Section 3: Electricity duty on energy consumed.-

There shall be levied for, and paid to, the State Government on the energy consumed by a consumer or by a person other than a supplier generating energy for his own use or consumption a duty 1 (hereinafter referred to as the electricity duty) computed at such rate xx as may be fixed by the State Government from time to time by notification in the Official Gazette: Provided that (1) in respect of consumption of energy under a temporary connection obtained by a consumer from the supplier for a period not exceeding such number of days, for such purpose and 2 exceeding such units as may be prescribed, the duty may be computed at a rate xx as may be fixed by the State Government form time to time by a notification in the Official Gazette; 3 (1A) The total of the duty so levied and the net rate charged per unit shall not exceed the rate as may be notified by the State Government from time to time by a notification in the Official Gazette; and 4 (IB) where energy is consumed by a cultivator in agricultural operations under a non metered supply, the electricity duty shall be levied and charged at a rate as may be notified by the State Government from time to time. (2) the electricity duty shall not be levied on the energy consumed (a) by the Government of India; (b) in the construction, maintenance or operation of any Railway by the Government of India; (bb) Where the energy is generated at a voltage not exceeding 100 volts; (c) omitted by Act No. 8 of 1982 w.e.f. 3.3.1982. (d) by the following classes of institutions, namely: (i) hospitals or dispensaries, which are not maintained for private gain, (ii) recognized educational institutions, (iii) place of public worship, subject to the condition that the exemption under this sub-clause shall not be applicable to energy consumed in buildings or part of buildings, used for commercial or residential purposes. 5 (3) where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette, exempt fully or partially, whether prospectively or retrospectively, from payment of electricity duty payable on energy consumed by any consumer or class of consumers, without any condition or with such condition as may be specified in the notification.