Case Law Details
State of Maharashtra Vs Shri Vile Parle Kelvani Mandal (Supreme Court)
Supreme Court held that charitable education institutions registered under the provisions of the Societies Registration Act and/or under the Maharashtra Public Trusts Act, are not entitled to any exemption from levy/payment of the electricity duty on or after 08.08.2016 i.e. from the date on which the Maharashtra Electricity Duty Act, 2016 came into effect.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 28.02.2019 passed by the High Court of Judicature at Bombay in Writ Petition No.2961 of 2018, by which the High Court has allowed the said writ petition preferred by respondents No.1 to 10 herein original writ petitioners (hereinafter referred to as original writ petitioners – education institutions) and held that the original writ petitioners are exempted from payment of electricity duty, the State of Maharashtra has preferred the present appeal.
2. That the original writ petitioners are the education institutions run and manage by original writ petitioner No.1 – Shri Vile Parle Kelvani Mandal, a society registered under the Societies Registration Act, 1860 and also a public charitable trust registered under the Maharashtra Public Trusts Act, 1950. That the writ petitioners have taken electricity connections for power supply to their education institutions from respective power supply companies. That prior to 01.09.2016, the charitable education institutions were exempted from payment of electricity duty levied on the consumption charges or the energy consumption for the purposes of or in respect of a school or college or institution imparting education or training, students’ hostels, hospitals, nursing homes etc. as per Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958. That in the year 2018, the respective electricity supply companies levied the electricity duty pursuant to a letter from the Industries, Energy and Labour Department, Government of Maharashtra stating that as per Maharashtra Electricity Act, 2016, charitable institutions registered under the Bombay Public Trusts Act, 1950 (now known as Maharashtra Public Trusts Act, 1950) for the purpose of or in respect of school or college imparting education or training in academic or technical subjects are not entitled for electricity duty exemption with effect from 1st September, 2016. The respective power supply companies levied electricity duty at 21% and the bills were raised accordingly on original writ petitioners and their education institutions for the period post 01.09.2016. Aggrieved by the levy of electricity duty on the educational charitable institutions run by the original writ petitioner No.1 – respondent No.1 herein, original writ petitioners preferred the writ petition before the High Court. By the impugned judgment and order, the Division Bench of the High Court has allowed the said writ petition and has set aside the levy of electricity duty on writ petitioners and consequently has set aside respective electricity bills levying the electricity duty on consumption of electricity charge.
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