THE JIYAJEERAO COTTON MILLS LTD. vs STATE OF MADHYA PRADESH

The Supreme Court held that under the Central Provinces and Berar Electricity Duty Act, 1949, a producer consuming electricity generated by itself is classified as a consumer and is therefore liable to pay duty as prescribed under Section 3 of the Act. The Court ruled that the levy of duty on electricity consumption does not constitute an excise duty under Entry 84 of List I of the Constitution, as excise duties pertain to production rather than consumption. The appeal was dismissed, affirming the High Court's decision that the levy was valid and within the legislative competence of the State Legislature under Entry 53 of List II.