TMI Blog1989 (1) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... It has also a plant to manufacture Caustic Soda which is required to be used for the production of paper. Electricity is necessary for the purpose of running the factories. For that purpose, petitioner has a power plant to generate electricity. It also gets supplyof electricity from the Orissa State Electricity Board (hereinafter referred to as 'the Board') on payment of charges. 3. After the Act was amended in 1978, providing for levy of duty on electricity by including Item 11E to the first schedule, the Board demanded additional amount from the petitioner, which it was to pay under the Act. Petitioner approached this court and obtained an interim stay which fact was intimated to the Board. Thereafter, in the year 1980, the Board amende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This entry makes it clear that Legislation can be made for imposition of duties of excise on goods manufactured or produced in India. Under the authority of this entry the Act was enacted. Section 3 of the Act authorises levy of duty of excise on all excisable goods. The term 'excisable goods' has been defined in Section 2(d) of the Act to mean 'goods specified in the first' schedule as being subject to duty of excise. Electricity has been specified in the first schedule after amendment and accordingly, is excisable goods. On a plain reading of the various provisions there can be no doubt that Electricity is an excisable goods liable to be taxed under the Act. 5. Mr. Mohanti submitted that Electricity is not goods and accordingly by Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 378 in the sense of amending it or in any way altering the language used in it. Section 378, read by itself even after the enactment of Section 39 would not include a theft of electricity for electricity is not considered 'to be movable property..............." It is true that for the purpose of an offence. Supreme Court expressed that electricity is not considered to be movable property. In this case, however, there was no controversy in that regard to be resolved. Controversy was raised before the Supreme Court in a decision reported in The Commissioner of Sales-tax, Madhya Pradesh, Indore v. Madhya Pradesh Electricity Board, Jabalpur (A.I.R. 1970 S.C. 732). While considering whether sales-tax can be levied under the Madhya Pradesh Gene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and 'goods' has been defined in the Constitution where in both the Entries levy of tax on goods is dealt with 'goods' having an inclusive definition in the Constitution is to be given a wide meaning. Electricity has a value, which has utility and the same is transferable also. Therefore, taking broad meaning, there is no escape from the conclusion that electricity is goods coming within the meaning of the word as defined in Article 366(12) of the Constitution. It has been laid down in the decision reported in Jiyajeerao Cotton Mills Ltd., Birlanagar, Gwalior v. State of Madhya Pradesh (A.I.R. 1963 S.C. 414) that Legislative entries in the Constitution are to be interpreted in a broad way so as to give the widest power to the Legislature a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent being aware that in the Rules made under the Central Sales-tax Act or in the definition of 'industrial concern' in the State Financial Corporation Act 'manufacture' or 'production' has been used in respect of goods it has included electricity as goods for levy of tax. 9. In conclusion, (i) electricity is goods as has been held in The Commissioner of Sales-tax's case :(supra) (ii) generation of electricity for the purpose of the Act is manufacture or production of electricity, since the term 'manufacture' or 'production' is to be given a wide meaning, (iii) inclusion of tax leviable under the Act on the Board has rightly been included in the tariff as amended in the year 1980. 10. Before concluding, I cannot but take note that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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