[(1) Subject to the provisions hereinafter contained, there shall be levied for and paid to the State Government on the energy -
(a) sold to a consumer by a licensee, the Board, the State Government or the Central Government ; or
(b) consumed by a licensee or the Board in or upon premises used for commercial or residential purposes, or in or upon any other premises except in the construction, maintenance or operation of his or its works ; or
(c) consumed by any other person from his own source of generation, -
a duty (hereinafter referred to as electricity duty), determined at such rate or rates as may from time to time be fixed by the State Government by notification in the Gazette, and such rate may be fixed either as a specified percentage of the rate charged or as a specified sum per unit :
[Provided that such notification issued after October 1, 1984 but not later than March 31, 1985 may be made effective on or from a prior date not earlier than October 1, 1984.]
(2) In respect of clauses (a) and (b) of sub-section (1), electricity duty shall not exceed [fifty per cent] of the rate charged :
[Provided that in the case of one-part tariff, where the rate charged is based on units of consumption, the electricity duty shall not be less than one paisa per unit or more than [nine paise] per unit.
Explanation- For the purposes of calculation of electricity duty as aforesaid, energy consumed by a licensee or the Board or supplied free of charge or at concessional rates to his partners, directors, members, officers or servants, shall be deemed to be energy sold to consumers by the licensee or the Board, as the case may be, at the rates applicable to other consumers of the same category.
(3) In respect of clause (a) of sub-section (1), the electricity duty shall not be less than one paisa or more than six paise per unit.
(4) The State Government may, in the public interest, having regard to the prevailing charges for supply of energy in any area, the generation capacity of any plant, the need to promote industrial production generally or any specified class thereof and other relevant factors, either fix different rates of electricity duty in relation to different classes of consumption of energy or allow any exemption from payment thereof.
(5) No electricity duty shall be levied on -
(a) energy consumed by the Central Government or sold to the Central Government for consumption by that Government ; or
(b) [ * * * * *] ;
(c) energy consumed in the construction, maintenance or operation of any railway by the Central Government or sold to that Government for consumption in the construction, maintenance or operation of any railway :
(d) by a cultivator in agricultural operations carried on in or near his fields such as the pumping of water for irrigation, crushing, milling or thrashing of the produce of those fields or chaff cutting.];
[(e) Energy consumed in light upon supplies made under the Janta Service Connection Scheme.
Explanation :-For the purposes of clause (e) "Janta Service Connection Scheme" means a scheme approved by the State Electricity Board for supplying Energy to Harijans, landless labourers, farmers (holding land not exceeding one acre), members of armed forces (whether serving or retired), war widows and other weaker sections in districts notified by the State Government.]