily collection register in Form AED-2 in which he shall record

the receipt of challan indicating the number, dates and amounts of challan,

[Section 3 (5) of A.E. D Rules]

(b) an assessment register in Form A.E.D.-5 and [Rule 6 of A.E. D Rule 1964]

(c) a register of refund in Form A.E.D- 8 wherein particulars of all

application for refund and the order passed thereon shall be entered. [Rule 13 (7) of A.E. D Rule, 1964]

RETURNS 4.2 An assessee shall submit to the assessing authority a return in Form AED-2/3.

within a month of expiry of each half or the year on 30th September and 31st March each year.

4.3 Daily Collection Register

The challans received are noted in this register. The receipts deposited during each month as per departmental records are reconciled with the treasury figures and discrepancy, if any, noticed is reconciled.

(Page 42 of the H.Qrs. letter dated 5th March 1973)

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CHAPTER – 5 5.1 AUDIT CHECKS

In the audit of receipts and refunds of electricity duty and fees, the records

maintained by the Superintendent of Taxes, who are the assessing officer, are checked.

AUDIT OF ASSESSMENTS (a) The notice of demand issued after assessment of duty should be checked with reference to the return submitted as well as the report if any, of the Inspecting Officer to see whether duty has been correctly assessed at the rates prescribed by the Government.

It should also be ensured that dutiable units has been computed correctly and exemption has been allowed as per Government notifications issued, and that no irregular exemption has been allowed.

(b) As regards electrical energy used by Industrial concerns exclusively

for industrial production, audit check should be directed to see, particularly when there is increase in the rate of duty, that assessment for monthly consumption upto 40,000 units by an Industrial concern for which part exemption has been granted by Government with effect from 1st April 1965 has been made at the appropriate rate on correlating the extent of exemption with the prevailing rate of duty per unit.

An instance is given below for guidance When Rate of duty prescribed by Governments is 3 paise per unit, assessment

is to be made at the following rates. 1. For the first 15000 units – At 2 paise per unit.

(exemption being 1 paise per unit) 2. for the next 25000 units – At 1 ½ paise per unit

(Exemption being 1 ½ paise per unit) But if the rate of duty is increased for 3 paise to 5 paise per unit assessment is

to be made at the following rates. 1. For the first 15000 units – At 4 paise per unit. 2. For the next 25000 units – At 3 ½ paise per unit. It should also be seen whether the return submitted by the assessee is

supported by a statement showing the month wise consumption of energy by each industrial concern exclusively for industrial production during the half year covered by the return. If no such statement is furnished by an assessee, the basis on which exemption for industrial consumption was allowed should be looked into.

(c) It should be seen whether penal duty has been demanded and realized

for an offence committed by an assessee under section 8 of the Act.

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5.2 AUDIT OF REFUNDS It should be seen – (a) Whether application for refund was made by the assessee within the

prescribed period. (b) Whether the amount to be refunded has been worked out correctly and

necessary entries have been made in the Register of refund under attestation by the assessing authority.

(c) Refund has been sanctioned by the competent authority.

5.3 FEES

Whether various fees have been realized at the appropriate rates. 5.4 MISCELLANEOUS CHECK.

It should be seen whether – (a) all relevant registers and records have been kept up-to-date and are

complete in all respects. (b) monthly reconciliation of the entries in the Daily Collection Register with

the advice list received from the Treasury/Sub-Treasury has been made and discrepancies, if any, taken up with the Treasury/Sub-Treasury Officer.

(c) any duty or penalty remaining unpaid by an assessee has been recovered by

deduction from amounts payable by the State Government to the said assessee or recovery certificate have been issued for recovering the amount as arrear land revenues.

(d) whether guidelines, if any, issued by the department to check evasion of

taxes have duly observed by the Inspectors/Assessing Authorities. (e) It should be particularly seen that whether the orders of exemption,

refunds, remission etc. of taxes have been issued by the competent authority and whether the orders conform to the provisions of the Acts/Rules. 5.5 EXTENT OF AUDIT.

Records and Registers to be checked

Quantum of audit checks for each category of registers and cases

(a) Returns file by assesses Returns submitted by the Board, a licensees or a person generating energy for a year may be check in details with reference to units generated, tax levied and assessed. The entries relating to the payment of tax in respect of these returns may be traced to the

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Demand Collection Register and the challan files/assessment files.

(b) Challans Challans for few selected month in a year may be traced to challan files and Demand, Collection Register. In additions remittances through these challans should be verified with reference to treasury records.

