Case Note & Summary
The petitioners, comprising 10 educational institutions managed by a charitable trust, filed a writ petition under Article 226 of the Constitution of India challenging a letter dated 4 June 2018 from the Industries, Energy and Labour Department, Government of Maharashtra, which revoked the electricity duty exemption previously available to them under Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958. The exemption had historically been granted to all schools, colleges, and students' hostels irrespective of registration under the Maharashtra Public Trust Act, 1950. Following the direction, the electricity distribution companies initiated levy of electricity duty at 21% from 1 September 2016 and raised supplementary bills. The petitioners sought a writ of certiorari to quash the impugned letter, a writ of mandamus to cancel the bills, and a writ of prohibition against future levy. They contended that the exemption under the Act was unconditional and covered all educational institutions. The court issued Rule and made it returnable forthwith by consent of the parties. The judgment, reserved on 22 January 2019, was pronounced on 28 February 2019. The provided extract does not contain the court’s analysis, findings, or final decision.
Issue of Consideration
WRIT PETITION NO. 2961 OF 2018
Case Details
2019 LawText (BOM) (03) 40
Writ Petition No. 2961 of 2018
S. C. Dharmadhikari, M. S. Karnik
Dr. Milind Sathe, Mr. Bhushan Deshmukh, Ms. Kavita Srivastav, Mr. Gaurav Srivastav, Ms. Manorama Mohanty, Mr. A.A. Kumbhakoni, Mr. Ashutosh Kulkarni, Mr. H.B. Takke, Mr. Rushi Mathur, Mr. H.N. Vakil
Shri. Vile Parle Kelvani Mandal & Ors.
State of Maharashtra & Ors.
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Nature of Litigation
Writ petition under Article 226 of the Constitution challenging the revocation of exemption from electricity duty for educational institutions and the levy of electricity duty.
Remedy Sought
Petitioners sought a writ of certiorari to quash the letter dated 04/06/2018, a writ of mandamus to quash the electricity bills levying duty, and a writ of prohibition against future levy of electricity duty.
Filing Reason
The Industries, Energy and Labour Department, Government of Maharashtra, vide letter dated 4 June 2018, withdrew the exemption from electricity duty previously available to educational institutions under the Maharashtra Electricity Duty Act, 1958, and directed electricity distribution companies to levy duty from 1 September 2016, resulting in supplementary bills.
Issues
Whether the exemption from electricity duty available to educational institutions under Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958 could be revoked by the impugned communication dated 4 June 2018, and whether the levy of electricity duty on petitioners is illegal.
Submissions/Arguments
Petitioners contended that Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958 provided an unconditional exemption for electricity consumed by schools, colleges, and hostels, irrespective of registration under the Maharashtra Public Trust Act, 1950, and that the withdrawal of such exemption was illegal.
Judgment Excerpts
That this Hon'ble Court be pleased to issue writ of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records, papers and proceedings of the present case and after going into the legality and proprietary thereof, be pleased to quash and/or set aside the impugned letter dated 04/06/2018 and the legal opinion annexed thereto at Exhibit 'B' hereto;
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
Rule issued; respondents waive service. By consent, Rule was made returnable forthwith.
Acts & Sections
- Societies Registration Act, 1860:
- Maharashtra Public Trust Act, 1950:
- University Grants Commission Act, 1956: 3(1)
- Electricity Act, 2003: 14
- Maharashtra Electricity Duty Act, 1958: 3, 3(2)(iii)
- Maharashtra Electricity Act, 2016:
