Electricity duty on self generation: SC dismisses review pleas of Punjab govt
A three-judge bench headed by Justice Munib Akhtar and comprising Justice Ayesha A Malik and Justice Aqeel Ahmed Abbasi, heard review petitions of the Punjab government against the SC's decision. The provincial government had filed a total of 46 review petitions.
Mian Mahmood Rashid appeared on behalf of most of the textile mills.
At the onset of the proceedings, the additional advocate general (AAG), Punjab contended that in the appeals the issue of the applicability of Article 157 of the Constitution was required to be decided.
However, the bench referred paragraph 3 of the judgment, wherein, it was categorically observed that the issue of constitutionality of the levy in terms of Article 157 was not pursued by either side and therefore these appeals fall to be decided solely on the ground whether, in the facts and circumstances of the case, Sec 13 of the Punjab Finance Act, 1964 was applicable in terms as sought to be imposed on the respondents in terms of the 2001 notification, whereby, this levy on self-generation and self-use of electricity was imposed on the mills and other commercial establishments including hospitals, etc.
The bench members repeatedly asked the AAG to point out any paragraph of the judgment sought to be reviewed, wherein, mistake or error floating on the surface of the judgment. However, the AAG was unable to point out any error or mistake apparent on the face of the record.
The bench; therefore, dismissed all the review petitions reinforcing that no electricity duty could be realised on the self-generation of electricity from the generators of 500kW and above.
The court in its judgment dated 29-02-24 had ruled that the mills and others, which used private generators of more than 500kW capacity to generate electricity for self-use, are not liable to pay the electricity duty on their own self use of the power/ energy generated by their generators of more than 500 kW capacity.
The Punjab government on 25-08-2001 issued Punjab Finance Ordinance, 2001 to make changes in Section 13 of the Act that resulted in the application of the levy known as the electricity duty on the respondents.
This levy was challenged in the Lahore High Court (LHC) by writ petitions on various grounds. The constitutionality of Section 13 was also brought into play. The provincial government took its stand on constitutionality in terms of Article 157 (2) (b) of the Constitution.The single bench of the LHC had dismissed the petitions. Consequently, the intra-court appeals were filed before a Division Bench of the High Court, which reversed the judgment. Being aggrieved by this decision, the Punjab provincial government approached the apex court. It contended that up to 2001 the respondents may have been entitled to the benefit of the 1985 notification but thereafter the position changed fundamentally on account of the new definition of 'licensee' substituted by the 2001 Ordinance, which stated 'any person generating the electric power from a generator having the capacity of more than five hundred kilowatt for self-use they statutorily became licensees.'
Copyright Business Recorder, 2025
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