3. Levy of a duty in certain sales of electrical energy.
(1)Save as otherwise provided in sub-section (2), every licensee in the [State of [Telangana] [Substituted 'State of Andhra Pradesh' for the 'Andhra Area of the State of Andhra Pradesh' by Act No.8 of 1968.]] shall pay every month to the [State] [The word 'State' was substituted for the word 'Province' by the Adaptation Order, 1950.] Government in the prescribed manner, a duty calculated at the rate of [six paise per unit of energy] [Substituted for 'four paise per unit of energy' by Act No.1 of 1994.], on and in respect of all sales of energy, [except sales to the Government of India for consumption by that Government or sales to the Government of India or a railway company operating any railway for consumption in the construction, maintenance or operation of that railway] [Substituted by the Andhra (Amendment) Order, 1950 for the words and brackets '(except sales to the Central Government for consumption by that Government or to the Federal Railway)' which were inserted by section 2 and deemed to have formed part of the main Act from its commencement by section 3 of, and the second Schedule to Act VII of 1948.] effected by the licensee during the previous month at a price of more than [twelve paise per unit] [Substituted for 'two annas' by Act No.8 of 1968.] [and] [Added by section 3 (i) of Madras Act VIII of 1945 re-enacted permanently by section 2 of, and the First Schedule to Act VII of 1948.] on and in respect of all energy which was consumed by the licensee during the previous month for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking and which, if sold to a private consumer under like conditions, would have fetched a price of more than [twelve paise per unit] [Substituted for 'two annas' by Act No.8 of 1968.].[Provided that no duty under this sub-section shall be payable on and in respect of sale of energy effected,-(a)by the [Telangana] State Electricity Board to any other licensee;(b)by the National Thermal Power Corporation to the [Telangana] [Substituted by G.O.Ms.No.16, Energy (Budget) Department, dated 31.05.2016.] State Electricity Board.](2)[ A licensee shall be exempt from duty under subsection (1) in any month if in the previous month the total sales of energy effected by him at whatever price together with the energy consumed by him for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking, did not exceed 16,666 units:Provided that if at the end of any financial year, it is found that in such year the total sales of energy effected by the licensee at whatever price together with the energy consumed by him for purposes other than those connected with the construction, maintenance and operation of his electrical undertaking, were not less than 200,000 units, the licensee shall pay the duty in respect of any month or months comprised in such year in which the total of the sales and of the consumption as aforesaid did not exceed 16,666 units.] [Substituted for original sub-section (2) by section 3 (ii) of Act VII of 1948.](3)Where a licensee holds more than one licence, duty shall be calculated and levied under this section separately in respect of each licence.(4)[ Where a licensee who is liable to pay duty under this section sells energy to the [Government of India for consumption by that Government or to a railway company operating any railway for consumption in the construction, maintenance or operation of that railway] [This sub-section and explanation were added by section 2 of Madras Act II of 1943 re-enacted permanently with specified modifications by section 3 of, and the second schedule to Act VII of 1948. This amendment shall be deemed to have formed part of the principal Act from its commencement.], the price charged on such sales shall be less by the amount of the duty than the price charged to other consumers of a substantial quantity of energy, provided the price last mentioned is more than [twelve paise] [Substituted for 'two annas' by Act No.8 of 1968.] per unit.In this sub-section, the expression 'price charged to other consumers' shall include the duty, if any, recoverable from the consumer under sub-section (1) of section 7.[Explanation. [Substituted for the original Explanation by the Andhra (Amendment) Order, 1950.] - The expression "railway" in this section and in section 9 shall have the meaning assigned to it in clause (20) of article 366 of the Constitution] [Added by Act No.10 of 1985.].]