(c) Refunds 100 percent (d) Appeal cases General Review (e) Exemptions granted under the Act All the cases to be checked in the offices of

the sanctioning authority and tax authority. 5.6 AUDIT OF INTERNAL CONTROLS

(a) Whether the internal procedures adequately secure correct and regular accounting of demands, collection and refunds, that no amounts due to Government remain outstanding in its books without sufficient reason and that the claims are persued with due diligence and not abandoned or reduced accept with adequate justification and with proper authority.

(b) The most important function of Audit in relation to assessments and refunds is to satisfy itself, by such test checks as it may consider necessary, that the internal procedures adequately provide for and actually ensure: -

(j) the collection and utilisation of data necessary for the computation of the

demand or refund under laws, (ii) the prompt raising of demands on taxpayers in the manner required by law, (iii) that the computation and realization of various taxes etc. are in accordance

with the applicable tax laws, (iv) the regular accounting of demands, collection and refunds, (v) that proper arrangements are in place to safeguard against negligence or

omission to levy or collect taxes or to authorize refunds, (vi) that adequate control and monitoring mechanism have been devised to

prevent loss or leakage of revenue, (vii) that there has not been any loss or leakage of revenue on account of lacuna

or loopholes in the rules framed for the purpose on account of avoidable delay in the issue of the necessary notification and orders,

(viii) that the machinery for detection of cases of evasion is adequate, (ix) that double refunds, fraudulent or forged refund orders or other losses of

revenue through fraud, default or errors are promptly brought to light and investigated,

(x) that cases pending in court of law or before appellate authorities have been pursued adequately and appeal, whenever justified or considered necessary, have been field with the period of limitation and

(xi) that the estimates of revenue have been realized at the end of the financial year.

[C&A.G (M.S.O.) Audit]

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APPENDIX

Important Notification/Circulars/Order E.T.C.

Exemption to Industrial concerns, agriculture, horticultural purpose.

1) Notification No. FTX 32/14/80 dt. 26.4.1965 2) Notification No. FTX. 197/84/22 dt. 23.3.1985 3) Notification No. FTX. 120/65/15 dt. 19.9.1966 4) Notification No. FTX. 120/65/16 dt. 19.9.1966 5) Notification No. FTX. 75/2006/3 dt. 10.11.2006

DELEGATION OF POWER

1) Notification No. FTX. 32/64 dt. 12.11.1965 2) Notification No. FTX. 160/73/307 dt. 6.1.1999.

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NOTIFICATIONS UNDER THE ASSAM ELECTRICITY DUTY ACT, 1964

NOTIFICATION DATED 26TH APRIL, 1965

No. FTX. 32/64/80 – In exercise of the powers conferred by section 12 of the Assam Electricity Duty Act, 1964 (Assam Act XXX of 1964), the Governor of Assam is pleased in public interest to exempt industrial concerns in Assam from payment of the electricity duty of the extent specified blow, when such energy is exclusively consumed for industrial production. This shall be deemed to have had effect as from 1.4.1965. 1. For the first 15,000 units - One paise per unit 2. For the next 25,000 units - One and half paise per 3. For the rest of the units - Full exemption

NOTIFICATION DATED 23RD MARCH, 1985 [The Assam Gazette, Part IIA dated 3.4.1985]

No. FTX. 197/84/22 – In exercise of the powers conferred by section 12 of the Assam Electricity Duty Act, 1964 (Assam Act XXX of 1964), the Governor of Assam is pleased in public interest to exempt industrial concerns in Assam from payment of the electricity duty of the extent specified below with effect from 1.10.1984 when such energy is exclusively consumed for industrial production. 1. For the first 15,000 units - One paise per unit 2. For the next 25,000 units - One and half paise per unit 3. For the rest of the units - Three paise per unit. This cancels Government Notification No. FTX 32/64/80, dated 26.4.1965 with effect from 1.10.1948.

NOTIFICATION DATED 12th NOVEMBER, 1965 No. FTX. 32/64 – In exercise of the powers conferred by sub-section (1) of section 7 of the Assam Electricity Duty Act, 1964 (Assam Act XXX of 1964), the Governor of Assam is pleased to appoint the Commissioner of Taxes, Assistant Commissioners of Taxes, Assistant Commissioner of Taxes, Superintendent of Taxes and Inspectors of Taxes appointed under section 8 of the Assam Sales Tax Act, 1947 (Act XVII of 1947) as the Inspecting Officers under this Act.

NOTIFICATION DATED 19th SEPTEMBER, 1966 [Assam Gazette dated 29.9.1966 Part II A]

No. FTX. 120/65/15 – In exercise of the powers conferred by section 12 of the Assam Electricity Duty Act, 1964 (Assam Act XXX of 1964), the Governor of Assam is pleased notify that no electricity duty is leviable on the units of energy used for agriculture or horticultural purpose.

