Case Note & Summary
The petitioners, ten educational institutions run by a society and charitable trust, sought to quash a communication dated 04.06.2018 from the Industries, Energy and Labour Department of the State of Maharashtra, along with consequential electricity duty bills. The communication stated that the exemption from electricity duty previously granted to charitable institutions running educational institutions under Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958 stood withdrawn by the Maharashtra Electricity Duty (Amendment) Act, 2016 with effect from 01.09.2016. Pursuant to this, the electricity distribution companies levied duty at 21% and raised supplementary bills for past periods. The petitioners contended that the amendment merely substituted the outdated reference to the Bombay Public Trust Act with the Maharashtra Public Trust Act and did not withdraw the exemption. They argued that the exemption continued for all schools and colleges, irrespective of trust registration, and the letter misinterpreted the law. The court admitted the petition, issued rule, and the matter was reserved for judgment. The extracted judgment text does not include the court's analysis or final decision.
Headnote
A) Electricity Duty - Exemption for Educational Institutions - Section 3(2)(iii), Maharashtra Electricity Duty Act, 1958 - The petitioners, educational institutions run by a public charitable trust, challenged a letter dated 04.06.2018 that interpreted the Maharashtra Electricity Duty (Amendment) Act, 2016 as having withdrawn the exemption - The matter was admitted and rule issued - (Further reasoning and decision not provided in extracted text).
Issue of Consideration
Whether the Maharashtra Electricity Duty (Amendment) Act, 2016 withdrew the exemption from electricity duty granted to educational institutions run by public charitable trusts under Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958
Law Points
- Exemption from electricity duty for educational institutions under Section 3(2)(iii) of Maharashtra Electricity Duty Act
- 1958 continues post Maharashtra Electricity Duty (Amendment) Act
- 2016 for charitable trusts registered under Bombay Public Trust Act
- 1950
Case Details
2019 LawText (BOM) (02) 20
Writ Petition No. 2961 of 2018
S. C. Dharmadhikari, M. S. Karnik
Dr.Milind Sathe, Bhushan Deshmukh, Kavita Srivastav, Gaurav Srivastav, Manorama Mohanty, A.A.Kumbhakoni, Ashutosh Kulkarni, H.B.Takke, Rushi Mathur, H.N.Vakil
Shri. Vile Parle Kelvani Mandal and Ors.
State of Maharashtra, Tata Power Company Ltd., Reliance Infrastructure Limited, Adani Electricity Mumbai Ltd.
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Nature of Litigation
Challenge to letter dated 04.06.2018 withdrawing electricity duty exemption and consequential bills
Remedy Sought
Writ of certiorari to quash letter, mandamus to cancel bills, prohibition to stop levying duty
Filing Reason
Petitioners, educational institutions, were previously exempt from electricity duty under Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958. The State Government issued a letter stating that the exemption was withdrawn by the Maharashtra Electricity Duty (Amendment) Act, 2016, and licensees started levying duty.
Issues
Whether the Maharashtra Electricity Duty (Amendment) Act, 2016 withdrew the exemption from electricity duty for educational institutions run by charitable trusts registered under the Bombay Public Trust Act, 1950.
Submissions/Arguments
The petitioners argued that the Maharashtra Electricity Duty (Amendment) Act, 2016 did not repeal the exemption available to educational institutions but only substituted the outdated reference to the Bombay Public Trust Act, 1950.
They challenged the letter dated 04.06.2018 as without authority and contrary to the legislative intent.
They sought quashing of bills levying duty retrospectively from 01.09.2016.
Judgment Excerpts
Rule. Respondents waive service. By consent, Rule is made returnable forthwith.
It is the case of the petitioners that as per section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958, the electricity duty was not levied on the consumption charges or the energy consumed for the purposes of or in respect of a school or college or institution imparting education or training, students’ hostels, hospitals, nursing homes etc. and thus, there was an exemption not only to educational institutions run by a Trust registered under the Maharashtra Public Trust Act, 1950, but to all schools and colleges, including students’ hostels, hospital etc.
Procedural History
The petitioners filed Writ Petition No. 2961 of 2018 under Article 226 of the Constitution of India challenging the letter dated 04.06.2018 and consequential electricity duty bills. The court issued rule and made it returnable forthwith by consent. The matter was heard and reserved for judgment on 22.01.2019.
Acts & Sections
- Maharashtra Electricity Duty Act, 1958: Section 3, Section 3(2)(iii)
- Maharashtra Electricity Duty (Amendment) Act, 2016:
- Electricity Act, 2003: Section 14
- Bombay Public Trust Act, 1950:
- Societies Registration Act, 1860:
