Electricity duty levy on power challenged in HC
CHANDIGARH

: Six prominent business houses have approached the Punjab and Haryana High Court, seeking quashing of the Punjab government orders of levying electricity duty on the power they sold or intended to sell to other states. They gen- erated electricity in their inde- pendent power plants A division bench compris- ing Chief Justice Mukul Mudgal and Justice Jasbir Singh has issued a notice to the state of Punjab and other respondents for September 30.
The petitioners included Rana Sugar Limited, Ambuja Cement Limited, A.B. Sugar Limited, Wahid Sandhar Limited, Malwa Powers and Indian Acrylics Limited.

The petitioner stated that the Punjab government recent- ly passed an order vide a noti- fication issued on January 28, through which an electricity duty of 5 per cent has been imposed on electricity traded outside the state of Punjab. As per the orders, the duty would be collected at a rate at which the power purchase agreement was signed by the seller, less subsidy received from the state.

However, the orders exempt- ed the duty on power sold to the Punjab State Electricity Board (now Powercom), who could sell it further. Terming the orders as illegal and unjus- tified, the petitioners have sought quashing of the orders.