This shall be deemed to have had effect as from 1.4.1966.

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NOTIFICATION DATED 19th SEPTEMBER, 1966 [Assam Gazette dated 89.9.1976 Part II A]

No. FTX. 120/65/16 – In exercise of the powers conferred by section 12 of the Assam Electricity Duty Act, 1964 (Assam Act XXX of 1964), the Governor of Assam is pleased notify that no electricity duty is leviable on the units of energy used by the ‘Vessels sea-going or inland’.

This shall be deemed to have had effect as from 1.4.1965 COPY OF GOVERNMENT LETTER NO. PEL. 31/64/83 DATED 19.5.1965 1 am directed to say the under sanction 5 of the Assam Electricity Duty Act, 1964, the Governor of Assam is pleased to sanction the recovery of Electricity duty by the licensees of electrical undertakings from any person to whom the energy supplied which is to be paid by the licensees under section 4 of the Assam Electricity Duty Act, 1964.

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GOVERNMENT OF ASSAM

FINANCE (TAXATION) DEPARTMENT OFFICE MEMORANDUM

No. FIX. 160/73/307 Dated, the 6th January, 1999 The Assam Electricity Duty Act, 1964 provides for levy of duty on the sale or consumption of electrical energy in he State of Assam. As per provision of Section 3 of the said Act, the Electricity Duty shall be collected from the consumer and paid to the State Government by the Assam State Electricity Board. But the Assam State Electricity Board has not been paying any Electricity Duty after collecting the same from the consumers for the last several years due to financial constraints. However, on consideration of the recommendation vide para 3.2.3 of the Enquiry Committee of the Assam Legislative Assembly on Assam State Electricity Board and also considering the present financial condition of the Assam State Electricity Board, the Government of Assam has decided that the Electricity Duty realized by the Assam State Electricity Board in a financial year will have to be deposited/initially into Government account and all the Electricity Duty deposited as such during the relevant financial year under the Assam Electricity Duty Act, 1964 will be paid back to Assam State Electricity Boards as grant-in-aid for the same year. This shall be effective from 01.04.99. All arrears due from Assam State Electricity Board as on 01.04.99 will also be eligible for grant-in-aid in the above manner.

NOTIFICATION

The 18th February, 2004

No. FTX. 203/2003/5 – In exercise of the powers conferred by sub-section (1) of Section 13 of the Assam Electricity Duty Act, 1964 (Assam Act No. XXX of 1964), the Governor of Assam is hereby pleased to make the following rules further to amend the Assam Electricity Duty Rules, 1964, hereinafter referred to as the principal Rules, namely:- The Assam Electricity Duty (Amendment) Rules, 2004. Short title and 1. (1) These rules may be called the Assam Electricity Duty (Amendment) Rules, 2004. commencement.

(2) They shall come into force on the date of their publication in the official Gazette.

Amendment 2. In the principal Rules, in rule 2 in clause (6) - of Rule 2. (i) after sub-clause (i), the following new sub-clause (ia) shall be inserted, namely:-

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“(i) the Additional Commissioner of Taxes for the purpose of Rules 7, 8 and 9”.

(ii) for sub-clause (iv) the following shall be substituted, namely:-

“(iv) the Deputy Commissioner of Taxes (Appeals) for the purpose of rule 11”.

(iii) for sub-clause (v) the following shall be substituted, namely:-

“(v) the Assistant Commissioner of Taxes, the assessing authority for the purpose of section 8 (1) of the Act and rules 3,4,5,6,7,8,9,13 and 14”.

(iv) sub-clause (vii) shall be deleted.

H.S. DAS, Commissioner & Secretary to the Government of Assam,

Finance Department.

NOTIFICATION

Dated the 4th November, 2006

No. FTX. 75/2006/3 – In exercise of the powers conferred by section 12 of Section of the Assam Electricity Duty Act, 1964 (Assam Act No. XXX of 1964), the Governor of Assam having considered it necessary in the public interest so to do, hereby exempts the person shown in column (1) of the Table from the liability to pay electricity duty subject to the restrictions and conditions specified in column (2) of the said table.

Table

Person Restrictions and conditions subject to which exemption is granted

(1) (3) Person generating electricity through generator sets with capacity upto 5 KVA

When energy is generated by person of such household sector for his own use of consumption and when such energy is exclusively used for his own domestic purpose only.

This notification shall come into force on the date of its publication in the Official Gazette.

H.S. DAS, Commissioner & Secretary to the Government of

Assam, Finance (Taxation) Department, Dispur