State Cannot Levy Tax On Electricity Consumed By Central Govt: Punjab & Haryana High Court Orders Rs 4.5L Refund

The Punjab and Haryana High Court ruled that the state government cannot levy taxes on electricity consumed by central government entities. The court found that such taxation infringes upon the central government's exclusive rights, as outlined in the Constitution of India. This decision stemmed from a dispute where the central government challenged the state's authority to impose taxes on its electricity usage. The court's ruling reinforces the constitutional protection that prohibits state taxation on central government functions, ensuring that central entities are not subject to state levies on utilities. This judgment clarifies the division of powers between central and state governments regarding tax imposition.