HP High Court restrains State, HPSEBL from charging over 16.5% Electricity duty from Industrial Consumers
Photo used for indicative purpose only. Source: Internet
Shimla, Nov 10,
In a interim relief to industrial consumers, the Himachal Pradesh High Court has restrained the State Government and the Himachal Pradesh State Electricity Board Limited (HPSEBL) from collecting electricity duty beyond 16.5 percent from large and medium industries.
The order came from a Division Bench comprising Justice Vivek Singh Thakur and Justice Romesh Verma while hearing a plea filed by M/s Himachal Stone Crushing Company challenging successive hikes in electricity duty imposed by the State.
The petitioner argued that while the electricity duty rate for large and medium industrial consumers had been fixed at 11 percent through a notification dated July 20, 2017, the same was increased to 25 percent in 2023 and further to 37.5 percent in January 2024 — a move it claimed violated Section 11(2) of the Himachal Pradesh Electricity (Duty) Act, 2009.
The Bench noted that “since admittedly the increase from 11% to 25% and further to 37.50% prima facie appears to be contrary to sub-section (2) of Section 11 of the Act, the respondents are restrained from collecting electricity duty beyond 16.5% in respect of medium industries and large industries.”
The Court observed that under Section 11(2) of the 2009 Act, the State Government may revise the rates of electricity duty by notification, “without exceeding 50% at any one time of the rates earlier specified.” The petitioner contended that the multiple enhancements far exceeded the statutory ceiling prescribed.
The matter will next be heard on November 17, 2025, along with a connected case (CWP No. 15413 of 2024).
The Bench also clarified that the order shall remain subject to alteration, vacation, or modification upon further motion.
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