Levy of tax on ‘minimum tariff’ for electricity which is not consumed is unconstitutional

Sona Synthetics Vs State of Karnataka (Karnataka High Court) Karnataka High Court held that levy of tax on electricity charges which includes the ‘minimum tariff’ are unconstitutional as the State has no legislative competence to levy tax on ‘minimum tariff’ for the electricity which is not consumed. Accordingly, section 3(1) of Karnataka Electricity (Taxation on Consumption) Act, 1959 declared unconstitutional. Facts- The questions that arose in these two writ petitions are whether the supply of electricity to ensure minimum demand, without actual consumption of electricity, amounts t...