Charitable Education Institutions are not entitled to the exemption from payment of electricity duty under Maharashtra Electricity Duty Act, 2016, rules SC
The Supreme Court in the case of the State of Maharashtra v/s Shri Vile Parle Kelvani Mandal & Ors. ruled that Charitable Education Institutions are not entitled to the exemption from payment of electricity duty under Maharashtra Electricity Duty Act, 2016.
The petitioners are the education institutions run and managed by the petitioner 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. The petitioners have taken electricity connections for power supply to their education institutions from respective power supply companies. 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. 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 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.
Advocate Sachin Patil, counsel appearing on behalf of the State has vehemently contended that in the facts and circumstances of the case, the High Court has committed a grave error in holding that the writ petitioners, charitable education institutions are not liable to pay the electricity duty.
Advocate Shekhar Naphade, Senior Advocate appearing on behalf of the writ petitioners contended that in the facts and circumstances of the case and considering the fact that the writ petitioners are charitable education institutions, the High Court has rightly held that they are exempted from payment of electricity duty.
The division bench of Justice M. R. Shah and Justice Sanjiv Khanna noted that if the submissions on behalf of the petitioners is accepted that as per Section 3(2)(iii), with respect to all the schools/colleges or institutions, imparting education or training, the electricity duty is not leviable, in that case it would lead to absurd result. In that case, even the private hospitals, nursing homes, dispensaries and clinics, who are profit making entities, shall also claim the exemption from levy of electricity duty.
The court quashed and set aside the impugned judgment and order passed by the High Court and held that charitable education institutions registered under the Societies Registration Act and the Maharashtra Public Trusts Act, are not exempt from levy/payment of electricity duty levied on the consumption charges or the energy consumed even with respect to the properties used by such charitable education institutions for the purpose of or in respect of the school/college imparting education or training in academic or technical subjects.
The Supreme Court in the case of the State of Maharashtra v/s Shri Vile Parle Kelvani Mandal & Ors. ruled that Charitable Education Institutions are not entitled to the exemption from payment of electricity duty under Maharashtra Electricity Duty Act, 2016.
The petitioners are the education institutions run and managed by the petitioner 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. The petitioners have taken electricity connections for power supply to their education institutions from respective power supply companies. 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. 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 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.
Advocate Sachin Patil, counsel appearing on behalf of the State has vehemently contended that in the facts and circumstances of the case, the High Court has committed a grave error in holding that the writ petitioners, charitable education institutions are not liable to pay the electricity duty.
Advocate Shekhar Naphade, Senior Advocate appearing on behalf of the writ petitioners contended that in the facts and circumstances of the case and considering the fact that the writ petitioners are charitable education institutions, the High Court has rightly held that they are exempted from payment of electricity duty.
The division bench of Justice M. R. Shah and Justice Sanjiv Khanna noted that if the submissions on behalf of the petitioners is accepted that as per Section 3(2)(iii), with respect to all the schools/colleges or institutions, imparting education or training, the electricity duty is not leviable, in that case it would lead to absurd result. In that case, even the private hospitals, nursing homes, dispensaries and clinics, who are profit making entities, shall also claim the exemption from levy of electricity duty.
The court quashed and set aside the impugned judgment and order passed by the High Court and held that charitable education institutions registered under the Societies Registration Act and the Maharashtra Public Trusts Act, are not exempt from levy/payment of electricity duty levied on the consumption charges or the energy consumed even with respect to the properties used by such charitable education institutions for the purpose of or in respect of the school/college imparting education or training in academic or technical subjects.
