Cess, Fund, Energy Development Cess, Urban Development Cess, Cess on
Land and Buildings, Vacant Land, Agricultural Land

[NO 1 OF 1982]
[Received the assent of the President on the 16th December, 1981: assent first published
in the “Madhya Pradesh Gazette (Extra-ordinary)” dated the12th January1982].
An Act to provide for levy of certain cesses.
Be it enacted by the Madhya Pradesh Legislature in the Thirty-second Year of the
Republic of India as follows:-

  1. Short title, extent and commencement.-(1) This Act may be called the Madhya
    Pradesh Upkar Adhiniyam, 1981.
    (2) It extends to the whole of the State of Madhya Pradesh.
    (3) It shall come into force on such date as the State Government may, by notification,
    2appoint 3[and different dates may be appointed for different provision of this Act:
    Provided that the provisions of Part III shall come into force with effect from the 1st
    October, 1982 and any notification issued bringing that part into force from any earlier date
    shall be and shall always be deemed never to have been issued.
  2. Definitions.- In this part unless there is anything repugnant in the subject or context,
  3. The State Government brought into force Ord. 9 of 1983 from 1.12.1983 vide notfn.
    Published in M.P. Rajpatra, (Asadharan). Dated 23.11.1983, p.3081.
  4. Date 1.2.1982 appointed for parts I, II and III, vide Notfn. Published in M.P. Rajpatra,
    (Asadharan), dated 25.2.1982, p.270. But enforcement of part III from 1.3.1982 is
    cancelled and fixed at 1.10.1982 vide MP Act 35 of 1982..
    (a) “cess” means the energy development cess levied under section 3;
    (b) “Fund” means the energy development fund referred to in sub-section (2) of section 3;
    (c) words and expressions used but not defined in this part and defined in the Madhya
    Pradesh Electricity Duty Act.1949 (X of 1949), shall have the meaning respectively
    assigned to them in that Act.
    3.Levy of energy development cess.-(1) Subject to the exceptions specified in section 4,
    every distributor of electrical energy shall pay to the State Government at the prescribed
    time and in the prescribed manner an energy development cess at the rate of one paisa
    per unit on the total units of electrical energy sold or supplied to a consumer or consumed
    by himself or his employees during any month:
    Provided that no cess shall be payable in respect of electric energy-1[(i) (a) sold or supplied to the Government of India for consumption by that Government;
    (b) sold or supplied to the Government of India or a railway company for consumption in
    the Construction, maintenance or operation of any railway administered by the
    Government of India];
    2[(ii) sold or supplied in bulk to a Rural Electric Co-operative Society registered under the
    Madhya Pradesh Co-operative Societies.
    Explanation.- For the purposes of this sub-section “month” means such period as may be
    (2) The proceeds of the cess under sub-section (1) shall first be credited to the
    Consolidated Fund of the State and the State Government may, at the commencement of
    each financial year, after due appropriation has been made by law, withdraw from the
    Consolidated Fund of the State all amount equivalent to the proceeds of cess realized by
    the State Government in the preceding financial year and shall place it to the credit of a
    separate fund to he called the Electrical Development Fund and such credit to the said
    fund shall he an expenditure charged on the Consolidated Fund of the State Government
    of Madhya Pradesh.
    (3) The amount in the credit of the fund shall of the discretion of the State Government
    utilized for-
    (a) research and development in the field of energy including electrical energy as we11 as
    other conventional and non-conventional sources of energy;
    (b) improving the efficiency of generation, transmission, distribution and utilization of
    energy including reduction of losses In transmission and distribution;
  5. Subs. by M.P.24 of 1984, w.e.f. 1.3.1982.
  6. Omitted by M.P. 47 of 1984 and inserted by M.P. 28 of 1985, w.e.f. 1.10.1984.
    (c) research in design, construction, maintenance, operation, and materials of the
    equipment used in the field of energy with a view to achieve optimum efficiency, continuity
    and safety;
    (d) survey of energy sources including non-perennial sources to alleviate energy shortage;
    (e) energy conservation programmers;
    (f) extending such facilities and services to the consumers as may be deemed necessary;.
    (g) creation of a laboratory and testing facilities for testing of electrical appliances and
    equipments and other equipments used in the field of energy;
    (h) programmers of training conducive to achieve any of the above objectives;
    (i) transfer of technology in the field of energy; and
    1[(ii) any purpose connected with safety of electrical installations: and]
    (j) any other purposes connected with improvement of generation, transmission,
    distribution orutilization of the electrical and other forms of energy, as the State Government may, by
    notification, specify.
    Explanation.- In this sub-section “energy” includes all conventional and non-conventional
    forms of energy.
    (4) If any question arises as to whether the purpose for which the fund is being utilized is a
    purpose falling under sub-section (3) or not, the decision of the State Government thereon
    shall be final and conclusive.
  7. Madhya Pradesh Act No. X of 1949 and rules made thereunder to apply.- The
    provisions of sections 4 to 9 (both inclusive) of the Madhya Pradesh Electricity Duty Act,
    1949 (X of 1949) and the rules made thereunder shall mutatis mutandis apply to cess
    under this Act as they apply to levy of duty on sale or consumption of electrical energy
    under that Act and for that purpose reference to “duty” or “electricity duty” in the said Act
    or the rules made thereunder, as the case may be, shall be construed as reference to

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