STATE OF MYSORE vs WEST COAST PAPERS MILLS LTD. & ANR.

The Supreme Court held that under the Mysore Electricity (Taxation on Consumption) Act, 1959, electricity tax cannot be levied on electrical energy lost during transmission, as such energy is not consumed. The Court clarified that the tax is applicable only on the energy that reaches the point of consumption. The appeal was allowed regarding the respondent's liability to pay tax on energy used for generating further electrical energy, affirming that such energy does not constitute taxable consumption under the Act.