The Odisha Electricity (Duty) Act, 1961

Names the Act, extends it to the whole of Odisha, and leaves the commencement date to be notified by the State Government (it actually came into force on 16 October 1961).

Defines key terms used throughout the Act:

• Appointed authority — the officer/authority designated by a licensee, undertaking, or the State Government to administer duty collection.
• Auxiliary consumption — energy used internally by a generating station's plant/machinery and switchyard (excluding housing colonies and construction work).
• Consumer — any person supplied electricity for their own use by a licensee, the Government, or another supplier under the Electricity Act, 2003, including self-generators.
• Energy — electrical energy.
• Energy charge — tariff-based charges approved by the Odisha Electricity Regulatory Commission.
• Licensee — as defined under the Electricity Act, 2003.
• Unit — 1 kilowatt-hour.
• Undefined terms — fall back to definitions in the Indian Electricity Act, 1910.

The core charging section. Establishes:

• A duty up to 15% of energy charges on consumers receiving free / open-access / specially-agreed supply (excluding self-consuming licensees and small self-generators).
• A duty up to ₹2 per unit for licensees consuming in their own premises and other self-generating persons.
• Different rates may apply to different consumer categories.
• For billing based on minimum charges, defective meters, or unmetered supply, duty is calculated on the same units used for energy-charge billing.
• Where records/returns are missing or meters defective, the Inspecting Authority can make a best-judgment assessment after a hearing.
• Notifications must be laid before the Legislative Assembly for 14 days.
• Exemption: no duty on energy from plants ≤50 KVA capacity.
• Government may exempt industries by notification.

Simply establishes that the duty is payable by, and recoverable from, the consumer (or other liable person) in the manner set out in later sections.

Specifies who collects and remits the duty:

• Licensee / person supplying energy collects from the consumer and pays the State.
• Self-generators pay it themselves.
• A licensee isn't liable for duty on amounts it genuinely couldn't recover.
• Late payment attracts 18% per annum interest.
• Duty and interest are a first charge on amounts recoverable by the licensee, and a debt owed to the State.
• Partial consumer payments are apportioned proportionately toward duty/interest.
• Licensees may use Electricity Act, 2003 recovery powers (e.g. disconnection) to collect unpaid duty.

• If a business/property is transferred (sale, lease, license, hire, etc.), both transferor and transferee are jointly and severally liable for unpaid duty.
• A disconnected unit that is later transferred cannot be reconnected until arrears are cleared.
• Liquidators/receivers inherit duty liability; multiple liquidators are jointly liable.
• On winding up, directors (except government-nominated ones) can be held jointly liable for unrecovered duty unless they prove the default wasn't due to their willful neglect or misfeasance.

Licensees, appointed authorities, and self-generators must maintain prescribed records showing:

• Units generated/received and supplied/consumed
• Duty payable, recovered, and paid
• Energy charges billed by consumer category
• Interest paid
• Other prescribed particulars

They must also submit periodic returns in the prescribed form.

Chief Electrical Inspectors and Electrical Inspectors appointed under the Electricity Act, 2003 (minimum rank: Chief Engineer / Executive Engineer respectively) serve as the inspecting officers under this Act, and are deemed public servants under IPC Section 21.

• Chief Electrical Inspector / Electrical Inspector / Deputy Electrical Inspector decides disputes on duty liability or exemption.
• Exemption disputes under policy incentives go to the Secretary, Energy Department (final decision).
• Appeal process: aggrieved parties can appeal within 1 month, up the hierarchy (Deputy → Electrical Inspector → Chief Electrical Inspector → Principal Chief Electrical Inspector), with a mandatory 50% deposit of the disputed amount.
• A further appeal lies to a State-notified authority within 3 months, whose decision is final.

Inspectors may:

• Demand inspection of relevant books/records
• Enter and search premises to verify records, meter readings/testing, and duty-related particulars
• Exercise other powers necessary under the Act

Searches must follow the Code of Criminal Procedure, 1898.

Unpaid duty/interest is recoverable as a land revenue arrear, at the State's discretion either from the consumer or the licensee (per Section 5's first proviso), or from other liable persons for self-generated energy.

Allows the Government to issue a garnishee-style notice to any third party holding money due to a defaulter, directing payment into the Government Treasury:

• Notices can be amended, revoked, or extended.
• Compliant payers are discharged of liability to the defaulter to that extent.
• Non-compliant payers become personally liable to the Government.
• Third parties can prove they owe nothing to escape this liability.
• Unpaid amounts under this section are recoverable like Section 10 arrears — without prejudice to normal Section 10 recovery.

• Sub-section (1): Failure to maintain records/submit returns, obstructing inspectors, or contravening rules is an offence triable by a First Class Magistrate — punishable by up to 6 months imprisonment, a fine up to ₹1,000, or both.
• Sub-section (2): Evasion of duty (via false records, false returns, concealment, etc.) by self-generators or free/open-access suppliers attracts a fine of up to ₹1,000/day of delay (capped at ₹1 lakh), in addition to the duty owed — subject to a hearing.

The State Government may make rules to implement the Act, including on:

• Duty calculation methods (including marginal adjustments)
• Collection/payment mechanics for licensees and appointed authorities
• Timing/manner of consumer payments
• Any other necessary matters

Clarifies the Act does not tax electricity consumed/sold by/to the Government of India, or used in railway construction, maintenance, or operations by the Government of India.

A general "difficulty removal" clause empowering the State Government to take any action (consistent with the Act/rules) necessary to resolve implementation difficulties.